1. Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.
    Dismiss Notice

I want to hold gross, BUT let's GUT the Pricing?

Discussion in 'CRM, ILM, Chat, Desking, Emails, Phone, SMS' started by derrickwoolfson, May 17, 2018.

This forum sponsored by...
  1. derrickwoolfson

    derrickwoolfson
    Expand Collapse
    Getting Refreshed

    First Name:
    Derrick
    Dealer or Company Name:
    Younger Nissan
    Joined:
    Sep 10, 2014
    Messages:
    74
    Likes Received:
    18
    Location:
    Maryland
    I understand each month's objectives change. But what I do not understand is the complaining of not holding gross when all of the units are gutted? Where they think "not everyone shops online price?" (scratches head) - despite their having inquired online...

    Do you gut all the pricing? I offered that we should have a price leader. Oldest aged new unit per core vehicle. And that having a gutted price leader would build traffic. Allowing us to upsell. As it is much easier to upgrade than downgrade!

    How do you handle pricing?
     
  2. This forum sponsored by...
  3. Rob

    Rob
    Expand Collapse
    Getting Refreshed

    First Name:
    Rob
    Dealer or Company Name:
    Import Dealer
    Twitter Handle:
    malanowski
    Joined:
    Apr 9, 2011
    Messages:
    83
    Likes Received:
    21
    Location:
    San Antonio, Texas Area
    I assume you're talking new car pricing only here. At one of our domestic stores, we price by model (X below invoice across the board), no price leaders. It's simple and it seems to work well.

    At one of our import stores, the competition is wild. We are well below invoice on every new car, and borderline insane on a few price leaders per model. Gross is elusive. We wouldn't price so aggressively if not for the extreme competition. We've tried pulling back, and traffic of every type just dies.
     
  4. Alex Snyder

    Alex Snyder
    Expand Collapse
    President Skroob

    First Name:
    Alex
    Dealer or Company Name:
    DealerRefresh
    Twitter Handle:
    axsnyder
    Joined:
    May 1, 2006
    Messages:
    2,351
    Likes Received:
    700
    Location:
    Vermont
    Buy your cars cheaper :poke::rofl:
     
  5. derrickwoolfson

    derrickwoolfson
    Expand Collapse
    Getting Refreshed

    First Name:
    Derrick
    Dealer or Company Name:
    Younger Nissan
    Joined:
    Sep 10, 2014
    Messages:
    74
    Likes Received:
    18
    Location:
    Maryland
    Correct, this is new only. And yes, Nissan is really having a tough time right now! Pricing rebates less invoice is not doing much. And it does not make sense, either, to price them at a $3k loss when you're only getting up to $600 back for hitting the OEM objective.
     
  6. Rob

    Rob
    Expand Collapse
    Getting Refreshed

    First Name:
    Rob
    Dealer or Company Name:
    Import Dealer
    Twitter Handle:
    malanowski
    Joined:
    Apr 9, 2011
    Messages:
    83
    Likes Received:
    21
    Location:
    San Antonio, Texas Area
    But you're in the fun situation where if you *don't* do multiple thousand below invoice, lead / calls / walk-ins stop. This is a strange, strange business.
     
  7. joe.pistell

    joe.pistell
    Expand Collapse
    Uncle Joe

    First Name:
    Joe
    Dealer or Company Name:
    Dealer.com
    Twitter Handle:
    JoePistell
    Joined:
    Apr 7, 2009
    Messages:
    3,822
    Likes Received:
    1,248
    Location:
    New York
    "Oh those evil car dealers!"

    :egads:BIG ASS ENTERPRIZE SAAS VENDORS TAKE NOTE! Get out of your comfort spot and spend some quality time inside stores. It's a war out there and Dealers bleed a lot.

    p.s. SAAR has just begun to begin its downward cycle. Plus, have you seen used car prices in a free fall? The Dealer bleeding will grow into a river of blood and Dealers will make cuts (many of them will be irrational), taking many weaker vendors with them.
     
    Collapse Signature Expand Signature
    #6 joe.pistell, May 18, 2018
    Last edited: May 18, 2018
    • Like Like x 2
  8. mikesayre

    mikesayre
    Expand Collapse
    Getting Refreshed

    First Name:
    Mike
    Dealer or Company Name:
    Kenwood Dealer Group
    Joined:
    Jul 11, 2009
    Messages:
    54
    Likes Received:
    23
    Location:
    Cincinnati OH
    The continued insanity with new inventory pricing is more of an OEM problem I think, it's an all out brand war. Some OEM's have too many dealers, an inferior product that can't compete (sedans vs. SUVs), and/or an overly aggressive vehicle production schedule. They aren't adjusting strategies, aren't concerned that the majority of their dealers aren't profitable, but are hoping something changes against the laws of reality. That's bad business, and eventually this whole problem will be corrected by Mother capitalism unless some OEM's change their strategies, take charge of their pricing standards, and start caring about their dealer network.
     
    Collapse Signature Expand Signature
    • Like Like x 1
  9. Alex Snyder

    Alex Snyder
    Expand Collapse
    President Skroob

    First Name:
    Alex
    Dealer or Company Name:
    DealerRefresh
    Twitter Handle:
    axsnyder
    Joined:
    May 1, 2006
    Messages:
    2,351
    Likes Received:
    700
    Location:
    Vermont
    Predicting the next recession?
     

Share This Page

This forum sponsored by...