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

LotPop

3rd Base Coach
Sep 25, 2013
41
14
First Name
Jasen
Two very bad pricing strategies below and the second one is worse.

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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
 
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.

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Reactions: Alex Snyder
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.