We recently started using HomeNet to poll from our DMS. I have it set up so that it does not export the vehicles until I upload the photos and have added any after-market or Dealer Installed options (all photos get done the same day the car goes on our lot). I found this to be the best way because it sometimes takes third party vendors more than 24 hours to update an existing vehicle. Also, this way our sales reps are aware of the vehicle and have all the information at thier fingertips.

would also like to hear from some atc and cars reps on this as well!

Jeff...fantastic job man...keep it up.

A common mistake that most bloggers do is that they tend to become too preachy and too technical. Let the blog be the forum to allow ideas and concepts flourish from the readers and to let the true picture emerge.

My number one reason, at least for professional blogs I read, is to learn new ideas and concepts. It is great when bloggers seem to find stuff you never thought of or who have thought provoking ideas and ways of thinking.

The reason I visit DR is because I know I'll sometimes learn something new, learning has to be there.

Jeff does not alienate the readers. He does not make them feel like he is the great guru and the readers are his disciples. He involves his readers as much as possible in the blog discussion. He invites their opinions and suggestions, and keeps an option for them to voice their problems as well. This makes the blog more interesting. I like bloggers who try to encourage community by allowing comments and who also take the time to respond sometimes in a hotly debating manner. There are times when special interest groups or people dominate the forum however Jeff seems to monitor this well.

Some blogs exist to entertain, others to educate, others to advocate, with out the top down information flow and the paid advertisers who mask promoting their products and services in magazines and news media. We sometimes see where there are “special interests” motives behind some of the comments however the truth usually comes out in the debate and it is plain to see for most.

Thank you Jeff for creating a blog involving such an industry as ours that really needs to have forums like this to bring the change needed to allow it to improve and be succesful.

Great work Jeff!
Joe I have been hearing about that new site, can't wait to check it out!

Happy Birthday DR! Jeff has got to be a proud parent - thanks for keeping up the hard work.

I am a new member and I must say that over that last few months I have acquired more usable knowledge from this one site, than I did in a year on all the other sites out there COMBINED!
Jeff you are the man.
Awesome job.

Alex Jefferson/Direct Marketing Manager/eCommerce Director/Proctor Automotive Group

Congrats to JK and ALSO to our growing community!

Welcome aboard newbies! And remember, there are no dumb questions... er... unless, it comes from Brian T in Etown! We all know he's wacked! hahahaha.

Congrats again JK!
Joe

Dealer Refresh is in the top 3 sites I review every morning! Always great info, and I still use this site as a resource (by going through the archives) when I am completing my due diligence on new vendors and new ideas. Many thanks to Jeff, Alex, and ALL who participate here, as this site is great because of everyone that contributes. Cheers! Kevin Frye/eCommerce Director/Jeff Wyler Automotive Family

Jeff -

Congratulations on your efforts; you've created a much-needed haven for those in the business who are looking to "get it."

Don't change a thing...except maybe more pics of the woman at the trade show booths.

Great work.

Eric

DR has come along way in 3 years. I can't remember when I first found the site but it has to be at least 2 years ago when I was looking for a book by Edward Colemen. Been a regular ever since. Great content. Great dialogue. Great site! Congrats Jeff!

Jeff,

Awesome site! I found your site a few days ago and am really impressed at the amount of useful information that you have compiled. I just wish I had found it sooner!

Keep up the awesome work!
Tommy Justice

Good job Jeff. I remember those early days when you would post to the sounds of crickets - only getting 1 or 2 comments. You deserve to feel a sense of pride.

Jeff, congrats on 3 years!

Do not lower the new car inventory price on the site. Special pricing is for internet customers only. If a customer does not submit a lead, they are not an internet customer. To avoid the problems of having a high gross customer go home and see the car for less money simply do not advertise it on the site. There are many other tools that you can use to get the customer in the door. Start by generating a lead and giving them what they want before trying to get what you need. This is the only real solution.

Acura does not allow us to list prices below MSRP on any advertising platform, which includes our website and get this, email blasts. In addition, we cannot even offer $500 accessory credit, since this will decrease the MSRP by set $500 according to Acura. No freebies or add-ons unless you add the additional cost of the freebies to the MSRP of the vehicle.

So we have a coupon on our website (pop-up and under) that says:
"Internet Savings Certificate". It is a big converter on our website as it converts more customers then any other form. Last month for example half of our leads (new and used cars - not looking at service/parts etc) came from this coupon. We also sell a lot of cars of it.

The great thing about this pop-up is that it is essentially an iframe and not a true pop-up, so having your pop-up blocker turned on will not stop it from showing. Check out my website for ideas.

Now back to Special Internet Pricing. I think you should never give someone what they want without giving you what you want - you want their contact info! When you have that, you have to give the customer what they want. They want a price, give them a price, because if you do not, they will not be happy. Acura rates our Internet response based on the information we put in our first two emails:
- do we cross sell
- do give a price
- do we mention special offers
- do we brand our dealer
- do we sell the product (awards etc)
- response time

I would tell your GM that you gotta give the customer what they want when they inquire. Now I do not worry about a showroom customer shopping the same day to see whether he can get it cheaper on the internet, because if you have a good crm, your price quote does not go out automatically if it is a customer that has already been in. In addition, if you do not give them what they want, your competitor down the street will give them that Special Internet Price.....and guess what? You just lost a sale!

