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CHICAGO (May 26, 2006) A recent cars.com survey discovered that a used vehicle with a stale price is not likely to sell quite as well as one where the price is continually updated. Nearly 50 percent of participating dealers reported that constantly updating vehicle prices as inventory ages provides the best online approach for driving quality traffic to the dealership. "Given the fierce competition they face online, dealers understand that they have to take a more proactive approach in merchandising their vehicles," explained Ralph Ebersole, director of dealer training for cars.com. "Ensuring that pricing stays consistent with market conditions assures customers they're getting the value they expect and helps dealers keep their inventory moving." Reviewing other successful strategies, the study found that almost an equal number of dealers indicated that being competitive (28 percent) or offering the lowest price (20 percent) proved to be the most effective in driving quality traffic. Only 5 percent of study participants recommended using a formula to draw customers, such as a set percentage more or less than invoice. "Shoppers associate substantially lower price with problems and perceive a notably higher price as an indication that they won't get a fair deal," Ebersole pointed out. "It's important to remember that every vehicle is distinct and that pricing should reflect the vehicle's distinguishing features. "Rather than simply offering the lowest price or using a strict formula that doesn't factor in competitors' pricing, savvy dealers determine an appropriate price by taking into account the vehicle's unique options, condition and mileage," he concluded. |
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