Our good friend Ed Brooks started a thread over on the DealerRefresh forums asking…
Is your vehicle pricing a real Strategy or nothing more than a Tactic?
This questions has caused a flood of comments and engagement with different opinions. We have many readers of the blog that have yet become a member of the forums. Take this great opportunity and sign up for the DealerRefresh dealer forums today and get started in on the conversation!
Read what Ed posted here and take your comments over to the forum.
Recently I was involved in a discussion on Twitter. I was taken aback at the phrase “pricing is just a tactic”. Twitter is a tough place to have an in-depth discussion, so I wanted to ask the DealerRefresh community for your thoughts.
My belief is that pricing can and should be an integral part of a modern automotive marketing strategy, but it could also be just a tactic. The right price on the right car can certainly drive traffic. By right price I don’t mean the cheapest, but rather a well-researched, competitive price. It becomes much more than just a tactic when a dealer leverages the transparency of the Internet to justify and hold their asking price by showing customers how their car’s pricing fits into the market.
A more “Old School” approach would be to use price to “Just get ‘em in.” The next steps for an “Old School” dealer would be switching the customer to another car and working hard to drive up the gross. In this case price is just a tactic and one almost guaranteed to perpetuate all the well-worn car dealer stereotypes.
What do you folks think? Should pricing be an important part of your strategy or just a tactic?