BROWSE

Dealer Incentive

What is 'Dealer Incentive'

A corporate sales strategy in which the price a dealer has to pay a manufacturer for a particular product is reduced, allowing the dealer to make a higher profit or to reduce the price at which the product is sold to consumers. Dealer incentives can be tied to certain sales quotas, meaning that the dealer will only receive the incentive when a certain number of units is sold.

Explaining 'Dealer Incentive'

Dealer incentives are often associated with the automobile industry. Manufacturers will reduce the price a dealer has to pay for a particular vehicle model in the hope of increasing the sales volume of that model. If the dealer charges the end consumer the same price but pays less to acquire the model, then the dealer earns a higher profit. The dealer can also pass the cost savings to the consumer, but may not be required to do so.


Further Reading


The failure mechanics of dealer banks
www.aeaweb.org [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Dealer versus auction markets: A paired comparison of execution costs on NASDAQ and the NYSEDealer versus auction markets: A paired comparison of execution costs on NASDAQ and the NYSE
www.sciencedirect.com [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Completing contracts ex post: how car manufacturers manage car dealersCompleting contracts ex post: how car manufacturers manage car dealers
www.degruyter.com [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Contractual allocation of decision rights and incentives: The case of automobile distributionContractual allocation of decision rights and incentives: The case of automobile distribution
academic.oup.com [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Broker-dealers and investment advisers: a behavioral-economics analysis of competing suggestions for reformBroker-dealers and investment advisers: a behavioral-economics analysis of competing suggestions for reform
heinonline.org [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Corporate sale-and-leaseback transactions: An examination of corporate incentives, wealth effects and dealer spreads.Corporate sale-and-leaseback transactions: An examination of corporate incentives, wealth effects and dealer spreads.
elibrary.ru [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Bid-ask spreads in multiple dealer settings: some experimental evidenceBid-ask spreads in multiple dealer settings: some experimental evidence
www.jstor.org [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

A model of incentives for the illegal exploitation of black rhinos and elephants: poaching pays in Luangwa Valley, ZambiaA model of incentives for the illegal exploitation of black rhinos and elephants: poaching pays in Luangwa Valley, Zambia
www.jstor.org [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

Do dealer firms manage inventory on a stock-by-stock or a portfolio basis?Do dealer firms manage inventory on a stock-by-stock or a portfolio basis?
www.sciencedirect.com [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …

A new approach for assessing dealership performance: An application for the automotive industryA new approach for assessing dealership performance: An application for the automotive industry
hrcak.srce.hr [PDF]
… in the market value of the collateral, they may have little or no incentive to renew … these risks and other unforeseen difficulties simply by reinvesting their cash in new repos with other dealers. If a dealer bank's repo creditors fail to renew their positions en masse, the ability of the …