Correct - in a perfect world
And then each dealer group in a market gets sued for antitrust or class action price fixing, because there's no price competition in a normal supply-and-demand market (i.e. not the market we have now, the pre-Covid market). Assuming they all insist on full sticker, that is.
Tesla gets away with this because there's no dealers. I don't think a bunch of dealers in one town do if they all agree to charge full price.
True, a bunch together - it gets messy.
But instead of "8" people - owning "8" different dealerships in Metro-Town, USA... ..let's say there's now 2. Or even 3. They now control Google search - for that market. They control recalls and warranty - for that market. Do they sign a contract to fix prices? Nope....do they go golfing and chat? NO COMMENT....and then....they will end up doing it the sacred Tesla, CarMax way: Full Price, pay full sticker, and you can say there was no BS. Hey, it's only money Jonesy.
Also, the big groups - the chains - they keep getting bigger. Again, evil single rooftop dealers- sell out for big money to them. And this isn't just one town....it becomes regional, even national as Time goes on so is that a monopoly? Nope....it just means that they have higher gross profit standards per sale - because they have shareholders to answer to. So guess what surrounding dealers do?? They also enjoy the higher margins. These BigGroups - are very talented and sophisticated. Their profits per car are....well....you don't believe them till you audit for yourself.
In the end, it'll be higher profits, for less entities. The entities left over have it maid - higher labor rates, and no "gimme your best deal...." - because sticker is the best deal. Right now, during shortages - over sticker is a deal. They are getting a taste of it, and they know eventually competition comes back when supplies normalize it - - but big dealer grouse and manufacturers are now having dialogue on how to have less competition - and forever higher gross profits. And hey, the customer can have the Tesla Carmax experience "I paid what they told me to pay, woo-hoo".... which is great. Everyone....wins, I guess.
Also, the good part will be more manufacturer controlled service departments. Dealers will share them....but they won't be directly responsible for levels of service but this is perhaps 2030-2034 because of real estate ,etc.
Writing is on the wall.
None of the above is opinion: I've intimately, personally seen it all my life.....and I've contributed to it and benefitted from it.