Higher gross in less time? Get the “Must Have” new car pricing tool, from Industry Week.
There’s a lot of noise going on about software and tools that promise to do your job for you. As great as that sounds – and as good as inventory technology has become – key challenges remain. For almost every dealer, in fact, perhaps the biggest challenge of all is figuring out how to price cars to stay competitive with the market online, while not giving away your gross in the process. And how to do it hundreds of time over, again and again.
This is where almost every tool in the market falls short. Good inventory is hard to replace, and getting someone in the door on a low price is not always the best strategy to maximize profit. You can’t always make it up on the back-end if you gave it all away to get them in the door. You can avoid this and develop best practices with the right technology that includes the three core but basic “must haves,” below:
Must have balance between competition and profitability.
The key is to be able to price really well to balance for both competitiveness and profitability, and then do it dozens, or even hundreds of times, per day – accurately and compliantly. To do it well, you should factor day’s supply and incentives as well as market conditions for each and every VIN you price. The downside of not doing this well for your entire inventory is fewer leads, less traffic, and lower grosses. If you price too high, or at MSRP, then people won’t engage, and if you price too low, you’ll give away gross profit that you don’t need to lose.