By: Shane Marcum, General Manager, Cross-Sell and Inventory Solutions
The majority of today’s car shoppers want to shop for vehicles much like they shop for everything else online.
- They want to see images of the actual product
- They want images and descriptions to accurately represent the actual product
- They want the best price clearly displayed
- They want to know they can trust the seller
In short, consumers searching for new or used vehicles want an online shopping experience similar to what Amazon or Overstock offers. Automotive dealers should take a cue from two of the top online retailers. Dealerships posting vehicles with no price, a ‘call for price’ notice, or MSRP pricing miss out on potential sales from car shoppers who prefer price transparency and don’t want to haggle. A recent study by PCG Research reports that 61% car shoppers “don’t want to haggle.” The remainder of consumers shopping for a vehicle want to see a competitive price clearly posted and are willing to negotiate from there.
Price transparency is critical. According to IHS/Polk, 62% of car shoppers say pricing is the most important reason to research a vehicle purchase online. If pricing is not available, vehicles may not even be in consideration. Car shoppers are researching up until the last minute. Showrooming, where consumers use their mobile devices to verify information and price shop while at the dealership lot, is a growing phenomenon. It’s more important than ever to ensure price visibility and transparency. You don’t want to lose the sale in the final minutes.
Put your best, most competitive market-based price forward from the start. Your inventory will stand out and generate more interest than a similar vehicle priced at MSRP. Do this consistently to build a strong reputation as an honest, trustworthy place to do business. And, even if you are not sold on the one-price model, it may keep your vehicles in consideration for both one-price car shoppers and those who prefer to negotiate from a competitive starting point.
If you need assistance with determining the right price for your local market, we can help. Contact us at 1.877-421-1040 or visit our website to learn how Dominion Inventory Manager can provide the guidance and insight you need.