Flat Pricing (on vehicle listing sites) and two very bad pricing strategies

[LotPop]

Two very bad pricing strategies below and the second one is worse.



By pricing the F-150 at $50,200 you are missing shoppers searching for a "truck" or F-150 for under $50,000 for $200 and on the Edge, that dealer is missing shoppers shopping for an "SUV" or an Edge under $35,000 for JUST $62. Price at $50,000 or $35,000 to grab the $50k and higher shopper along with the $50K and lower shoppers.

I did an article in 2011 in Digital Dealer covering what I called "Flat Pricing" and in the comments I included a workshop I did covering this strategy.

If you would like to schedule a time to discuss best practices, here is a link to my calendar, pick a day and time that works for you and it will set up a zoom meeting https://calendly.com/lotpop/30min

 

[LotPop]

Pricing cars at $25,000 instead of $24,995 pulls in both the shopper looking $25k and higher and the shopper looking $25k and less.

Even a car priced at $22,000 works great, see the last pic of the Ford Edge, that price point works because of the payment shopper.

The $22,000 price point is that $400 a month payment buyer.

 

[Jeff Kershner]

Jasen @LotPop - you've been pushing for dealers to consider this pricing strategy for how many years now? As long as I can remember.

Anymore success stories or strategies you can add to this?

 

[flosho]

We've always priced our vehicles below major price points.

vAuto pricing software shows up to demo what our optimal pricing should be and will change prices from 19950 to 20193. That's $243, average something like that out over 50 cars and now we have $12,150 "left on the table". This lost gross helps pay for the $2000 a month for the pricing tool. That's the theory at least.