Real Issue Survey: The Cost of Price Wars
A national company recently entered our market, which sparked a price war. Our commissioned salesmen are disgruntled due to reduced income caused by lower gross profit margins. I want to keep my people upbeat to do their best everyday. I explained that this was probably a temporary situation, but I could not be definite about another company’s long-term strategy. I believe I will lose some good people to other industries if I can’t compete in wages. How do other dealers handle this situation?