Flat Pricing

Mauro Andres
I have not. Actually I don't even know what it means. Even after I googled it... So can you explain that one to me please. I'm always open to learn what I don't know. Thanks.
Chad Sabatka
It's basically one price for everyone, no negotiations. Price is set by dealership and no matter who buys that vehicle that is what they pay. We are currently a one price store in one of our markets for new and used which are Ford, Lincoln, and Mazda franchise dealerships. From what we found is at first customers don't understand or like they cannot negotiate, but after they get in front of sales advisor almost everyone loves it. It's especially popular among females and younger buyers. It's a long term process that you must stick to, we're 18 months in and finally starting to really gain traction with it.
Jasen Rice
Flat pricing is where you would price a car at $15000 instead of $14995, its a strategy that I brought to the industry in my Sept 2011 article http://dealer-communications.com/inventory-management/why-would-you-ever-price-a-used-car-at-14995-again/ The article explains how customers will do price band searches on sites like Autotrader like $15000-$20000 and if we price it at $14995 we miss that search. I have been studying this strategy for over 2 years now and do a workshop that goes over all the benefits of pricing cars this way. If you are interested in find out more, please shot me an email at jasen.rice@vauto.com
Jasen Rice
Flat pricing is where you would price a car at a flat price like $15000 instead of $14995, its a strategy that I brought up in my Sept 2011 article http://dealer-communications.com/inventory-management/why-would-you-ever-price-a-used-car-at-14995-again/ the article explains it in more detail but basically consumers go to sites like Autotrader and do a search by a price band like $15000-$20000, so if you price your car at $14995 you miss that search for $5...by pricing at $15000 even you get both shoppers, the one that might search $10000-$15000 and the one that shops $15000-$20000. I have been studying this price strategy for over 2 years now and I wouldn't price a car any other way. I have a webinar that I can show all the benefits, or you can email me at jasen.rice@vauto.com for more info.
Mauro Andres
Thanks Jasen. And yes we have been using it for the last 8 month. Our VDP went up and our leads count too. I did not know it was called flat pricing by the way.

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