Price or No Price???

[Jccarguy]

We are a Ford Dealer in the suburbs of a major city. We became a carpoint dealer and the training stresses not to give a price on the first responce. Using their templates has resulted in a low responce rate. Then their own surveys are being returned and the customers are saying they are dissatisfied because they asked for a quote and did not recieve one. We are now reponding with a price as well as questions geared to solicite dialog. Any thoughts or best practices?

[jmcdonald]

I have not been to carpoint's training yet, I go next week.

However, I have an autoresponder that gives the customer basic information on the dealer, the car and other information on the industry. My goal is "information overload".

Then, I write them on a unit that I have available, give them the MSRP, which they already know, and tell them I can get any car they want in a few days.

I send them to my online credit application to get "pre-approved", so I know who I am dealing with and if the have the ability to purchase.

Then I call them and invite them to the dealership, if they are buyers they come in, if not I continue to e-mail them and keep the conversation going.

I have found that 25% seem to want to buy right away and 25% want to buy in 30 days the rest are not real or fall with the 1-30 timeline.

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Jim McDonald
Internet Services Director
Ragsdale Motor Group
730 Boston Turnpike
Shrewsbury, MA 01545
P. 508-842-2242
F. 508-842-7197

[This message has been edited by jmcdonald (edited 01-11-2001).]

[apatton]

JCCarguy,
When I first started doing this(2 years ago)I went to evry training seminar for every buying service. What I found is that I am not using much of anything that they told us. This is just me but I have found that the faster you get them a complete response including equipment,MSRP and your selling price,the better off you seem to be. The idea being that you want to exceed there expectations. I think most of them are expecting to get a "come on down" approach and will probably blow you off if thats what you do. Another factor is that,especially in a major city area,they probably already have prices from others and are looking to compare. If you can even match there deal but do it without the hassle you have a better shot. One thing I've noticed is that there is no hard and fast rule. Some people will take your number just to shop it at another dealer...but if you give it to them without the hassle and they have to drag it out of the showroom guy maybe you are still ahead of the game. These are just my reflections...I certainly don't profess to be any kind of expert on it. Let me know what you think.

Andy Patton
Internet Sales Manager
Haltermans Auto www.haltermans.com

[JCCARGUY]

Thanks Andy for your input. I agree with your approach. We are trying to do it that way and in the short term seems to yield better results. We are blending the two approaches in so far as trying our best to start a relationship and deliver the pricing the customer asks for. Thanks again, www.conceptford.com

[Results]

I have dealers that keep trying all approaches to when to finally throw out a price. What I always end up saying is Welcome to the Information Highway.
You have several choices
1. You can post MSRP right on your site, then offer Internet incentives.
2.You can choose not to have prices on your site and let them contact you.
3. You can offer discounted prices on your site.
4. You can offer discounted prices on your first response.

You can see the options are any way you want to put them out there and I could rattle on and on with the options, but what is the bottom line? What does the customer already know? What information is already available to them? What do you ultimately hope to keep from them?
Are you promising them a hassle free integrity based buying experience?
I am from the old school and I dont want to give my price until I know if they are buyers, what their trade is, and what day are they going to pick it up. Unfortunately the Internet does not allow me as much information as I want, but it provides it to my consumer.
Okay, Okay I will get to my point (which is what your customer is waiting for also). My clients that insist on posting prices are not as successful with the hit to the site following through to a contact point. Meaning that the viewer see it as the Internet Best Price (even though it may say MSRP) and they go some where else.
I ask my Internet Departments to give all information freely and quickly, even price.
Like it or not we are dealing with Permission Marketing methods today. The up side to that is learning how to give for something in return.

They visited your site --- which gives them permission to contact you.
They contact you --- which gives you permission to treat them as a lead or e-up.
You contact them back with the requested information --- which gives you permission to begin the qualifying process.
They respond to you --- which gives them permission to ask more of you and so forth.

Give them what they want when they ask for it! That is unless you site says contact me for the best deal in town, because if it does you better have the price at your finger tips.



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Results
Mike Stinson
results@rintuit.com
www.rintuit.com

[Jccarguy]

Thanks Mike for your input. One issue we have noticed is that by replying with a competitive price immediately, the buyer may not decide for weeks down the road and often on a totally different model. We follow up aggressively for up to 6 months. It seems in many cases they shop our first price then upon realizing this model is outside their wheel house, ask for a quote on a lesser model but dont shop that price as hard and now more willing to accept an invitation to come in to the store.

[MarkB]

A quick note that may be useful, In developing websites as a Sales Manager I always wanted certain information before deciding whether to quote a price or not and very important to me was the location of the customer. I used the zip code and phone number for a couple if things.

1: Where is the customer? who's the competition there? (do you know your competition?) if your not sure what price they will quote the customer just call them up and ask them what their price will be. (the treatment you receive from them will also give you a good idea of what the customer will experience.....be better!)
I also found that the further away the customer is located the more beneficial quoting a price up front is, the locals are easier to get in the door and someone serious enough to shop a larger area will appreciate an "up-front" approach.

2: Phone numbers: I always maintain that if they won't give you a phone number they should be handled after those who do. The phone number will also provide you with location information and if your not sure who you are dealing with you can check the number using http://www.reversephonedirectory.com to confirm.

I'm not suggesting you become a superspy or anything I just believe that a little work will usually provide a better result....look at each lead twice and think before you quote a price.

Mark http://dealerswebsites.com

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[JCCARGUY]

Excellent suggestions, thank you

[carbuff]

As hard as it may seem for an "old school" guy like me to accept, Internet sales is here and it's not like a fad that will go away like the pet rock, the clapper and the chia pet. But all through my years in the car business, there is one principle that still stand today as it did before...PRICE does not sell cars. If price is the only reason why people buy cars, the Yugo would still be around.

Just as in preparing your weekly ad planner, you need to look at what your competitors are offering customers. Do some comparison shopping and compare the kind of response you get with the kind you're giving. Make two lists, one for things that they do that you liked and another for things that they do that you didn't like then compare them to how your store does things. You'd be amazed at the things that you will learn from doing this. Remember, internet ups and floor ups are the same animal they just went to different schools so you need to use tact in treating the issue of price. How often have we sold a car to a floor up for tissue after 4 hours of grinding us for the price and how easy is it to gross an informed buyer by leveling with him and impressing him with your wealth of knowledge and treating him as an equal. Happens all the time.

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Rico Principe
Internet Sales Manager
Negherbon Auto Center