New Car Pricing on Your Website and 3rd Party Sites

Eric Miltsch
Brian - I am completely puzzled why this debate continues to be a question today. People search online to for information to make a decision as easy as possible. How can dealers expect people to make a decision when they don't list the price? And I know it's an old argument, but it's true: If people don't see the price, they assume you're the highest price. Plus, many dealers are convinced it'll make the phone call ring - but if people do happen to call, they still want the price. If you're a dealer who isn't giving the price online, your internal process probably doesn't allow for much price transparency over the phone either.
Chad Sabatka
With our 3 markets - we price new similarly in 2. We do a market based approach with incentives that are available to everyone factored into our negotiation-free price. We are a Ford, Lincoln, Mazda in one market, Ford, Lincoln, Kia in other. With the other market (Ford, Lincoln, Kia, Mitsubishi) we price a percent over invoice depending on vehicle, then factor in incentives/rebates that are available to everyone. We leave negotiation room within this strategy. Both methods have worked out well for us. Example New F-150 Lariat Search Lowest To Highest : http://www.cars.com/for-sale/searchresults.action?mkId=20015&bsId=20218&mdId=21095&kwm=ANY&rd=50&zc=68521&PMmt=1-1-0&stkTypId=28880&requestorTrackingInfo=RTB_SEARCH&kw=Lariat&rpp=50&feedSegId=28705&searchSource=SORT&crSrtFlds=stkTypId-feedSegId-mkId-mdId-bsId&pgId=2102&sf1Nm=price&sf1Dir=ASC&sf2Nm=location&sf2Dir=ASC http://www.andersonautogroup.com/
Brad Hensley
Eric or Brian, Do you guys have any advice for an independent dealer as far as pricing goes. For example, should we book out NADA retail or leverage KBB in our advertising as OEMs do with MSRP and advertise it directly on our website? It's a few more steps for us but is it worth it?
Eric Miltsch
Brad, from my experience at ADUSA we relied heavily on showing the KBB values on our VDP's - this worked well because we were a low price leader in all of our markets. Showing our price vs. the KBB simply looked great. And yes, we used other on-page comparison tools to demonstrate how we were the low price leader agains the competition and not simply vs. KBB's prices. I believe there's more to it though than simply providing the comparison, shoppers like to see payments - eventually they're going to back into whatever they can afford. We not only showed the payments, but we also showed the bi-weekly payments as well. (Be sure you have the correct disclosures in place and they're easy to find & read - don't play game with that stuff - be open & honest!)

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