Price or No Price? Do you price your dealers inventory?
This topic has many years of life left in it, so I thought I’d start another attempt at mixing oil and water. I know there are at least two sides to this discussion and I look forward to some excellent feedback from those in the trenches. As for me, I believe in offering a price when your prospect asks for one. People are offended when someone on the phone or even worse via email, tells them that their presence is their leverage. Some people make a living teaching car dealers new ways to manipulate, intimidate and control their customers. If you still do business this way, please stop! You’re the reason people go to almost any length to avoid car dealers. How many times have you returned or referred business to some one that treated you that way? Be fair, be good, be honest, because it’s worth it.
Considerations
You wouldn’t be the first person to find that offering price immediately increases customers trust and comfort levels. Remember, most internet shoppers fear being the next victim of old-school-car-sales tactics. It doesn’t matter how much you reassure these people, you have to earn their trust! Delivering the selling price helps eliminate their fears.
And…if you put your prospect on the ceiling (sticker shock) when you offer the price, you will be able to determine their seriousness much quicker and eliminate wasting valuable time.
How Do You Deliver Price?
The best way to offer price is right down to the penny!
And…
Don’t quote dollars over cost or invoice, or percent over cost or invoice. The Internet shopper will likely perceive this as an old school selling tactic.
Avoid being vague about the price. Offering price ranges can be effective, but be aware of internet shopper’s lack of trust. They are almost always suspicious of the “get ‘em in” mentality which is common at most dealerships. You don’t want your lack of process to result in a buyer’s departure from your dealership.
Why Deliver The Price On The Phone? Won’t People Use It To Shop Me?
Some of your internet prospects may use your price to shop around, but the only way to stop them is by not offering price. Unfortunately, you’ll end up losing more sales by not offering price than by offering one.
People use the internet because they want information NOW. They are trying hard to avoid the same old, run-around at the car dealership. They want simplicity. If you want to sell more cars through your internet efforts, you’ll need to learn how to sell the value of a process that does not include hassle, pressure, intimidation, manipulation and stress. Ask yourself this question, isn’t it easier to find out early in the process that your potential customer will not or cannot buy, than it is to find out later?
How Can Your Dealership Create A Plan And Structure For Delivering Price?
Here’s a road map to help simplify the process:
- Establish a price range or “menu” for all models and trims
- Make sure your internet department is on the same page with sales management (this usually means that sales management is aware and supportive of this process)
You’ll see these benefits:
- Quicker price quotes
- Standard info now available for all sales people (most importantly your internet staff)
- Cut-down on extensive calculations (people don’t like waiting through multiple trips back and forth to the sales manager)
- Boosts prospect’s satisfaction level (have the same person work the deal start to finish and see how much your customers appreciate it.
Dealership Management Should Empower The Internet Department
More benefits:
- Instills confidence in your potential customers when it appears that you have pricing authority.
- Cuts down on time required by sales managers for internet deals.
- Management Must Buy-In At The Appropriate Levels To Be Successful
More benefits:
- Forces frequent and better communication between the internet department and sales managers (this is a huge area of weakness in many dealerships)
- Empowers internet department with authority to deliver the sales price.
- Encourages management support.
With encouragement and hope!
Shaun is the CEO and Consultant for Dealer Advisor
