Prices on website... yes or no?

[Robert DeForge]

Harleyguy, my stance on this topic has always been pretty firm. Think about it from a customer's perspective, "if there's no price listed, then they probably charge too much". My suggestion on that is to competitively shop your fellow dealers to see where they are pricing their vehicles at. That way you can see what is a fair price for your customer and when you talk to them on the phone, you can tell them that you know you have a competitive price because you know what your competitors are pricing their vehicles at.

The assumption you make in this though, is that they will call and contact you. You have provided so much information to the customer, what is there reason to contact you at this point? More than likely they would walk in to the showroom if this vehicle they viewed online meets their option and pricing expectations. In the statement above, you are basing a customers response soley on price alone, that will drive the traffic to your store. Here runs the danger....I will just lower my price of a vehicle to place me in a better position then other dealers (the V-Auto model), and thus lower your gross.

it is true that the customers will feel that if there is no pricing, the dealer is 'playing' with the numbers....this business set that up years ago in the consumers minds. At this point in the business, you put the pricing on the vehicles, and try some other type of marketing....beyond the price....to get the contact. What sets you apart from dealer B-C-D etc.......if you look at it...for the most part, they all look the same. What drives the contact to your store?

 

[WillMcG32]

What drives the contact to your store?

Robert,

I understand where you are coming from. But I feel as though you've replaced "Get em in" with the above quote. Every car is different...unique even. However, Consumers are looking at dozens of those snowflakes. Sure, without prices, you may get that contact and based on your skills you may even get them in. However, think about the opportunities you're missing with the 97% that don't typically call or email. There are way too many choices out there for consumers. Just my 2 cents.

Full disclosure: As you can see, I work for vAuto and even if I didn't I'm a firm believer in the Velocity method. When you take the emotion out of it (Wal-mart style as Joe mentioned) and focus on maximizing your turn and gross, everything else improves as well. (Service Dept. being one of the beneficiaries.)

 

[Mitch Gallant]

I found this page on a competitors website calling themselves out on why there's no price: http://ow.ly/oz0Pa

I truly hope they continue to do this for YEARS!

 

[Robert DeForge]

I found this page on a competitors website calling themselves out on why there's no price: Where are the Prices? | Regina | Moose Jaw | Weyburn | Estevan | Yorkton | Swift Current | Lasalle| Saskatchewan | Bennett Dunlop Ford

I truly hope they continue to do this for YEARS!

Notice that chat window that scrolls across the pre-owned page which does not have the pricing. A chat window does not scare the consumer, so I bet they get a number of 'chats' that ask why there is no price. They have established a contact.....it is now how you handle that contact. I would guess (just a guess), that a similar page with pricing, and a chat window that scrolls across, the non-pricing page will obtain more contacts then the pricing page. With no price, they need to make that quick contact to make sure they are not missing out on a deal. Sure...some will 'run' because of no pricing, but I bet more contact on the chat window, and more 'run' when they have the pricing. They see the price, gather all of the info, and move on to look at the next dealers pricing. It is possible this is happening. Kudos to them for trying something different. If they get to much pushback, you simply add the pricing and look and sound like every other dealer out there...nothing hurt. I am sure they look at their metrics/contacts and will make a change if need be. It is all interesting to me. I still think a hybrid approach may be the best. Cars 30-days and over price, and your fresh trades under 30-days, have a contact for price.

 

[Jason]

I found this page on a competitors website calling themselves out on why there's no price: Where are the Prices? | Regina | Moose Jaw | Weyburn | Estevan | Yorkton | Swift Current | Lasalle| Saskatchewan | Bennett Dunlop Ford

I truly hope they continue to do this for YEARS!

This made me LOL. Thanks for sharing Mitch

"if you’re looking for the cheapest vehicle you can find, you might not want one of ours."

 

[Mitch Gallant]

Sure...some will 'run' because of no pricing.

Robert, I like your analysis and I appreciate the way you think about it. The problem is that in this scenario you're starting from a place of low trust. Marketing for car dealers is void when the trust currency is low. I don't think the statement should be "some will run", the statement should be "how few won't run". Customers on a dealer site are considering buying a car, why would you curtain any answers to their questions, the goal should be a frictionless path to your showroom.

