The COVID-19 pandemic has created a new world of social distancing, where many dealers have been forced to either limit the number of people in their dealership or close their doors entirely. While dealers traditionally prefer to shake a prospect’s hand and close a deal right on the lot, coronavirus has made that almost impossible. Instead, with so much of life becoming digital, many dealerships are accelerating their embrace of online transactions. One unique component of the sales process that occurs in the physical dealership, but is often missing online, is the chance for consumers to make an offer on a unit — which is a new feature we’ve added to our marketplaces (and will soon add to our dealer websites).
Benefits of Make An Offer
- Generating Leads ● It is always advisable to provide a unit’s price within its listing, as listings with pricing information receive many more leads and conversions than those without. By allowing consumers to make an offer different than the listed price, your dealership can capture even more leads, as those who may have avoided the listing due to cost concerns can now engage with the listing because they now feel the price may be somewhat flexible.
- The Quality of Leads ● Connections generated by making an offer on a unit are more likely to be high quality leads. Price is the primary concern of most buyers, and these consumers are not only interested in the listing, but are so serious that they are ready to have a conversation about the price for purchasing the unit. These leads have fewer barriers between them and the purchase decision, and are high-priority targets for conversion.
- Nurturing Leads ● Making an offer is a great way to further engage a prospect. A consumer’s ability to take a productive role in initiating a discussion about pricing can help them feel ownership in the sales process and invested in the purchase. In other words, giving consumers the opportunity to make an offer is an effective way to nurture a lead and move them increasingly closer to finalizing the sale.
- Move More Units ● Allowing consumers to make an offer can help you move units that haven’t been able to sell. Whatever the reason for not selling, a unit that sits for over 60-90 days on your lot is constantly losing value, especially if it becomes outdated with the release of newer models. A consumer offer on a hard-to-sell unit can help you cut your losses and still make some profit off a vehicle that is otherwise taking up storage space.
Sales & Profits ● Giving consumers the opportunity to make an offer is not a risk to your bottom-line, and in-fact can help return profits. If you do receive a low-ball offer on a unit, you can always say no. However, most people understand there’s a reasonable range for a unit and prospect offers are typically not dramatically lower than the listed price (in fact, we don’t allow consumers in our marketplace to make an offer that’s too-low). There’s also the period of negotiation during which you can make your pitch on the true value of the vehicle. In short, you never have to settle for a prospect’s first offer, and can still make a strong profit on a sale that began with the consumer making an offer.
To read the full article, click below to download the PDF.