Pricing Vehicles Online

Jim Hyatt
I have been with my current auto group for about 3.5 months. We sell: Kia, Chrysler, Jeep, Ram, Dodge, and Nissan. I came in and implemented a new follow up system and new email templates and have increased sales from under 5 internet deals when I started to over 12. The store does about 100-120 cars a month. There are a few things I feel I am beating my head against the wall over and wanted some input from others in the business. 1: If a floor salesman closes an internet deal, then their commission is reduced. This causes salesmen to lie, manipulate the contact management system, and generally work against internet rather than with it. 2: Cars are not priced on our websites. All preowned vehicles have no pricing and all new cars are MSRP plus the window addendum. I feel this leads to a lot of bogus leads via the e-price button that really have no idea what a car costs and just want to find out. When they use the make an offer button we are usually 5-10k apart. 3: Our web traffic is terrible. Out of 372 leads this month only 44 have come through the website. Of that only 5 were on new cars. The rest come from 3rd parties. 4: The dealership has spent many years catering to the bad credit customer and because of this our customer base is terrible, full of "get-me-dones", and our reputation has suffered. I feel like refusing to price vehicles online, and only pricing cars in the office or at times after a credit app has been pulled hurts our credibility. However, our preowned manager averages around 5k a copy and sees it differently. He says if he can do the same profit selling half the cars he is all for it. This leads to number 5. 5: Our preowned manager will not let Internet price vehicles. All prices come from him, and they are usually 4-5k in gross. This usually puts us on average 1-2k over the competition.
mark rask
Wow! What a challenge......The Pay thing needs to change asap. we used to do something like that and it really hurt us. Prices on cars will drive traffic to your site.
Lauren Moses
I have to agree with Mark. You have a big challenge ahead of yourself. Does the Manager not realize that by not listing prices that 100-120 car sales a month you could bump that number up a good bit? Maybe put it to the "uppers" of give me 3 months...3 months to do it with the prices listed and let's see if it helps our numbers. If in 3 months the numbers haven't gone up then it can go back to the same old way and you remove the prices. Also, ask about maybe doing monthly specials on one or two used cars and see if they sell any faster than they would at regular retail.
Jim Hyatt
There are two used car lots, 1 at Chrysler/Kia and 1 up the road at Nissan. Their "experiment" was to price cars at Nissan and not at the other. They said they didn't get any more traffic. However the problem was that they priced everything at NADA retail. This usually put us at around 110-125% of the market price.
Lauren Moses
I would still suggest asking them for one more shot. If you weren't there then it's hard for you to gauge the effectiveness. You also don't know how well they marketed it (facebook, twitter, google, etc.) to help push the customers to your website. Rhetorical questions work wonders too....."Is there such a thing as making too much money?" or "So you DON'T want to make more money?" Since in the end if you can boost sales by posting prices and pushing customers to your website you would have higher profits.
mark rask
Lauren I agree with you about the specials

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