This is what we use to differentiate us from our competition. Honesty up front and no extra hidden billings. There are a number of dealers that don't track profitability or know how to properly price a contract from the beginning. They just raise contract prices because that's what they think the industry does. They have no clue if they are making money on a contract or not. They end up giving the rest of us a bad reputation. Its a painful education process for customers but well worth it once they can see the difference in our dealerships practices. I am sure some dealers know their profits but still go for the cheese, but it is not a practice that we choose to follow. Honesty wins out over time.
What about lease escalators? I see more and more dealerships that are escalating the customers lease agreement by 10% to 15% every year on top of 10% on every maintenance contract and charging shipping and handling fees for every INVOICE that goes out by 5% to 7% of the invoiced amount (nothing is actually physically shipped, just an invoice for maintenance contract or monthly lease bill). Now to me these practices are underhanded and cheesy! The lease escalation to me are ridiculous. The stated selling price of the the machine that the customer thought they bought is not what they end up paying. Ten percent increase every year on a five year lease can add up to a substantial amount.