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Dennis Galbraith

Dennis Galbraith Chief Marketing Officer

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One Price Selling Requires Value Demonstration

It’s pretty clear that the one-price retail model will continue to grow each year for the foreseeable future. Whether or not it ever becomes the dominant retail pricing model, one-price has special marketing needs and requires some special marketing tactics.

The dealer’s website absolutely must demonstrate value. One-price is not a benefit to the shopper unless that price can quickly be recognized as a value. If the shopper sees comparisons like MSRP on new vehicles or original MSRP and book value on used vehicles, then the customer can be confident the offer price is a good value. At that point, the benefit of not having to negotiate can be the store’s competitive advantage.

Many shoppers don’t want to haggle, but they don’t necessarily want to pay through the nose for the privilege of not haggling. That option has always been there for shoppers at any store. It’s up to the one-price store to demonstrate value, and the place to do that is on the dealer’s website. The dealer’s site is used by more shoppers than ever, from the early stages of online shopping all the way through the store experience.

Ads driving traffic to the website can do so with the promise the one-price store not only prices their vehicles to be a great value but demonstrates it for all to see. Stores pricing their vehicles competitively without demonstrating the fact they have done so will never experience the full benefit of their marketing policy. Value demonstrations on the dealer’s website are a core and essential tactic when executing the one-price strategy. 

Grant Gooley
Well said as always Dennis! Value can be demonstrated in so many ways. We have dug into the OMVIC regulations and decided to really drive home the "Buy With Confidence" message. Basically we explain what "All In Pricing" is (through content rich landing pages & call to actions) being transparent, our initiative is to build trust and value with the customer, with an end goal of conversion!
April Rain
Dennis, I agree that dealers need to build value to justify the price but this true whether they are one price or not. I personally believe in a fixed pricing model as a way of removing that obstacle to the sale and most of the No haggle dealerships I know aggressively monitor market conditions to remain fair priced. I think the key point is how ARE dealers representing value to the consumer. Dealers spend hundreds of thousands of dollars to drive traffic to their website and don't put enough focus on WHAT they are communicating to the consumer. Many websites and portals display car, pictures, price & heavy VIN explosion of features which builds no value to the consumer. When there is lack of evidence to support their decision we force the consumer to bounce around and hunt for value. Sourcing content and market data sites like KBB, Edmunds & TrueCars. Sorting through listings on Cars.com, Autotrader & CarGuru's. Validating vehicle's history w/ Autocheck or Carfax. Confirmation of trust with Google, DealerRater & Yelp. We don't give the consumer everything they need in one place. A few companies are making strides to bridge the value deficiency gap like Edmunds for example with Price Promise, the consumer gets a no haggle price set by the dealership and Edmunds highlights how that price measure against True Market Value showing the customer they can win ease of buying and trust that it is a good deal. The second company is PureCars, who shows the value that make up the vehicle's price with their Value Intelligence Platform. Example: If a consumer is torn between 2 preowned vehicles that are similar in price but one has; $700 of reconditioning, a Clean Carfax report, CPO warranty and 4.5 star Review those two cars are no longer equal. One has proven a significantly higher Value. Seth Godin reminded all at the Driving Sales 2013 Presidents Club that people will pay for value, time and time again as long as its clear what they are getting!
Paul Schnell
Seems pretty straight forward and on point Dennis, thank you. I agree with April in that the "one-price" message isn't the important piece. It's the value statements. And I think that the point is even more basic and lends itself as the reason one-price is working so well for the dealers that commit to it: It's transparent. Your website must clearly represent your brand and, to Grant's point, if your brand message is transparency, your conversion rate (web visits-to-showroom visits) will tell you if you're on track. One-price is just one segment of transparency, so is a price-to-value statement. Does the rest of your messaging indicate a transparent showroom experience? And does that hold true once the guest arrives? A yes on both and you win.
David Ruggles
Most dealers I know fantasize about waking up tomorrow to find out all of their competitors have just gone "One Price." I can't believe this is coming around again and being touted as "New." It ain't. And who is pushing it as before? Vendors who want to charge you money to come in and show you how to do it. Saturn, SCION, Ford Collection. Check 'em out. http://www.autodealermonthly.com/article/story/2014/05/no-haggle-no-problem-or-not.aspx
David Ruggles
If your brand message is transparency, you're probably lying. Consumers don't believe it. You might be talking "relative transparency," but NOT real transparency unless you disclose EVERYTHING the consumer wants to know. Hell, dealers don't even tell their employees everything. What makes you think we will have real transparency between dealerships and consumers before we have transparency between dealers and their employees? A better question: Why should we? It has always been a requirement to gain a certain level of RELATIVE trust with consumers if you hope to do business. There is nothing new about any of this.

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