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Todd Dearborn "New Car Internet Pricing"

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Sean Bradley
Sean Bradley

The document discusses strategies for setting optimal online car prices. It covers how customers don't buy for various reasons like pricing, and the importance of knowing a lead's source. Specific pricing factors are examined, such as how incentives, fees, and the local dealer are handled. The presentation recommends giving prices upfront, fitting the local market, using customer/lead notes, and selling additional products to improve conversions. It stresses training employees on the various online "4 Ps" of products, people, process, and promotions.

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Pg. 47 New Car Internet Pricing Todd Dearborn Vice President CarsDirect
The Price Is Right? Strategies for Setting Optimal Online Prices
About Us • Todd Dearborn • Carmine Rossi Vice President, Automotive Regional Sales Manager Internet Internet Brands/CarsDirect 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. Pricing 4. Wants Different Make 5. Didn’t Have the Car
Knowing Lead Sources
Knowing Lead Sources MSRP $23,540 Invoice $22,290 CarsDirect Price $21,790 Destination Charge: Included (National + regional) Ad Fees: Included Incentives: Included (Special Pricing)
Knowing Lead Sources MSRP $23,475 Invoice $21,548 True Market Value $20,884 Destination Charge: Incomplete (National only) Ad Fees: Not Included Incentives: Not Included
Knowing Lead Sources MSRP $23,440 Invoice $21,513 Fair Purchase Price $22,038 Destination Charge: Incomplete (National only) Ad Fees: Not Included Incentives: Available (Special APR)
Knowing Lead Sources MSRP $23,520 Invoice $22,287 Average Paid $22,024 TrueCar 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” Products Give pricing! Quote aftermarket products prior to visit People Train them! Process Fit into the customer’s buying process Promotions Factor it into the quote Remind customers of qualifiers
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Todd Dearborn "New Car Internet Pricing"

  • 1. Pg. 47 New Car Internet Pricing Todd Dearborn Vice President CarsDirect
  • 2. The Price Is Right? Strategies for Setting Optimal Online Prices
  • 3. About Us • Todd Dearborn • Carmine Rossi Vice President, Automotive Regional Sales Manager Internet Internet Brands/CarsDirect Brands/CarsDirect
  • 4. Agenda • Evolution of the Online Customer • Pricing: Why Customers Don’t Buy • Knowing Lead Sources • What To Change
  • 5. Why Customers Don’t Buy 1. No Contact 2. Still Looking 3. Pricing 4. Wants Different Make 5. Didn’t Have the Car
  • 7. Knowing Lead Sources MSRP $23,540 Invoice $22,290 CarsDirect Price $21,790 Destination Charge: Included (National + regional) Ad Fees: Included Incentives: Included (Special Pricing)
  • 8. Knowing Lead Sources MSRP $23,475 Invoice $21,548 True Market Value $20,884 Destination Charge: Incomplete (National only) Ad Fees: Not Included Incentives: Not Included
  • 9. Knowing Lead Sources MSRP $23,440 Invoice $21,513 Fair Purchase Price $22,038 Destination Charge: Incomplete (National only) Ad Fees: Not Included Incentives: Available (Special APR)
  • 10. Knowing Lead Sources MSRP $23,520 Invoice $22,287 Average Paid $22,024 TrueCar Price Estimate $20,057 Destination Charge: Incomplete (National only) Ad Fees: Included Incentives: Available (Special APR, Grad, etc.)
  • 11. 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?
  • 12. 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?
  • 13. 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
  • 14. What To Change • Dealer trades – quote these too! • Use C/S Notes • Sell back end – Loan/Lease, Service Contract, GAP, LoJack
  • 16. The Dealer Synergy 4 “Ps” Products Give pricing! Quote aftermarket products prior to visit People Train them! Process Fit into the customer’s buying process Promotions Factor it into the quote Remind customers of qualifiers