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Merchandising thoughts from a customer

You guys hit me right in the feels with this one.

All I do is unicorn hunt. Between poor optioning practices, garbage pictures, bad listings, and 3rd parties who can't translate the options properly, the only reliable way I've found is to throw every VIN into Manroney Labels. Toss in 'invisible' options like Joe mentioned above (even more prevalent on EVs) and expert unicorn hunters like myself don't have a shot. I can't even imagine how big of a nightmare this is for the average consumer trying to find a vehicle with a particular option who doesn't have the same tools I do at their disposal.

Yet here I am buying for sales managers who said 'options don't command more money for cars, only help them sell faster' ..... :egads:
 
Yet here I am buying for sales managers who said 'options don't command more money for cars, only help them sell faster' ..... :egads:
They're right to some degree when it comes to options on used cars like adaptive cruise or massaging seats. The unicorn buyers (like me) will hunt and low for these features and be willing to pay more, but to the average buyer they either shrug or view it as something nice to have, but not worth paying more for.
 
to the average buyer they either shrug or view it as something nice to have, but not worth paying more for.
There is one ass that's going to buy one VIN.
Velocity uses PRICE to sell that VIN. AML uses merchandising as a weapon to take share.

Look at this hot mess. This is my competition :)
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Listed 64 days ago. $1,865 price reduction so far!
 
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C'mon @ryan.leslie - that truck clearly has a manual- it's in the glovebox!
*Rim Shot*

@BrianEpro everyone!

For more of Brian's unique brand of humor, visit your local Senior Living facility and ask to speak with any of the Dads who tell jokes.

Brian can be found most evenings under a Miata or a vintage Saab muttering to himself about "The Good Ole Days" and spending just a little too long sniffing the gear oils and brake cleaner.

Don't forget to tip your waitress.
 
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I totally get that businesses need to churn product. I grew up were the product was valued at a square foot and many times end on your foot or your butt. Another part of the family business was per gallon and used to be delivered to your door and the now out dated joke is probably only understood by us older folks.

Product needs to move.

But we no longer get milk delivered to our door and people are questioning if those ads were just to sell milk.

The shopper is evolving.

The internet started the change on how many brick and mortar stay in business.
Covid opened the shopper up to a whole new experience that they didn't trust.

Carvana - shop online and get your car hassle free.
This particular business targeted an emotion that for a quite a few shoppers picked up on.

The other day CarFax was discussed. So from my understanding 120,000 mile car with 3 owners and 1 accident shouldn't be scary.
Why do car shoppers go to an OEM over an independent?

it's perceived value.
An OEM should have better cars because pre-covid the bad cars were shipped out.

It may seem that I'm rambling but there is a method to this madness.

I went to a Toyota Dealer in Cedar Park. I really enjoyed the experience. Nothing like getting barista made coffee and comfy chairs to sit.
While the place I bought my last 3 cars was barren. The chairs are probably from Walmart. Sales people have to pay for their cokes.

I almost bought my second car at Cedar Park Toyota. My bad for walking away instead of jumping on the deal. But in a way it worked out for since I picked up a R/T manual Challenger with some tweeks from my sales person.

I have been in lots of dealerships across the US and in Japan. I still haven't found the experience I had in Japan.

But the Toyota place nailed it on making you feel comfortable, the sales pitch was low key, they tried to tell you how long you have to wait. The coffee was good. Not some crappy pod BS that gives you ulcers.

The sales person at the walmart chair place?
He steered me away from a few vehicles. He was like, "pass on that one". He didn't get a sale those days.
When I was sitting through the process, I told him I was hungry and needed a break. He keyed me in a great burger place and he texted me when I should come back. This last time, I went home and told him to hook me up the next day.
He got 3 sales out of me and I'll likely hit him up and drive back to Austin for another one which is almost 3 hours away.

The places that get me right away into the CRM?
I get turned off, real quick. Nobody asks me if I want to be part of their advertising campaigns. email = money. I know this.
Places that make me sit while they have to get the numbers while we are going over the price and who focus on the payment. I end up walking because I ask for the price of the car. I don't want to know that my payments will go down if I do 96 payments.
Some places feel like you are flying economy on Spirit.

Pushing inventory doesn't mean that you can't give your shopper a decent experience.

Back to Carvana. Why was carvana even an option? Isn't kicking the wheels and test drive very important? Or was it that people would rather wait for an email saying their purchase has been processed and here's the passcode to get your car in the elevator. Austin hipsters probably just did it for the social media posting experience.

Here's another thing that will push more people to shopping online.
These no haggle dealerships.
IF you can't haggle, then why not just trade your car in online and get your new one delivered to your house?

Personally, I like supporting local businesses and still go to Barnes and Nobles. But the allure of online shopping is so attractive.

If my guy in Austin retires, I don't know if I have the patience anymore to go to 15-25 dealers looking for a sales person like him. Maybe it will be the cafe lattes that will win me over instead. But that carfax thread has got me thinking too.
 
An idea I had that was born from this post and previous conversations with @joe.pistell. Our dealership prides itself on reconditioning and it's something I've come to realize that we don't sell enough. I reached out to Motive and they are creating a new section for me on my VDP where I can list reconditioning items just like this feature section. We will be inserting it in the comments as well.
 

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An idea I had that was born from this post and previous conversations with @joe.pistell. Our dealership prides itself on reconditioning and it's something I've come to realize that we don't sell enough.

Retailing is a war, a zero sum game.
Internet shopper's look at 60+ VINs, but only one dealer wins the sale.
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Merchandising (done right) is highly strategic.

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Merchandising (done right) differentiates the Dealer and the VIN.

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F*ck price drops as 'THE only tool to turn iron'.
Industry wide, all VDP's suck. Merchandising (done right) exploits this weaknesses.

I am a retailer, a merchant that loves the -game- called automotive retail.
Merchandising (done right) is an ad spend multiplier.
 
They're right to some degree when it comes to options on used cars like adaptive cruise or massaging seats. The unicorn buyers (like me) will hunt and low for these features and be willing to pay more, but to the average buyer they either shrug or view it as something nice to have, but not worth paying more for.
When turn is all that matters, sure I'll bite. But when you're day-one pricing a desirable featured vehicle similarly to a base spec, all you're doing is shooting yourself in the foot. You can always mark down, harder to mark up (though we've seen some success doing this - creating urgency).

Carmax has built an empire on getting more out of cars with better/rare features. Masters of merchandising and pricing.