Great Question, endless dilemma, read this:

Maintaining optimal pricing manually is a losing battle. Cars are
volatile commodities. Supply & demand are never constant.

Dilemma 1: If you don’t display prices you might not get any inquiries. If you do show prices then they better be interesting, otherwise you certainly won’t get any response. Catch 22! If you are always forced to open negotiations at your lowest, least profitable price, then how can you ever score a home-run?

Dilemma 2: Pitching “No haggle low prices” sounds tempting to some, but how can one price fit all? Every buyer is not the same. Each has their own unique set of circumstances, priorities, and values; so a fair price for one may not be fair enough for another. What about the less demanding buyers who may have been willing to pay you more!

‘So, - either you lose deals because your price is too high, or you end up leaving money on the table, because your price is too low. Either way, you lose!

How about trying to set aside everything you ever learned about pricing, - just for a moment. Open your mind, step back and watch how two trillion dollars worth of securities get sold every day with no fuss; and always at the best price the market can bear.

Brian Ferris
DealMaker.com
'matching supply & demand'

I will stop now as you have this very convaluted, as I did not write :
"but as soon as I discover what they are doing I refuse to assist them, and advise them this is unethical and refer them back to their original salesperson.") Chris said that qoute: Have a great day

Frank,

I'd be happy to clarify those two statements since they were each written with a different context as they relate to the overall purchase process...

Price, payment, and getting financed are the 3 top objections for me. Their ugly heads pop up during different stages of road to sell:

PRICE:
This battle happens before the customer enters my funnel. Customers are making decisions about whether or not they want to engage your dealership based on your displayed (or undisclosed) price. Who knows how many we gain or lose by showing or not showing a certain price. I display "List" prices and remind everyone that nobody pays the "List" price. Again, I should remind you that my market is mostly Special Finance. But most of my customers (including my prime buyers) know they don't pay "List". They want to haggle a little.

FINANCING:
I fight this battle over the phone mostly. Special finance customers want to be reassured that their time will not be wasted..again.

PAYMENT:
After winning the first two battles and getting them to show, Mr. What's My Payment shows up during the negotiations. I'm not fighting the payment fight over the phone. Mr. Price Objection may show up again, but is easier to overcome because you can shift focus to other areas of deal, like payment.

I do think your dealership's pay plan may be adversely influencing your sales process and having you do things that put up road blocks on the road to sell. (i.e. you wrote: "but as soon as I discover what they are doing I refuse to assist them, and advise them this is unethical and refer them back to their original salesperson.")

This is why I do not prefer seperate Internet departments. They seem to cause more problems then they solve. Every salesperson should be in the Internet Department.

Wayne wrote

Several of you have different opinions about pricing, and you all may be correct. There is not a single pricing strategy that works in all situations/markets.

I know firsthand that pricing strategies work different in the Special Finance Markets (a rapidly growing market BTW). These folks are more concerned about obtaining financing. Price is not their top concern, at first. Payment is more important than price in this market.

Also, are you a volume store or high gross store? Many will say, "we want both." But having it both ways is not realistic.

We prefer high gross - you can always come down in price to scoop up the prime, but you can't go up.

Then you wrote the above: you have me a little confused Wayne, Take a look at both statements they are very conflicting to say the least.

Frank,

From my experience & market, payment matters the most once the customer is in the showroom & negotiating. I agree 100%, showroom sales systems used 25 years ago still work today, but the customer has to be in the showroom.

Until we get to that point, we have to go use, as Jeff puts it, 'new marketing'.

Hello Wayne

I agree: Yes they do want to haggel, but we still need to give people a reason to shop the internet and if I can keep my gross on my internet price I sure want to do just that. You know the old term " if I could would you" still works just as good today as it did 25 years ago, and looking someone in the eye and letting them know our internet price is the best available still works also, but let me ask you does price really matter? Or is payment?

@Frank:

you wrote:
"Because internet prices are "no haggle" prices."

I, personally, stay away from claiming 'no haggle' anymore. I want to give the customer 'hope for gain'.

No haggle was good back in the early to mid 90's with Saturn because the customer was at an information disadvantage.

Definitely not anymore. Now everyone is armed with vehicle information and feeling a little dangerous...

I believe the majority of people want to haggle a little and view 'no haggle' as another way for the dealer to control the customer. I could be wrong and welcome input from others, but I hear hundreds of phone calls a month and can hear it in their voices.

Overall, the customer's confidence is up. They are not as afraid of being taken...and they know if your 'no haggle' price is a good deal or not.

Besides, with the current economic climate, people are fighting more for any kind of discount they can get. You bet some want to haggle.

Chris I do agree with you when it comes to price as you hit it right on the head. Why deal with internet when I can get the same deal by walking in? Because internet prices are "no haggle" prices. That is why there is an Internet shopper. There are many kinds of shoppers, everyone is unique. It is not just black and white.