used car internet pricing

Bryan Cheers
Just looking to see what everybodys pricing strategy is for used cars on the internet. Where do you start out he gate, how often do you adjust and is it always to market pricing?
Russ Chandler
Good question Bryan! The simple answer is yes I always price to market pricing but that doesn't necessarily mean its exactly where the "target price" says it should be. At the end of the day pricing tools are just software and computers analyzing data. Not all the data can be analyzed perfectly so you have to take that in account when committing to a pricing strategy. Say you have a brown 2010 Chevrolet Impala with 50k and you happen to have a twin to it but in black. Black is obviously in higher demand in black but color isn't generally analyzed by the software. So make it a regular practice to actually look at the vehicles your competing against when pricing a car, don't just pop in the price it tells you to with out doing some analyzing of the competition yourself. As for how often that really depends on the vehicle and what type of action you get on it. The point to a pricing strategy is to get the most profit out of your car and still turn it quickly. A vehicle with a high MDS(Market-Day-Supply)will get frequent price changes until I start to see some action on it. If its generating leads or even getting lot traffic but not online then I would leave it where its at. If you are aggressively priced and still not seeing any action then I would lower the price every maybe week or two by small increments until you do. Eventually its going to be either be old enough where you'll be satisfied with just getting out of it without a loss or small profit. Think supply and demand when pricing and just use common sense when comparing it to what else is out there. Put yourself in the customers shoes and think about what it would take to get someone to call or submit a lead on your car. Are you priced a little higher but have the better color or options? Remember the goal is to sell the vehicle for the highest profit in the shortest amount of time and the price online is responsible for getting someone to inquire on the vehicle not sell it. The advertised price online is exactly that, advertising, so grade its performance like you would advertising. Hope this helps and feel to contact me to discuss in further detail if you would like. Thank you, -- Russ Chandler

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