OnDemand WTP Pricing Research

Killing Car Dealership Business With Faulty Pricing? Here’s a Fix | WardsAuto

How to Tell If Your Online Pricing Strategy Is Killing Your Business

The customer must trust that the posted price is a real price. Does your Internet sales team use one-pricing strategy, but your showroom team use a different one? If so, this is a red flag. In today’s transparent economy, customers expect consistency between online and in-store experiences.

There’s always wiggle room for special-case discounts, but if the website price is consistently undermined by in-store staff, that confirms a customer’s suspicion that the price can’t be trusted.

When setting website pricing, the most common mistake we see dealers make is they don’t really set a price at all, but rather show MSRP and urge customers to submit contact info to “get e-price.” This strategy fails, because modern online customers expect e-price to be transparently available right now. If you withhold it, they’ll move on to the next dealership.

The second most common mistake we see is unrealistically low prices online designed to draw customers in by including conditional rebates and discounts that don’t broadly apply.

You can always show conditional rebates and discounts, but the right way to show them is to first clearly display the “universal selling price” (including universal discounts), then show a secondary, further discounted price, including clearly labelled conditional rebates.

The other nontransparent way may have worked in the past, but not in the age of online data. More often than not, its costs potential sales, especially from younger buyers. Today’s customers have more resources than ever before to research vehicles, so if you don’t show realistic pricing on your website, consumers will find it elsewhere anyways.

Read complete article here:

Killing Car Dealership Business With Faulty Pricing? Here’s a Fix | Digital Marketing content from WardsAuto.