"The lowest form of customer evolution is the Internet"
Huh?
That's a pretty broad generalization, especially given the extent to which rapport can be developed online prior to phone, and prior to the store. Customers continue to shop for a salesperson, whether on the website, email, chat, phone, or the in-store, these are all just different elements of a continuum of communication. You screw up any one of those up and the result is the same.
If discount is the only tool in your kit, it doesn't matter where you give the gross away, it's still gone. But used strategically, price (not discount) is an important tool that can help prospects develop rapport with right sales person. Good thing, because that online relationship can be the difference, the connection that helps one re-engage lost customers after a poor in-store experiences.
I agree with Larry, the key is to understand what motivates a prospect to become a customer. And that's the missing ingredient, the thing that handcuffs many dealerships; price is just a symptom of the underlying failure, not the cause.