Pricing pays

Long a sensitive area for dealers, pricing goes hand-in-hand with merchandising. Because consumers have access to comprehensive pricing information, they expect real and accurate pricing at the dealership and online. The best dealers always include a price with their vehicles, and they use pricing tools to buy and price the right cars in their market. These tools are also invaluable in setting up the infrastructure to change pricing to hit strategic turn levels and make real-time pricing adjustments. For New car pricing, dealers should refer to third-party and manufacturer sites to get a read on their market as well as vAuto’s New car pricing tool.
Good Practices
  • Inventory management tool generally used
  • Same price in all locations where the vehicle is listed
  • New cars priced based on manufacturer-supplied & third-party website information
Better Practices
  • Competitive supply/demand-based pricing tool used
  • Infrastructure to support price changes in line with strategic profitability and turn objectives
  • Pricing specialist reports to general manager
Best Practices
  • Priced to sell rather than negotiate
  • Valuation and pricing tool used to make real-time, market-based pricing adjustments
  • Manufacturer & third-party sites used to price new vehicles
  • Pricing reflects each new/used vehicle’s market appeal, based on competing units, color, condition, equipment and other factors
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