This tactic is simply trying to polish a turd in my opinion.

 

[Robert DeForge]

Robert, I like your analysis and I appreciate the way you think about it. The problem is that in this scenario you're starting from a place of low trust. Marketing for car dealers is void when the trust currency is low. I don't think the statement should be "some will run", the statement should be "how few won't run". Customers on a dealer site are considering buying a car, why would you curtain any answers to their questions, the goal should be a frictionless path to your showroom.

This tactic is simply trying to polish a turd in my opinion.

I always like to give my stand, in that I believe the pricing has to be there. Sometimes I just do not like stepping into the same crowded box as everyone else. The other dealer you have mentioned, I can apprieciate what they are doing, and how they try to communicate it to their customers. I like the look of their website, and it does not make me uncomfortable in how they describe their process, but I am coming from a different spot than the consumer. They do have to take the time to explain themselves. In one of their Facebook posts, they have a conversation with a customer who was wondering why they did not display price....they best part of that is they were having a conversation. If it does not work out for them, it is easy to go back to the 'way' everyone else does it. You are so correct in this business starting from the low trust point....the big reason without the pricing on the vehicles it scares folks. Just looking outside the bubble though, how many run from the dealership without ever a contact, as they have received all of the information they need from dealer. There is the chicken vs the egg argument. How does the other dealership and yours compare in the sales market, as I believe you were both from the same market...just curious if they are similar size? I see the other dealer works on a 'no commission sales' which gives a level of confidence to a customer as well....they stretch both ends with no commision sales and no pricing listed They are playing outside of the box a bit

 

[joe.pistell]

Wow, what a cool idea! I think Best Buy should drop all their prices on their site too! Their gross profit margins would explode! But... for some reason, sales volume would fall

Sarcasm aside, what happens if they "Pull Prices from BestBuy.com"? It simply means very few shoppers would ever go back to BestBuy.com. That's the metric that takes the greatest hit. Less Return visitors.

The next casualty is Time on Site and V.D.P.s viewed. Dealers give their shoppers too much credit for knowing what they want to buy. Product discovery includes price. All they want is to get the best car that fits into their budget. Removing price makes the site useless. So, why have inventory on the site? Why have pages on the site? What the hell, just upload a scan of a business card for a home page, cuz that all them pesky shoppers need!

Dealers incorrectly think shoppers are totally zeroed in on a specific yr/make/model/trim/pkg/color and they're out looking for blood. The majority of shoppers are damn confused when they arrive at their site.

Removing prices simply means forcing the shopper to go to their competitors site and if I am their competitor, I am going to BASH them for "hiding their prices" accuse them of abusing female shoppers than HATE to negotiate and preying on grandma's that don't shop on the internet and don't have family to help them.

 

[Alex Snyder]

Removing prices simply means forcing the shopper to go to their competitors site and if I am their competitor, I am going to BASH them for "hiding their prices" accuse them of abusing female shoppers than HATE to negotiate and preying on grandma's that don't shop on the internet and don't have family to help them.

no price = no trust from the consumer that turns into very negative perceptions of your business

I'll be so bold to say that without prices, you only win when:

- you're physically close enough to the consumer
- have a strong positive reputation locally
- practice the same tactics as the rest of the marketplace ....what I like to call the "rule of equal incompetence"
- have an incredible blow up gorilla

Some day it will be more acceptable and convenient for consumers to not feel compelled to buy a car locally. That is the day any dealer wishing to stay in business will have to price his cars competitively for all to see everywhere.

 

[Jeff Kershner]

LAST THOUGHT: I joined the DealerRefresh Forums in April of 2009, just 2 months after the Like button debuted! This post is incomplete without a HUGE nod to Jeff and Alex for their ability to see into the future and create this thriving community. It's pretty incredible when you think about it.

Thanks for the shout Ryan!! The community wouldn't be what it is without you and our regular community contributors and article writers over on the blog.