Dodge dealers can start ordering the 2015 Challenger SRT Hellcat now. Photo from www.theepochtimes.com

It’s not uncommon to see a desirable car arrive in the showrooms at dealerships across the land in limited numbers. Most of the time, this isn’t even noticeable. When you have a car that is eagerly anticipated, much like the Dodge Hellcat is, we’ve seen some dealers get greedy and decide to jack up the price. This profiteering is often referred to as “price gouging,” and happens much the same way as any commodity after a supply shock.

The Hellcat has created interest among enthusiasts which could lead to higher dealer mark-ups. Photo from www.dodge.com

Basically, price gouging is a situation in which a seller prices goods or commodities at a level much higher than is considered reasonable or fair. We saw this happen recently when BMW dealers were accused of price gouging the BMW i3 electric car. With waiting lists up to six-months long in some cases, the dealers were accused of marking up the i3 leases by $3,000 to $5,000.

Dodge realized this could happen with their newest release, the much talked about Dodge Challenger SRT Hellcat. In order to prevent any greedy dealers from taking advantage of enthusiasts, the company has changed it allocation methods to the distribution lines. This news was reported by autonews.com.

According to autonews.com, Dodge will allocate the number of Hellcats to dealerships based on the number of vehicles sold in the past six months. This includes all Dodge vehicles in the lineup. Dealers can begin ordering now, but the distribution of the popular Hellcats will go to dealerships that consistently sell the Dodge brand. In December, a second allocation calculation will be made based on the previous 90-days’ sales performance, as well as a traditional 30-day inventory turn.

Photo from www.dodge.com

After the initial allocations have been completed, the company will look at Hellcat’s days-on-lot number to determine the number of future SRT Hellcats a dealer will get. According to autonews.com, Dodge brand head Tim Kuniskis said, “It’s going to be a nightmare, but I think it’s the right thing to do. I have no issue with market pricing. The dealers have a right to do so.”

Photo from www.dodge.com

Short term profits over customer loyalty has long been an issue for car dealerships. Most recently, Chevrolet dealerships experienced the same conundrum. Do you take advantage of the furious early demand or score points with customers by staying with the sticker price?

Dodge is minimizing the opportunity for dealerships to breach the loyalty of their customers by promoting a dealership loyalty program of their own. This one is completely based on brand selling, but it would seem to be one credible way to stop any profiteering.

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