GM Experience Centers - Continued

In a previous post I raised the concept of having GM Experience Centers in major metropolitan areas as a way to economize the current inefficient dealer system. Here are some additional details on how I think it should work:

As I said in the original post, GM should put in one or two of these big centers in the top 25 metro areas. They would include a test track and customers could place orders for pickup at their chosen dealer. The buyer would be able to accesorize their vehicle at the Personalization station (fit between write-up and F&I). GMAC financing would be available for the buyers and the chosen dealer would get a cut of the finance revenue similar to today.

All dealers within 50 miles of the center would be obligated to participate and dealers outside of the 50-mile radius could opt-in to their closest center.

But what about pricing? Isn't that the big challenge? Technology can help here. Each dealer would be given access to a web portal that allows them to declare how much over/under invoice or MSRP they are willing to sell each particular vehicle for (not unlike the Costco buying program or CarsDirect). For example, Suburban at $100 over invoice; Camaro at MSRP minus $500; etc. If a dealer does not submit their data, their prices default to MSRP. This way a buyer can weigh cost vs. convenience.

Won't this continually put each dealer in competition with each other? Yes, it will lower the average transaction price, however in exchange, the GM Experience Center would also act as a huge warehouse for the vehicles, which means dealers could keep far fewer cars in inventory and thereby lessen floorplan costs dramatically. And, by having all of the vehicles in one place for a buyer to shop from (and experience with the 3-day test drive), a much higher closing rate should result. Remember, GM's biggest challenge today is CONSIDERATION. If customers can experience how good GM cars are today in a low-pressure, fun atmosphere, they are far more likely to add GM back to the shopping list.