During the past few years, Australia has seen leaps in car pricing due to supply chain issues caused by the Coronavirus pandemic. As consumers and car yards adjust to this new normal, one thing is clear: buyers have new expectations regarding the car buying process. Therefore, dealerships that want to maintain relevancy in this evolving landscape should use market research software to provide their customers with the shopping experience they expect.
1. It Makes Your Dealership Seem Dishonest
Research has shown that there's something automotive consumers value even more than car dealerships offering a great price, and it's car dealerships being transparent about their pricing. Unfortunately, most dealerships have tried the online bait-and-switch pricing strategy at least once, and while it may get customers in the door, it doesn't keep them or impress them.
Consumers want consistency in their pricing, both online and in person. That means if you're using a specific pricing strategy online, you must also implement that strategy in-house. Failure to maintain consistency between online and real-life pricing is a major red flag for buyers, one that can have them leaving your car yard without even taking a test drive.
2. It Can Devalue the Product
When your dealership has extreme price discrepancies between similar vehicles, it can make customers second guess their purchase. For example, if a customer sees you selling two nearly identical cars for a significant price difference, they won't think that both are worth the higher amount and that one is just a great deal. Instead, they'll believe both vehicles are worth the lower price point and the higher one is overpriced.
Car Pricing as a Value Indicator in Australia
Although there are times when particular circumstances dictate a lower price or rebates, be cautious of how you promote them and how often. Discounting your product without an apparent reason makes buyers wonder why they should ever consider paying full price and can lower their opinion of a vehicle's value.
3. It Makes Car Yards Appear Out of Touch
Demonstrating that you understand the current market makes customers more inclined to purchase a vehicle from you. With tons of data available at their fingertips, buyers don't have to trust everything they hear from a sales team. Research has found that the average shopper spends around thirteen hours researching their next vehicle online, which means they know the appropriate price for a given vehicle before arriving at your yard.
Use Market Research Software to Stay Relevant
Since there's a chance that the only impression you get to make on a potential client is online, make sure your dealership's pricing is easy to access online and appropriate to your local market. First, use dealership software to determine how your competitors price their vehicles.
Then, be sure vehicle listings contain the vehicle's actual price, and don't just direct shoppers to contact your business for a quote. By charging a consistent price, making it simple to find and appropriate for the market, you'll be the easy choice for buyers.
Don't let inconsistent pricing strategies undo all the hard work you put into growing your dealership. Instead, utilise dealership software systems to maintain stable pricing systems based on current market research and watch your business thrive.
