CarMax charges a fixed fee regardless of the final sale price of the car. The buyers take that as a signal that these dealers, these sales people, aren't pushing a particular car on me. They're really in the service business of trying to help me find the best car for me because they have no incentive to push any particular car.
Why would anyone want to hire a middleman, like a wedding planner, especially if you have time to take care of the planning yourself? Marina Krakovsky, author of The Middleman Economy talks with EconTalk host Russ Roberts about middlemen in the modern economy. Despite predictions that the internet would destroy the need for middlemen, Krakovsky argues they're more valuable than ever though their roles have changed. Krakovsky looks at the different roles middlemen play today and how their value added can justify their existence.