Oh, the automotive industry. What a wacky year you have had. There have been a lot of ups and some downs. We aren’t where we predicted we would be from last year. With that said, it is more important than ever before to have a proper pricing strategy. When it comes to pricing cars, you need to be competitive while also being considerate of your customer’s experience. You don’t want to race to the bottom, especially with prices going up. What you need is a solution that makes pricing simple, competitive, and accurate.
Wouldn’t it be great if you could drill down to specific equipment or packages when you are pricing your inventory to ensure value matches worth? That may seem simple enough, but all too often, many tools fail at being accurate in this process. You want to be fair, yet competitive in your pricing. Consider all the vehicles on your lot, as well as the vehicles at your competition’s store. When coming up with pricing, don’t be greedy. If you can’t stake your reputation on value, then you risk becoming a social pariah.
Having a solution to help you price means that your lot can be more desirable than any other on the block (assuming you have the inventory. If you don’t, contact us now to learn creative ways to acquire inventory during difficult times). Your goal should be to sell cars at the best gross possible. With trust and transparency, the customer will come to understand why you are priced the way that you are. They’ll even thank you for it. But to get there, you need a system to precisely match trim levels, access MSRP, and obtain original OEM package information.
If your current solution for inventory management isn’t doing that, then it is time for an upgrade. Not pricing based on competitive knowledge puts you at a disadvantage. Especially now with prices skyrocketing, you can’t just guess at a car’s worth. You need a solid foundation with clean data to help you with true valuation. The best part is that you can validate your pricing and appraisals in a way that avoids unnecessary discounting.
Building a pricing strategy shouldn’t give you a headache. It should fill you and your team with confidence and energy. You will be able to drive gross and volume. Because matching market demand is such a powerful concept right now, it is more important than ever that you stock the right vehicles, price them accordingly, and move them profitably. Remember, the customer is in control. So treat them with respect, but also stay competitive to market conditions.
To maximize profits while still managing to keep your customer experience stellar you need a solution that is next generation for inventory management. Listen to what is going on in the market and stay afloat with industry fluctuations. Communicate with your customers and be transparent in your pricing strategy.
As things continue to ebb and flow, dealerships need to turn away from being negotiators and consider becoming consultants. MAX Digital has helped countless dealerships to rightsize their pricing strategy and take advantage of current inventory to drive gross and volume. You don’t have to sacrifice one over the other. In today’s world, you need to stay relevant and competitive. MAX Digital has the tools to help you do just that. Schedule a free consultation today.