How "Value Pricing" is changing the conversation

Jonathan Dawson
I live and work in MN where "One" price, "Value" price and "Traditional" pricing models all exist. I am personally partial to "Value" pricing of the three options. What are the pro's and con's of your pricing model?
Jim Bell
I think that the 'one price' strategy needs to be thrown out the window. That was a big thing when Saturn came out with it in the early 90's to make the customer feel warm and fuzzy and not have to worry about the haggling of a car deal. Traditional models are starting to go away and going to be a thing of the past. If you have a traditional pricing strategy of marking a car up $4000 and then discounting it $2000 for the sale, customers are starting to see through it. They can go on the net and find a similar vehicle for $2000 less than you have yours priced at and may never show up at your door. The value based pricing strategy is by far the best and where the market is trending. If you have your vehicles priced within the market, you will see the clicks, the walk in traffic, and sales go up. You will even see the bottom line go up as a result of starting out at a little lower gross because your turn will go up. You can build value with all od the tools that are given with all of the pricing tools put there. That will justify your pricing and you can discount at small increments and the customer will feel good about their deal and the dealership can make a fair profit as well.
Tim Nester
Agreed
Jeremy Anspach
Guys, As president and co-founder of PureCars i'm all about the value pricing strategy. We find that most consumers are unaware of critical details that make up a vehicle's selling price. This is due to the fact most shoppers are not aware of all questions us car guys would ask ourselves when we are looking at a pre-owned vehicle including: 1. How is it priced in the market compared to other similar vehicles? 2. What options does it have like Navigation, DVD Player, etc. 3. Does it have a clean Vehicle History Report? 4. Does it have any reported accidents? 5. How many miles on it? Is that low for the year? 6. Is it being sold at a reputable store that offers competitive financing, etc.? 7. Is the comparable vehicle(s) the same trim level? 8. Popular color? 9. Etc. As you can see understanding the value of a pre-owned vehicle is NOT easy to understand for most consumers since the information is not all available in one place and each vehicle is different! We find dealers losing gross because a customer "finds a cheaper one online" resulting in the managers lowering the price. However, that other vehicle may not have been the same trim level, been in an accident and may of had more miles. Most of all that other vehicle may not have had navigation and other options that the other vehicle which is priced higher does have. Why discount a vehicle that has more value that the other one that is less money? Dealers using PureCars Value Reports have an easy to read report showing both the salesman and the customer all of the value highlights of a specific used vehicle in stock. Our reports answer the top concerns of a used car shopper and are critical for dealers who value price their vehicles. Value pricing ONLY works when a dealer can justify the value in a vehicle and stores utilizing our reports both online and in the showroom have the tools they need to hold gross and sell more vehicles. Check out more details about PureCars Value Reports at: www.purecars.com/dealers Good post. Value Pricing is the way to go for sure! SIncerely, Jeremy Anspach President PureCars W: 877-860-7873 E: jeremya@purecars.com Value. It's more than just price!

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