New Car Internet Pricing
Todd Dearborn
Vice PresidentCarsDirect
Pg. 47
The Price Is Right?
Strategies for Setting Optimal Online Prices
About Us
• Todd DearbornVice President, Automotive Internet Brands/CarsDirect
• Carmine RossiRegional Sales Manager Internet Brands/CarsDirect
Agenda
• Evolution of the Online Customer
• Pricing: Why Customers Don’t Buy
• Knowing Lead Sources
• What To Change
Why Customers Don’t Buy
1. No Contact
2. Still Looking
3. Pricing4. Wants Different Make
5. Didn’t Have the Car
Knowing Lead Sources
Knowing Lead Sources
MSRP $23,540Invoice $22,290CarsDirect Price $21,790
Destination Charge:Included (National + regional)
Ad Fees:Included
Incentives:Included (Special Pricing)
Knowing Lead Sources
MSRP $23,475Invoice $21,548True Market Value $20,884
Destination Charge:Incomplete (National only)
Ad Fees:Not Included
Incentives:Not Included
Knowing Lead Sources
MSRP $23,440Invoice $21,513Fair Purchase Price $22,038
Destination Charge:Incomplete (National only)
Ad Fees:Not Included
Incentives:Available (Special APR)
Knowing Lead Sources
MSRP $23,520Invoice $22,287Average Paid $22,024TrueCar Price Estimate $20,057
Destination Charge:Incomplete (National only)
Ad Fees:Included
Incentives:Available (Special APR, Grad, etc.)
Knowing Lead Sources
• Pricing Factors
How are incentives handled?
What about doc fees / “dealer fees”?
How does their configurator work?
What about stair-step money?
Knowing Lead Sources
• Pricing Factors
What is your competition doing?
Does the local dealer have input?
Was the lead organic?
Do they price from Sticker or Invoice?
What To Change
• Give a price on the phone/email/chat
• Talk to source about input on local market price
• Look at the lead and what it came with
• Fit into the customer’s process
What To Change
• Dealer trades – quote these too!
• Use C/S Notes
• Sell back end – Loan/Lease, Service Contract, GAP, LoJack
Customer Notes
The Dealer Synergy 4 “Ps”
ProductsGive pricing! Quote aftermarket products prior to visit
PeopleTrain them!
Process Fit into the customer’s buying process
PromotionsFactor it into the quoteRemind customers of qualifiers
Questions?