Blog

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.

Email me when people comment –

You need to be a member of Dealer Bar to add comments!

Join Dealer Bar

Comments

  • 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. 

This reply was deleted.
matthew wheeler is now a member of Dealer Bar
13 hours ago
Simon Leggett shared their blog post on Facebook
Mar 6
Simon Leggett shared their blog post on Facebook
Mar 6
JD Rucker posted a blog post
"The other sites just have too much spam."
That was the complaint that we received most often when discussing with dealers and other vendors about the variety of sites out there that serve the automotive industry. One would have to sift through sale…
Feb 11
John Newber updated their profile
Jan 22
Brad Miller is now a member of Dealer Bar
Nov 10, 2016
Pete Gallego is now a member of Dealer Bar
Oct 28, 2016
Dianne Saunders is now a member of Dealer Bar
Oct 17, 2016
John Newber is now a member of Dealer Bar
Aug 30, 2016
Simon Leggett updated their profile photo
Aug 19, 2016
Simon Leggett posted a blog post
A number of traffic accidents are associated with distracted driving. This includes the use of mobiles which results in severe injuries or even loss of life.The continuous pings on our phones happen to distract us. You feel the urge to attend that m…
Aug 19, 2016
Simon Leggett and Amit joined Dealer Bar
Aug 8, 2016
More…