By Josh Vajda
So how can you increase your average front-end gross per vehicle, as well as get the Internet department gross in line with the showroom gross?
Here are a few tips:
• Always provide the customer with choices and carefully review leads for model selection and trim levels. If you’re quoting your customer the loss leader or base model and they want the luxury model, then you’re setting them up for a price expectation way lower than is reasonable.
• Just like when you’re face-to-face with a customer, focus on building value in the vehicles. Customers want to know what they’re buying is worth the money, and you have the opportunity to explain why the price is what the price is.
• Don’t be tempted to immediately give a discount, and be wary of programs that send inventory selections to customers with quotes designed to beat your competition or that are loss leaders. Big discount quotes make the customer believe all vehicles can be significantly discounted.
• Mystery shop your competition from time to time on key vehicles to ensure you’re pricing your vehicles to market.
• Consider location. If a customer is close to you, then price in the convenience of shopping with you. If the customer lives 20 miles away and has to drive past multiple competitors in order to get to your store, you may be more aggressive in your pricing.
• Set the rules in the Internet department based on what vehicles are selling for in the showroom. If they know the ‘floor’ price, you’re less likely to have a significant discrepancy between the showroom and the Internet gross.
Use these tips to increase the averages in the Internet department to be more in line with showroom averages.