Build VALUE- Hold GROSS (why your customers mind has to change from price to value)

Andrew Breedlove

Hello all, new to these parts. I am hoping this post adds some much needed value to used car portion of the board. I wanted to share a post I made specifically for a FB group I am in the other day. I quizzed them what the current automotive shopper looks for specifically when making a decision to purchase a car. A "mental checklist" if you will...Most answered with VALUE based around their dealership and the sales team (this is great but not what a customer cares about when buying the right car)

Here is how it breaks down.....

1) similar make
2) similar model
3) similar equipment 
4) similar miles 
5) a Clean CARFAX 


And if all of those match up the only determining factor for their buying decision is PRICE!

Are you kidding me?!?

Not every used car is prepared the same. We all know that. There are some who have high integrity and excellent processes who spend well over $1,000 in recon work to make sure the car is road ready with no issues. Then there are some who will wash it and shine it up and stick it on the front line.

If both of those have Clean CARFAX which one does the consumer choose? Obviously the cheaper one that had zero work done to it. 

Isn’t that stupid?!? We (the automotive industry) HAVE to change the customers mindset and stop letting those third party vendors (most who have never been a dealer before) tell you to drop your prices to sell your cars. 

How about you increase your integrity and your process and sell the car for a reason. But hey, don’t think for one minute you can sell the price before you sell your value. If you do it that way you are justifying your price. If you build value first when they try to talk about dropping the price you use real relevant facts to support your price. That’s VALUE!

Build VALUE  - Hold GROSS. That’s what we help with here at AutoiPacket. Let's change this horrible decision making process across the country together. We have over 600 dealers Nationwide including every Sonic Automotive location helping us do this currently. Together we can teach the customer that the car business has changed (for the most part..) and is no longer about ripping a customers head off for profit.

Ian Coburn

As a whole, the industry is taught to "show up and throw up." Now add "customers already make their decisions online and do all the research before they come to us" and we think the customer has done all the necessary work. The result? More "show up and throw up:" i.e. more focus on us, our product, and our team. We get further and further from the customer's "Why," which is what motivates them to take action, and, in turn, tying it to our "Why," which then shapes the value for the customer of which you speak. I don't think most people in the industry are thinking about "ripping a customers head off for profit;" rather, most haven't been provided training content outside of "pitch," "pitch," "pitch!" They don't know any other way. Great point that "value" is what is needed. Thanks for posting!

Mark Rask

This really hilites the value...like it 

Andrew Breedlove

Ian, I mean it in the sense of there are still shady dealers out there that do that exact thing. The ones who operate and have always operated with some sense of integrity are excluded from this. But, you and I both know there are plenty of dealers who just care about profit and making money vs delivering a nice unit.

 

Andrew Breedlove

Mark, thank you for checking it out! Glad you enjoyed it my friend.

Derrick Woolfson

I agree, Andrew! Value packets (from my experience) have been very valuable, and to your point - my biggest frustration with the "drop the price" tactic could have more to do with how the vendor displays/ranks your inventory (based on price), and not 'value' - i.e. packages, year, make and model. I have found that cars that are not doing well on endemic sites are getting more leads through our website, and sell. And customers are willing (again, as you mentioned) to pay a little more if they believe the value of the car. 

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