Buying a vehicle is a big-ticket purchase. We’re not talking about hundreds of dollars here. When a potential customer hits your showroom floor or answers to your digital knock, you can be sure that they’re looking for more than just the lowest price. Yes, they will walk if you’re astronomically higher than the last dealership they visited, but the experience means a lot, and if you’re leading with price and that’s all you’ve got, you better know what you’re doing. Here are a few mistakes dealers are making and now you can avoid them thanks to your good friends at Justplayin’.
Dealers love to compare their pricing to everyone else in the business. Every time you turn on the television or radio you hear that dealer X has the lowest prices in the business. Two minutes later dealer Y has the lowest prices in the business. They’ll beat anyone by a certain amount and that’s a guarantee, but the only real guarantee is that the listener doesn’t trust them because it’s impossible for everyone in the business to have the lowest prices. The price wars are getting old, and customers are getting educated. Even if you promise them the lowest price in person, you’re losing their trust from the start and this is a proven fact. The minute you start to talk about the other dealer’s price, the customer is thinking about…the other dealer’s price. You’re drawing attention to the competition. Just offer them your best price and leave the ego out of it.
The power of the number 9. For whatever reason, there’s still power in prices ending in the number nine. In fact, research performed at MIT on women purchasing the exact same clothing at $34, $39 and $44, found that they purchased at the $39 price point in most cases. They wouldn’t go for the lower price. Something to keep in mind when pricing your vehicles.
Where are your price points? Sometimes in life, we need choices to motivate us to make a decision. It’s nice to sit down for a burger and know you can choose the Deluxe with fries or save a few bucks and hold the extras. Well, customers like options when buying a vehicle. Even if they want the same model, having a few packages to choose from, gives them the idea that they have choices and ways to have control over keeping their money in their pockets.
Use your words and numbers wisely. In the end, you have to tell the customer how much they’ll be paying for the vehicle in total, but don’t let them walk without understanding the value and the monthly payment. A good portion of the public doesn’t mind spending their hard earned money, but those that do need to have perceived value and that big-ticket broken down for digestive purposes. If there’s a fee or an interest rate, choose your words around that rate or fee. Studies show that a simple word thrown into the mix can ease the pain for your potential customer. A “small” dealer fee is much better than a dealer fee. I got you “low” interest rate, is much easier on the shopper than this is your interest rate. Choose those words.
What should you take away? Keep your prices simple. Think about ending them with magic number 9. Come up with packages when you can, so your customers have choices. Choose some words to toss into the mix so those fees and rates seem a little more friendly. Don’t compare your prices to the other dealers, because it’s a waste of time. Always check in with Richiebelloblogs.com for everything you want to know auto.