Reason #3: Automated Pricing Phenomenon

Why Every Dealer Should Track Competitors’ Prices

By: Danielle Longenecker, Product Marketing Manager

Dealers today need every technological advantage they can get in order to successfully compete in the market. One solution that should be quickly included within a dealership’s arsenal is an automated pricing tool.

A recent survey of car shoppers on GetAuto.com revealed that 94% of consumers were extremely unlikely to request information on a vehicle without a listed price. Today’s shoppers want transparent and accurate information, they want it up front, and they want to work with dealers who want to play ball rather than a cat-and-mouse game.

94% of consumers were extremely unlikely to request information on a vehicle without a listed price.

This shouldn’t be surprising; however, it’s still eye-opening to see how many car dealers have yet to change their processes to reflect this operational necessity. We caution dealers using “Call For Price”. When a new or used car dealership aligns its pricing strategy to embrace transparency and promote market-credible pricing, it command more attention from consumers and sells more new/used vehicles.

Their price is right. Is yours?

If the burden of manually entering competitive market pricing for every new and used piece of inventory has led to negotiations, there is a simple solution – automated pricing software.

There are many options for this type of inventory tool in the industry, and if you aren’t use one, chances are good that your competition has surpassed you.

An inventory pricing tool is only as good as the data that powers it. When reviewing the many options for automated pricing software, keep these few things in mind:

  1. Market and Competitive Intelligence – Price vehicles with in-depth market data to make your dealership stand out against competitors. Knowing your market and your competitors’ prices is the first step.
  2. Incentives and Rebates – Add discounts to your vehicles with a simple, rule-based software and give your shoppers the information they need to make a better purchase decisions.
  3. Data – Without the right data, the first two bullets not only won’t be as impactful, but won’t offer the information needed to stay competitive or engage the shopper. Be aware of how the pricing software gathers data and feeds the components to effectively price ALL of your inventory.

Automated price-changes from software products like Dominion Inventory Manager have helped dealers ensure long-term profitability and build trust with the consumer. Get more information on our pricing and incentive tools online or call 877-421-1040.

Check back with us next week as we continue the competitive pricing blog series with Part 4. Until then, catch up on this series with Why Every Dealer Should Track Competitors’ Prices and Real Time Doesn’t Wait from earlier this month.

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