[podcast flashvars=”transparentpagebg: ‘yes’, titles: ‘Pricing Listings'”]http://dealeradvantage.cars.com/wp-content/uploads/2008/12/december_2008_podcast.mp3[/podcast]
Putting in place a pricing policy at your store helps you to quickly and consistently price your inventory for a timely sale and a healthy profit. It can also help you effectively manage negotiations with customers based on your current business goals and whether specific vehicles are in high demand or passing their prime. Let’s look at some of the approaches you’ll want to consider:
- Competitive price. When customers scan online listings, they typically avoid the least and most expensive cars. Finding the sweet spot in the middle signals in-market shoppers that they can get a good value and a fair deal at your store.
- Model range. Show customers you can connect them with the best car for their needs by providing a model range. Include the vehicle’s base, midrange and high-end trim levels.
- Invoice. To move the metal on a volume basis, consider providing the vehicle’s invoice price. Be sure to call this out in your response so that you drive the desired traffic. When shoppers arrive at your store, you may be able to switch them into a higher-gross new- or used-car alternative that better meets their needs.
- Average price. If you sell a number of models in various trim levels, you may want to provide customers with the average price paid by customers within a specified time period. Your DMS can provide this information on the fly; for example, the past week or 30 days.
- Out-the-door price. As a vehicle collects more dust than customer inquiries, it may be time to make car buyers an offer they can’t refuse. Advertising your bottom-line price often proves to be just the incentive they need to buy.
At the end of the day, you know what you’ve invested in the car and the price that allows you to get the gross you want and make a timely sale. Rather than adopt a single policy, you may be better advised to take a flexible approach so that you’re best positioning the vehicle given local market demand and conditions.
Looking for additional tips you can implement in your store today to drive more traffic with your online advertising and desk more deals with your internet sales processes? Check out Cars.com’s DealerCenter. Here, you can read previous editions of our DealerADvantage newsletter or listen to archived recordings of our DealerADvantage LIVE webinar series.