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Honda’s Agency sales model not working to plan

David Berthon

It seems that Honda’s new selling system dubbed an Agency Model is not working to plan with the company reported to have over 5,000 unsold cars on grass as we head into the new year. From July 1 Honda Australia reduced its national dealer network and took control of its own vehicle stock, selling it by fixed drive-away pricing and on-line ordering.

Discounts are a thing of the past the company claiming it provides a stronger focus on customer service and transaction transparency. With the new Agency model Honda expected to drop volume but also to gain consumer satisfaction in the process and a more profitable outcome. Only problem is sales Nov. year to date are down 40 per cent and many long-term customers who’ve dealt with a local dealer for some time feel disenchanted. The big question mark, how do you sell 5000 cars which are ageing on January 1 without a discount.

I’m David Berthon

(PS. Merry Christmas to everyone!)

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David Berthon
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