Cars.com Wants to Increase Prices

[carmart.mustafa]

Hi everyone,

We have been using cars.com for a year. $1500 per month. Now, they say that because we have over 75+ cars, they want to increase to $2044. If I want to stay at the same package, it will cost $1799 now. %20 increasement for no reason. Reps says it is because our cost per lead is $5, and other dealerships are $40.

What I understand is because my cars are great, I am getting punished.

Is there anyone else have the same thing?

 

[joe.pistell]

What I understand is because my cars are great, I am getting punished.

Cars has adopted the CarGurus plan. Flex pricing based on your performance.

 

[carmart.mustafa]

this is ridiculous isn't it? I mean they don't success, just because my car and photos better, maybe people click my cars?

 

[joe.pistell]

this is ridiculous isn't it? I mean they don't success, just because my car and photos better, maybe people click my cars?

Their day in the inferno of disruption is coming.

 

[Jeff Kershner]

That's the market. You decide with your dollars to whether or not you want to participate. If the returns no longer pencil out in your favor then maybe it's time to cancel.

 

[joe.pistell]

they say that because we have over 75+ cars, they want to increase to $2044. If I want to stay at the same package, it will cost $1799 now. %20 increasement for no reason

Did your inventory count go up?

p.s. reshoot this bad boy

https://www.carmartpreowned.com/inventory/ford/escape/cm-a37369/

 

[Dan Sayer]

Hi everyone,

We have been using cars.com for a year. $1500 per month. Now, they say that because we have over 75+ cars, they want to increase to $2044. If I want to stay at the same package, it will cost $1799 now. %20 increasement for no reason. Reps says it is because our cost per lead is $5, and other dealerships are $40.

What I understand is because my cars are great, I am getting punished.

Is there anyone else have the same thing?

We have since cancelled Cars, which kinda killed me a bit because I had the best relationship and most consistent performance with them over all others up till a couple years ago.

I have an exercise I used to do with them every price increase they proposed and I was typically successful in the logic. @carmart.mustafa what was your total Cars VDP count in April, May, and June at the $1,500 rate?

 

[KennySmithAutoUnite]

I would push back on that.

Cars.com can be a good source, but I would not let them justify an increase just because your cost per lead is low.

If your CPL is $5, that usually means your cars are priced right, your photos are good, your inventory is desirable, and your team is handling the opportunities. That is not automatically a reason for the vendor to raise your bill.

I would ask them for the full breakdown:

VDP views
SRP views
Calls
Emails
Chats
Appointments
Shows
Sold units
Cost per sold
Lead quality
Duplicate leads
What package you are on now
What changes at 75-plus cars
What extra value you get for the higher price

Cost per lead alone does not tell the whole story.

If the increase is because you crossed an inventory count or package tier, I would ask them to show that clearly in writing. If the increase is because your results are good, I would negotiate hard.

I would not cancel right away if it is working, but I would not accept a random increase either.

If they want more money, they need to show more value than “your CPL is better than other dealers.”

 

[Dan Sayer]

I would push back on that.

Cars.com can be a good source, but I would not let them justify an increase just because your cost per lead is low.

If your CPL is $5, that usually means your cars are priced right, your photos are good, your inventory is desirable, and your team is handling the opportunities. That is not automatically a reason for the vendor to raise your bill.

I would ask them for the full breakdown:

VDP views
SRP views
Calls
Emails
Chats
Appointments
Shows
Sold units
Cost per sold
Lead quality
Duplicate leads
What package you are on now
What changes at 75-plus cars
What extra value you get for the higher price

Cost per lead alone does not tell the whole story.

If the increase is because you crossed an inventory count or package tier, I would ask them to show that clearly in writing. If the increase is because your results are good, I would negotiate hard.

I would not cancel right away if it is working, but I would not accept a random increase either.

If they want more money, they need to show more value than “your CPL is better than other dealers.”

Don't forget Site Referrals... @carmart.mustafa shoot me a DM and I can walk you through a couple of things.

 

[Richard_Lloyd]

Can you manually selcect the vehicles you send them to keep the feed under that 75 unit threshold?