I am shocked by the responses here. Have we all forgotten how to make gross profit? We have been steadily increasing profit and volume in used cars for the last 3 years. It is about buying and managing your inventory much more than pricing.
Consider the following:
1. My inventory doesn't rotate through the same 30 days at the same time, meaning I have plenty of opportunity to get people in on a number of cars and switch them to others.
2. The majority of people don't actually know the value of used cars. I see people lay down daily to high gross deals simply because it is our internet price.
3. In fact, having a high gross car gives me WAY more negotiating power when the customer is here. How much of a discount can you show on your car with $500 built in compared to my car with $4,500 built in? When people don't know values, this is much more impressive to closing a deal.
4. IT ISN'T ABOUT PRICE! This was my initial comment. Price is irrelevant more often than not. Price is the easiest objection to overcome. Sell the appointment. Make sure they like the car. "Folks, I promise, if you come in and decide you like the car, I am sure we can make you a great deal. Is the today or tomorrow better for you?"
Don't let the shoppers change the way you sell cars! There are more suckers than shoppers - yet we continue to worry about making the deal with the guy that wants the best price. I KNOW I don't have the best price. Let him go down the street to Whore Motors while I spend my time calling people who I can sell a car to.