Is invoice price the same as dealer cost? Is it reasonable to expect to pay dealer cost?
It would be very rare indeed for invoice to equal dealer cost. Dealer cost varies per industry, per product and per dealer, and is based on a wide variety of factors. In addition to the invoice price, there are other product factors, such as shipping from the manufacturer to the dealer, handling, and dealer prep. There are incentive factors, including retail or wholesale incentives the manufacturer may be offering to the purchaser or the dealer. There are cost of doing business factors, including but certainly not limited to inventory carrying costs, insurance, facility costs, labor, marketing and advertising, customer service, parts and accessories, service department costs, other overhead costs, etc. And there is dealer profit to consider. It is critical for a dealer to earn enough profit to be able to invest in facilities, systems, personnel, and customer support to ensure their customers’ ownership experience is as good, or better, than expected – on an ongoing basis.
