Dealers Drive Quality Traffic With Continuously Updated Pricing
May 25 2006 - 11:44AM
PR Newswire (US)
cars.com Survey Examines Online Pricing Strategies CHICAGO, May 25
/PRNewswire/ -- A used vehicle with a stale price likely will not
sell quite as well, a cars.com survey found. Nearly 50 percent of
responding dealers report that continually updating vehicle pricing
as the inventory ages provides the best online approach for driving
quality traffic to the dealership. Cars.com conducted the survey in
the April issue of its monthly Internet newsletter,
dealeradvantage. "Given the fierce competition they face online,
dealers understand that they have to take a more proactive approach
in merchandising their vehicles," said Ralph Ebersole, director of
dealer training for cars.com. "Ensuring that pricing stays
consistent with market conditions assures customers they're getting
the value they expect and helps dealers keep their inventory
moving." As for other strategies, an almost equal number of dealers
indicated that being competitive (28 percent) or offering the
lowest price (20 percent) proved to be the most effective. Only
five percent of respondents recommended using a formula (e.g., a
set percentage more or less than invoice) to draw customers.
"Shoppers associate a substantially lower price with problems and
perceive a notably higher price as an indication that they won't
get a fair deal," Ebersole said. "It's important to remember that
every vehicle is distinct and that pricing should reflect the
vehicle's distinguishing features. Rather than simply offering the
lowest price or using a strict formula that doesn't factor in
competitors' pricing, savvy dealers determine an appropriate price
by taking into account the vehicle's unique options, condition and
mileage." Dealeradvantage, produced by cars.com, is a free
newsletter for dealers that delivers news, tips and advice about
online automotive sales to help dealerships get the most out of
their online advertising. To see the most recent issue and to
subscribe to dealeradvantage, please visit:
http://dealeradvantage.cars.com/enews/06/05/ About cars.com
Partnered with more than 200 leading metro newspapers, television
stations and their Web sites, cars.com is the most comprehensive
destination for those looking to buy or sell a new or used car. The
site lists more than 1.5 million vehicles from more than 11,000
dealer customers, classified advertisers and private parties to
offer consumers the best selection of new and used cars online, as
well as the content, tools and advice to support their shopping
experience. Recently selected by Forbes.com as a Best of the Web
site for car shopping, cars.com combines powerful inventory search
tools and new-car configuration with pricing information, photo
galleries, buying guides, side- by-side comparison tools, original
editorial content and reviews to help millions of car shoppers
connect with sellers each month. Launched in June 1998, cars.com is
a division of Classified Ventures, LLC, (
http://classifiedventures.com/ ), which is owned by six leading
media companies, including Belo (NYSE:BLC), Gannett Co. Inc.
(NYSE:GCI), Knight Ridder (NYSE:KRI), The McClatchy Company
(NYSE:MNI), Tribune Company (NYSE:TRB) and The Washington Post
Company (NYSE:WPO). DATASOURCE: cars.com CONTACT: Brian R. Hannan
of cars.com, +1-312-601-5519 (direct), +1-312-218-0788 (mobile),
Web site: http://www.cars.com/ http://classifiedventures.com/
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