• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Is there really a science behind car pricing?

I'm thinking along the same lines.
There must be more at play here than simply changing the price that little.

Did they also change where the cars were shown? Did they also add new photos? Did the same thing apply to inventory of all ages?
 
I'm not arguing the strategy at all. Just pointing out from the original screenshot, any time you drop the price of a car $1500 you're going to get more exposure. It doesn't matter what the price is.
That big of a drop won't really increase SRPs as much but will increase VDPs... there is a big misperception that pricing increases SRPs and that's not the case (other then Flat pricing), I cover it in this 3 min video, (please check it out tell me if I am wrong)
 
That big of a drop won't really increase SRPs as much but will increase VDPs... there is a big misperception that pricing increases SRPs and that's not the case (other then Flat pricing), I cover it in this 3 min video, (please check it out tell me if I am wrong)


I feel like this video was common sense?
- stock more vehicles
- stock the vehicles people want
- make sure they're all online
- pay extra to the website to get more eyeballs

If you can't figure those out you shouldn't be in the role where you're expected to.
 
Sorry for being negative by the way, I'm not trying to bust your balls over these little points.
I'm glad you've joined the conversation and I hope you'll stick around for more intelligent debate - we can be a tough crowd sometimes :)
 
@LotPop and @Bill Simmons

Pretty hard to argue with that type of spike in exposure. Pretty impressive stats.

Jasen, would you say that this type of increase is typical or is this particular store somewhat of an unusual situation? I guess what I am asking is if that change in pricing strategy was the ONLY thing that changed or if you changed lots of things in addition to pricing strategy.

Why does price make this kind of difference?

It is typical, this is a screen shot of one of our most current clients, they have seen a 31% in SRP spike and a 34% spike in VDPs per car, and as far as results, last month was only the 3 time in their history to get over 100 cars and they are on pace this month to do that too which will be the first time ever to hit 2 months over 100 used cars.
CM9MWcpWgAA6b09.jpg:large
 
I feel like this video was common sense?
- stock more vehicles
- stock the vehicles people want
- make sure they're all online
- pay extra to the website to get more eyeballs

If you can't figure those out you shouldn't be in the role where you're expected to.
Sorry but of the people I survey (at workshops, 20 Groups and webinars) and ask this question, 99% of them get it wrong
"What will get you more search results (SRPs)
1.Better photos
2.Better comments
3.More Competitive Pricing
4.All of these will work
5.None of these will work"
99% of the people say #4 and the video was to prove that it is really #5, those 3 things will not guarantee more SRPs
 
I'm thinking along the same lines.
There must be more at play here than simply changing the price that little.

Did they also change where the cars were shown? Did they also add new photos? Did the same thing apply to inventory of all ages?
That vehicle was
I'm thinking along the same lines.
There must be more at play here than simply changing the price that little.

Did they also change where the cars were shown? Did they also add new photos? Did the same thing apply to inventory of all ages?
Nothing changed on that vehicle other then the price, it was 139 days old, believe me, they had photos on a vehicle that old and photos and comments don't increase search results, they increase VDPs