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Jared Hamilton
From: Jared Hamilton
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Bryant Gibby

Bryant Gibby Used car manager

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Internet pricing

     Our store has always been a bottom line price store. It has worked out very well for us in the past and continues to work well with the exception of one thing, internet pricing. 

 

     We have always used the exact same price when we do price quotes for internet leads as we have our bottom line price for a walk-in customer. Our strategy has always worked on used cars because we price our cars so aggressively. Our strategy should work on new cars because we also price everything aggressively but it seems like we are losing the pricing war online.  We are still pretty competitive on most cars, but we seem to be getting killed on pricing when it comes to the expensive stuff ( F-150's, Superduty's, etc ).

 

     We are considering of implementing a totally different pricing strategy and starting an internet pricing matrix aside from our current pricing matrix. We are nervous to do it because this is definitely unchartered waters for us, but at the same time realize it is the only way we can keep our competitive edge. I was just wondering if most dealers have special internet pricing like we are considering doing? If so, what is your internet pricing like relative to invoice on the more expensive vehicles? 

Jason Courter
Have you thought about not pricing at first shot and establish relationship first...set appt and sell value? Or do you think that wont work.
Craig Waikem
Our price grid is in county and out of county, but it's usually only $100-$200 difference. So the farthey away they live, the bigger discount. Don't be afraid of low prices, shoppers usually change vehicles once they show up.
Charles Gallaer
I'm unclear how matrix pricing works on vehicle sales. Could someone clarify?
Craig Waikem
Our sales managers can sell whatever they want case by case. Internet quotes are by model (not trim) certain dollar figure above or below invoice. For our Honda Store an internet price matrix/grid could read... -100 invoice Accords +500 invoice Civic -100 invoice CRV
Jim Bell
I would be careful in having 2 different pricing strategies. Stick with one if you have been successful. If a customer sees something online and walks on the lot and sees a higher price, you may just miss them and they won't talk to anyone and get in their car and leave just by seeing a higher price at the store than online. Or another scenareo is a customer comes on the lot, buys, and goes home and pulls up the car on the net and sees a lower price. It may come back and bite you where the sun don't shine.

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