By Matt Clark

If there is a single issue of contention in every dealership Internet department, it is pricing. This one word generates an onslaught of questions and creates immeasurable conflict.

Do I do it? Do I not do it? If I am going to price it, how much should it be? Can I price too low? Can I price too high? What are other people doing? When should I do it? When should I not do it? Am I giving up gross profit too quickly? Am I running customers to my competition?

Making the Decision
The fact is that prospective customers are looking for pricing when they submit a lead on your Web site. Most dealerships don't provide pricing, at least not without feeling conflicted. This uncertainty is a throwback to "the good old days" of never talking about price on the phone or the lot. That practice worked well when the franchised dealership was the only place a prospect could get a price. If the dealership didn't give it to them, they couldn't get one.

That's not true anymore. In many cases, your customer can get a price on a new or used vehicle in just a few mouse clicks (e.g., KBB.com, Yahooauto.com). By avoiding pricing, you can run off as many customers as you keep (look at lost sales reports).

So the question isn't really whether or not to price, but how to do it effectively.

How to Deal With Pricing
Here are 7 steps to make pricing a central theme in your first non-automated e-mail response to an Internet lead:

Treat it like a marketing message. As such, it should function like a dedicated ad, commercial, or offer for your customer. It is not designed to close the sale but to get a response from them.

Don't be afraid to quote what you are advertising in the newspaper, radio, or TV.


Include pricing for the vehicle they were interested in and always give an alternative choice. Have you ever switched a customer up or down – even to pre-owned – in the showroom? A best practice is to give a step up or down and a Certified Pre-Owned in this e-mail. The choices here allow the customer to satisfy their need to shop, but in your inventory only.

Offer some reasons to do business with your dealership, such as, "Been in business 42 years under one owner…" or "Saturday and Sunday service hours…" or "5-time President's award winner…" You might also include some testimonials from previous customers.

Give a call to action. For example, "These rebates are for a limited time so I'll call shortly and set a time for us to get together…" Or, "You're the 5th person today to ask about that Ranger..."

Let them know you will be calling shortly.


Call them shortly. Don't over-promise and under-deliver.


By providing pricing and alternatives, you will find more customers will talk to you. After all, isn't that really the goal of any successful Internet department – to get prospects to the showroom?

Matt Clark has been in the automotive business for over 21 years – 15 in retail and 6 with Reynolds Consulting.