I like that thought process.@John V. Personally I would take a diff approach instead of simply canceling the product if it's helping you move some cars. I haven't gotten hit yet with a price increase but before that happens I'm gonna cut my spending with them and try to start advertising on all the 3rd party sites a little smarter. With all the forecast of the market slowing down, I think all of us need to evaluate what these sites are bringing to the table and how their pricing is structured. I have our Toyota store on a paid account with Cargurus (175 - 200 car package). We've seen some pretty decent results from the paid package.
This is for Oct.
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Even on the free package we were closing 7 - 8% of the leads that we received. Some months it dropped to 5 - 6% but most months it ran around 7 - 8% on the free package.
The question I keep asking myself is. Do I really need Carguru's to help me sell used Toyota's? 45% of my used inventory is used Toyota's. I interpret that as 45% of the monthly expense that I spend with Cargurus is going towards advertising Same brand makes and models. Can I reduce my inventory size package with Carguru's and only send them the vehicles that I really need help selling?? Ex: Used Mazda, Nissan, Honda or something other than a Same Brand vehicle. Talking with our inventory syndicator, all they said they would need is for the vehicle to be flagged and they would only send the vehicles with a certain flag in the file to Cargurus. It could turn out that I only need to have a 50 car package with Cargurus instead of a 175 - 200 car package.
If I was you, I would find out what the other packages cost and be more selective on the inventory that they are receiving and actually advertising for you. Check your stats in their dashboard and see which cars are actually getting traffic and then set up benchmarks to determine which cars are above your benchmarks and which ones fall below it and then you can determine the actual size package you need. I would also look in GA at the referral traffic they are sending you and see which vehicles people are actually looking at from the referral traffic. It could be that the bulk of your traffic is actually on Off Brand Makes. By taking the selective inventory approach, it would also help you with advertising old age units as well if you wanted to include them in your file to Cargurus.
Just my .02 cent.