So we have a coupon on our website (pop-up and under) that says:
“Internet Savings Certificate”. It is a big converter on our website as it converts more customers then any other form. Last month for example half of our leads (new and used cars – not looking at service/parts etc) came from this coupon. We also sell a lot of cars of it.

The great thing about this pop-up is that it is essentially an iframe and not a true pop-up, so having your pop-up blocker turned on will not stop it from showing. Check out my website for ideas.

Now back to Special Internet Pricing. I think you should never give someone what they want without giving you what you want – you want their contact info! When you have that, you have to give the customer what they want. They want a price, give them a price, because if you do not, they will not be happy. Acura rates our Internet response based on the information we put in our first two emails:
- do we cross sell
- do give a price
- do we mention special offers
- do we brand our dealer
- do we sell the product (awards etc)
- response time

I would tell your GM that you gotta give the customer what they want when they inquire. Now I do not worry about a showroom customer shopping the same day to see whether he can get it cheaper on the internet, because if you have a good crm, your price quote does not go out automatically if it is a customer that has already been in. In addition, if you do not give them what they want, your competitor down the street will give them that Special Internet Price…..and guess what? You just lost a sale!

Maintaining optimal pricing manually is a losing battle. Cars are
volatile commodities. Supply & demand are never constant.

Dilemma 1: If you don’t display prices you might not get any inquiries. If you do show prices then they better be interesting, otherwise you certainly won’t get any response. Catch 22! If you are always forced to open negotiations at your lowest, least profitable price, then how can you ever score a home-run?

Dilemma 2: Pitching “No haggle low prices” sounds tempting to some, but how can one price fit all? Every buyer is not the same. Each has their own unique set of circumstances, priorities, and values; so a fair price for one may not be fair enough for another. What about the less demanding buyers who may have been willing to pay you more!

‘So, – either you lose deals because your price is too high, or you end up leaving money on the table, because your price is too low. Either way, you lose!

How about trying to set aside everything you ever learned about pricing, – just for a moment. Open your mind, step back and watch how two trillion dollars worth of securities get sold every day with no fuss; and always at the best price the market can bear.

Brian Ferris
DealMaker.com
‘matching supply & demand’

I’d be happy to clarify those two statements since they were each written with a different context as they relate to the overall purchase process…

Price, payment, and getting financed are the 3 top objections for me. Their ugly heads pop up during different stages of road to sell:

PRICE:
This battle happens before the customer enters my funnel. Customers are making decisions about whether or not they want to engage your dealership based on your displayed (or undisclosed) price. Who knows how many we gain or lose by showing or not showing a certain price. I display “List” prices and remind everyone that nobody pays the “List” price. Again, I should remind you that my market is mostly Special Finance. But most of my customers (including my prime buyers) know they don’t pay “List”. They want to haggle a little.

FINANCING:
I fight this battle over the phone mostly. Special finance customers want to be reassured that their time will not be wasted..again.

PAYMENT:
After winning the first two battles and getting them to show, Mr. What’s My Payment shows up during the negotiations. I’m not fighting the payment fight over the phone. Mr. Price Objection may show up again, but is easier to overcome because you can shift focus to other areas of deal, like payment.

I do think your dealership’s pay plan may be adversely influencing your sales process and having you do things that put up road blocks on the road to sell. (i.e. you wrote: “but as soon as I discover what they are doing I refuse to assist them, and advise them this is unethical and refer them back to their original salesperson.”)

This is why I do not prefer seperate Internet departments. They seem to cause more problems then they solve. Every salesperson should be in the Internet Department.

Several of you have different opinions about pricing, and you all may be correct. There is not a single pricing strategy that works in all situations/markets.

I know firsthand that pricing strategies work different in the Special Finance Markets (a rapidly growing market BTW). These folks are more concerned about obtaining financing. Price is not their top concern, at first. Payment is more important than price in this market.

Also, are you a volume store or high gross store? Many will say, “we want both.” But having it both ways is not realistic.

We prefer high gross – you can always come down in price to scoop up the prime, but you can’t go up.

Then you wrote the above: you have me a little confused Wayne, Take a look at both statements they are very conflicting to say the least.

From my experience & market, payment matters the most once the customer is in the showroom & negotiating. I agree 100%, showroom sales systems used 25 years ago still work today, but the customer has to be in the showroom.

Until we get to that point, we have to go use, as Jeff puts it, ‘new marketing’.

I agree: Yes they do want to haggel, but we still need to give people a reason to shop the internet and if I can keep my gross on my internet price I sure want to do just that. You know the old term ” if I could would you” still works just as good today as it did 25 years ago, and looking someone in the eye and letting them know our internet price is the best available still works also, but let me ask you does price really matter? Or is payment?

you wrote:
“Because internet prices are “no haggle” prices.”

I, personally, stay away from claiming ‘no haggle’ anymore. I want to give the customer ‘hope for gain’.

No haggle was good back in the early to mid 90′s with Saturn because the customer was at an information disadvantage.

Definitely not anymore. Now everyone is armed with vehicle information and feeling a little dangerous…

I believe the majority of people want to haggle a little and view ‘no haggle’ as another way for the dealer to control the customer. I could be wrong and welcome input from others, but I hear hundreds of phone calls a month and can hear it in their voices.

Overall, the customer’s confidence is up. They are not as afraid of being taken…and they know if your ‘no haggle’ price is a good deal or not.

Besides, with the current economic climate, people are fighting more for any kind of discount they can get. You bet some want to haggle.