Successful car dealers know how to price cars to attract the right customers to ultimately make a profit.
There are many pricing strategies and none of them are wrong.
E.g. High or Low price strategies work provided you are transparent with the in-market-car-shopper. But, the ultimate way to get this right is by pricing cars to market, which is an effective approach to find a “sweet spot”.
Recently, we looked at some key demand and supply data insights – starting with the VW Polo GTI – which was the most searched for car on AutoTrader.co.za for Q1 2019 (January 2019 to March 2019).
We found that during that period, if you thought that selling a VW Polo GTI in Mpumalanga was unprofitable – you would have been surprised. In this instance, GTIs sold in the Mpumalanga province were in much higher demand than anywhere else in the country. And they sold faster too.
Satisfy the demand
Stock market investors rely on live-market-data and so should your dealership. Not only can you identify and analyze current trends in sales and profit patterns, dealers can also track and respond to high demand makes, models and price brackets. Knowing which vehicles are in high demand in your particular area, is important, so you can make the best choices on what to stock.
Know your price
Accessing information using live market data offers a view of real-time competitor pricing and vehicle specs, helping you price trade-ins and cars accurately minute-by-minute. By using the right pricing strategies relative you are able to turn stock quicker.
Manage your stock age
A higher market days’ supply means there are a greater number of competing units available in the market than a vehicle with a lower market days’ supply. Dealers who manage this effectively are less likely to make the mistake of acquiring and pricing a vehicle as if it were a hot seller — only to see it turn into an ageing unit.