Problem: Copreneurs Ed and Yolanda recently opened a vintage used car lot called Cherry Lane. They sell antique and collectible cars on consignment for the owners at a fee of 30 percent of the selling price. The price is further reduced by 10 percent if a particular vehicle is not sold within the first 30 days. One of the first customers convinced Yolanda that this was the only fair thing to do and to provide something for "the cost-conscious buyer," she offered what she thought was excellent customer service and implemented the idea. Ed and Yolanda feel Cherry Lane has an ideal location. It is adjacent to the city's baseball stadium, alongside the freeway in the center of all the other car dealerships. Although Cherry Lane has significant foot traffic, most people never make offers to buy. To increase sales, Ed and Yolanda are working on a new marketing strategy that they believe should be quite different from the "shotgun" approach they have been using over the last few months.
How would you characterize Cherry Lane's strategy? Is this strategy appropriate?