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Smart Shopper Stories from the Sales Frontlines
47368 messages, Last post on Nov 10, 2009 at 9:15 PM
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Let me tell you how our pricing is set up on our used car lot. We overprice our vehicles by 3-4K on EVERY SINGLE UNIT. Of course, when no one cracks the door on our vehicle for 45 days we reduce the hell out of it but that's beside the point... Then we see if we can rope some dope into buying it at that price. It's up to the customer to try and get a price that makes sense. We nail some people on the sticker prices, especially if it's a CPO and we can justify it with the warranty. But the point is that the prices on the windows are for the people who come in blind and want to buy now. We even print out these corny Kelly Blue Books from the 90210 area code to present a false market price that is more in line with what we want to get for the car. |
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Replying to: alejandrom (Dec 01, 2008 8:23 am) We overprice our vehicles by 3-4K on EVERY SINGLE UNIT. Of course, when no one cracks the door on our vehicle for 45 days we reduce the hell out of it but that's beside the point... Then we see if we can rope some dope into buying it at that price. It's up to the customer to try and get a price that makes sense. We nail some people on the sticker prices, especially if it's a CPO and we can justify it with the warranty. But the point is that the prices on the windows are for the people who come in blind and want to buy now. We even print out these corny Kelly Blue Books from the 90210 area code to present a false market price that is more in line with what we want to get for the car. I.....ummmm.....I....ummmm....WOW! I really don't know how to respond to that. Well, yes I do, but I'll keep it to myself. |
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Replying to: alejandrom (Dec 01, 2008 7:51 am) You are absolutely correct. It is the worst form of body language and one of the worst insulting techniques. Waving me off with your hand is just as bad as giving me the finger. Neither one elicits a positive response. Richard |
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Replying to: alejandrom (Dec 01, 2008 8:23 am) Is it something you are proud of? Wow... Now I really know I would not shop in your place. Putting high stickers is one thing (everybody does that - customers too, when they want to trade their car - all harm in too high asking price is that nobody will buy it), but false reports?   If I caught a store doing that, even twenty thosand dollar discount would not help. Once a liar...
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but false reports It's not a false report. It's the value of the car in the 90210 zip code. The thing is...it does not say what zip code is being used on the KBB report. So if you print one out using a 90210 zip code the value of the car will be higher then if you printed it our with a local Chicago zip code. Tricks of the trade. They also use a Manhattan zip code to see if the KBB value is higher there then Beverly Hills. Shady huh? And no, I'm not proud of it. It's not my sandbox...I'm just playing in it. I would rather price our cars with a 2K mark-up and sell them without any hassle. We mark-up cars at least 3-4K over what they should be. To give you an example we were asking $17,900 for a 2006 Camry LE with 41,000 miles. I think it's an outrageous price. I could probably pick up a similar car for about $13,900. But we put that $17.900 out there to try and reel in a whale.
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Replying to: alejandrom (Dec 01, 2008 8:23 am) That is also what most of the dealers in my area do. They usually price 2K over KBB retail and as much as 3K over Edmunds TMV. I can see why no one touches them. What I don't understand is that "home run" mentality. Do you sell enough at that inflated price to make up for the heavy discounts you have to give later? I just can't believe that there are that many people with "hot pants" who run out and buy a car without any research. As to your comment about old farts just out to annoy everyone, be careful, they're the only people with any money left. 
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Replying to: oldfarmer50 (Dec 01, 2008 9:25 am) And they post on this site.   Richard |
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Now don't get me wrong....I like to make money just as much as the next guy. And when these people sign the paperwork they are grown adults making a personal decision. But there was this one customer who I kinda feel bad for. They bought a 2005 Chrysler T+C fully loaded from me for $11,991 plus 3K in negative equity. After they got out of the finance office they owed $25,250 on their loan. They bought everything in the back end including life insurance. Now these people can't get out of their Chrysler for the next 7 years. I probably could have sold this customer and his family (wife bought a car from me, son bought a car from and his sister in law bought a car from me) a couple more cars but they are so buried in the ones they bought that they can't trade them in. We went so far over the top that they can't buy anything else. That is bad business in my opinion.
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Replying to: oldfarmer50 (Dec 01, 2008 9:25 am) How does this surprise you? Most people have no idea who the current vice president is? You also forget, there is a "large" segment of people who are payment buyers. They couldn't tell you the cost of the car or the interest rate - all they know is they bought that car for $275 per month (and probably 72 months - but they don't realize that). I don't blame anyone for this....it's just how people are.
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Replying to: traindriver (Nov 27, 2006 2:37 am) Flash forward to Friday, we show up I find my salesman and we swap keys. Take another test drive while the Dodge is appraised and that is waiting on us when we get back. After a few questions, his assistant is back with an offer (my guy was in the middle of another deal when we showed). I bumped them by a grand on the trade and 200 on the already red tagged price of the GMC and boom! We have a deal. Arrived at the dealer at 11:30 and was eating a burger at the McDonalds up the road from the dealership by 1, with a new truck in the parking lot. See! It can be done quickly and painlessly if both sides are eager and prepared and lay off the gamesmanship. BTW...My guy had a really good day. In addition to mine, he moved a used Yukon appeared to be close to closing a couple on a Vibe. |
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