Fixed Price Policy
From Feburary 15th, 2014 BBT has sucessfully implemented the fixed price policy with perserverance.
Understanding Fixed Price Policy
Fixed Price Policy at BBT refers to Cost plus Pricing The selling price of a car at BBT is determined by the following 2 steps:
- Cost of Procuring the Vehicle
- 5-7% Operating Margin (depending on vehicle make and model)
- The addition of the above given costs results in the selling price or the retail price of the vehicle. We are here to help the customer understand how standardisation and fixing of costs would help them more rather than us.
Some of the Rebuttals
- We don't believe in Brands , but "we believe in Quality and quality has one definition".
- We sell quality not price.
- Life isn't about finding yourself. Life is about creating yourself.
- Too many people overvalue what they are not and undervalue what they are.
Benefits to Customers
- Insulation from market fluctuations: The price risk is with us and not with the customer.
- Certainty of final price: With the exact price in front of the customer, they can do budgeting accordingly.
- No Hidden Charges.
- Consistency in top quality and exceptional customer services.
- Fast Feedback
- Increase in Efficiency & Decision Making Power amongst Sales Employees
- Increase of Confidence in Quality by both Employees and Customers
- Product is strategically priced taking into consideration the operating cost, fluctuation in the industry and demand.
- Pull Factor Pricing
- The current clients and referrals may find it difficult to adapt.
- Accuracy is critical component in Cost plus Pricing/Fixed Price Policy. This model relies on variable costs such as logistics, insurance, car servicing and other such factors, and fixed costs i.e. buying cost. If either of these estimates is inaccurate then the entire cost structure is incorrect