Pricing strategy is one of the most important aspects that a dealer has at their disposal. I've seen both strategies employed by successful dealers and they usually swear by their stance.

Some like MSRP on their digital marketing. When people view their inventory on the classified sites or their own website, they see the manufacturer's price listed with a button or some other call to action alerting the customer to contact them for their "ePrice" or special sale pricing of some sort. The idea is that this gives them a reason to fill out a lead form or call the dealership.

Others like putting the sale price up. They will often include some or all potential discounts available with the goal of having their vehicles priced lower than their competitors for identical or similar options and features. The idea here is that by undercutting the competition, a customer is more likely to contact them or simply come into the dealership.

Note on Discounts: With the FTC starting to crack down on advertised pricing, we strongly recommend using services like Automark to position transparent pricing and incentive displays to reveal the path that a dealer used to get to a sale price.

Which way is better? We'd love to hear from you about what's working or not working at your dealership. A proper pricing strategy is so important, and while we understand that dealers don't necessarily want their competitors to know their strategy, we can assume that a discussion on this particular little forum likely won't be seen by many. Your answers are pretty safe here.

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  • This is a subject that I've battled for years.  We've been in the same location since 1974 and it's not known for being the best part of town.  I've noticed that the lowest price is not always what grabs the attention of the internet shopper.  There have been numerous times when a sale price has been posted and quite a few people have told me they were nervous to call thinking there must be something wrong with this vehicle priced so low.  It really can go either way.  It's then a matter of giving the consumer more incentive than just price. 

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