We originally signed up with CarGurus in January of 2017. In 2018 they hit us with a 19.5% price increase. In 2019 they hit us with another 16% hike of the ol' monthly rate.
Earlier this week I was notified that they are planning to raise our monthly subscription price by 62%. If we don't give in to the 3rd party demands, they will terminate our partnership at the end of the month.
We've faced tactics like this from the 3rd party advertisers before, but what surprised me is:
1. This price increase is coming at a time when most dealer inventories are roughly half the size of what they were at this time last year so the cost per listing is already twice what it used to be.
2. I would think that any proposed increase would at least be similar to or fall in line with the size to previous increases (19.5% and 16%).
3. 62% … A customer walks into a dealership and buys a new GMC Acadia for an outright price of $47,000. The following year the customer totals out their Acadia and returns to the dealership to discover that GM jacked up prices so high that an equally equipped Acadia is now going to cost $76,140 after rebates and dealer discounts? Does the customer buy the 2nd Acadia or does the customer just leave the dealership and go elsewhere. Is there really a choice involved when there's a 62% price increase?
Just wanted to put this out there because if they're doing this to the dealership I work for, then they'll likely be coming for your dealership soon as well.
Earlier this week I was notified that they are planning to raise our monthly subscription price by 62%. If we don't give in to the 3rd party demands, they will terminate our partnership at the end of the month.
We've faced tactics like this from the 3rd party advertisers before, but what surprised me is:
1. This price increase is coming at a time when most dealer inventories are roughly half the size of what they were at this time last year so the cost per listing is already twice what it used to be.
2. I would think that any proposed increase would at least be similar to or fall in line with the size to previous increases (19.5% and 16%).
3. 62% … A customer walks into a dealership and buys a new GMC Acadia for an outright price of $47,000. The following year the customer totals out their Acadia and returns to the dealership to discover that GM jacked up prices so high that an equally equipped Acadia is now going to cost $76,140 after rebates and dealer discounts? Does the customer buy the 2nd Acadia or does the customer just leave the dealership and go elsewhere. Is there really a choice involved when there's a 62% price increase?
Just wanted to put this out there because if they're doing this to the dealership I work for, then they'll likely be coming for your dealership soon as well.