Why does the dealer justify being slightly higher in price than a competitor?

Why does the dealer justify being slightly higher in price than a competitor?

• A. We are higher in price and higher in all areas
• B. We can be a little higher in price as long as we're the lowest in cost
• C. We cannot discounts at all
• D. We are not the highest in any area

Answer: (C)

Pricing decisions hinge on discount policy. If a dealer has a no-discount policy, the base price is fixed and cannot be lowered to match or beat a competitor’s lower price. That means a slightly higher price can be justified, because the dealer isn’t allowed to discount — the price you see is the price you pay. The other statements don’t fit as well because they imply broader aims (being higher in all areas, or always the lowest in cost) or mix in discounting assumptions that contradict a non-discount stance.

Pricing decisions hinge on discount policy. If a dealer has a no-discount policy, the base price is fixed and cannot be lowered to match or beat a competitor’s lower price. That means a slightly higher price can be justified, because the dealer isn’t allowed to discount — the price you see is the price you pay. The other statements don’t fit as well because they imply broader aims (being higher in all areas, or always the lowest in cost) or mix in discounting assumptions that contradict a non-discount stance.