New Pricing Tool for Dealers

I would like to say that my blog posts have been slow in coming because the startups have been slow, but there were three interesting new companies and deals announced this week (probably a lot more) so I will get started.

Dealerskins, a Dominion Enterprise company, partnered with DataOne to provide a pricing tool to dealers let dealers know how their cars a priced relative to the competition within a 100 mile radius. If the price is out of line with the market an email is sent to the dealer. One way the partners see this being used by dealers is by making sure the cars are priced less than competitors and show up first on Autotrader.

I think this would actually be more useful as an inventory-buying tool than a price-setting tool. To a certain extent, most dealers price on a cost plus basis, as opposed to market pricing. Depending on how the product works, if it’s possible to add a number of cars to the list and see the average market price, it would be easy to compare market sale prices to auction buy prices and spot the best profit opportunities. This paired with an inventory optimization product like Point could be a great combination for dealers.

2 responses to “New Pricing Tool for Dealers

  1. Hmmmm…now that Manheim has sold POINT to DealerTrack – the combined offering will be called InventoryPro.

    Oh – and let’s not forget about First Look (www.firstlook.biz).

    Cheers!

  2. iMarketAuto Review:
    A few months ago, I spent a few hundred hours with the DataOne iMarketAuto pricing platform.

    I LOVE THE CONCEPT. It not perfect, it takes a ‘lil effort but it has the potential to be a Killer app for both the Buy-Side and Sell-side!

    Sell-side.
    —Have an aged unit pricing process that’s less than scientific?
    —Is the turn-over rate of your entire used inventory slowing?
    —Have the wrong product mix and want to flush some cash & move some iron fast (and spend ZERO marketing dollars)?

    The right way to do it is to gather your problem children (aka slow movers) & shop the web like our customers do on each used unit. You;d be amazed how many “duds” are suffering from poor pricing.

    But… who has time to shop autotrader.com and cars.com on dozens of units each week? The time required to gather & drill down the data would take up a whole day (or 3).

    The iMarketAuto Service polls your DMS, pulls VINs, then matches your VINs to the VIN’s it finds at Autotrader.com and Cars.com. If you make the effort to update the trim info in iMarketAuto, it’ll seek out direct hits for you.

    By far, the most amazing report is the flash graph summary. For each unit, they graph the complete competitive findings in your market. Price up the left side, miles along the bottom. You’re unit is highlighted, so at a glance, you’ll know QUICKLY where you are in the consumers search relative to your competitors. Hover your mouse over any “dot” on the graph and a summary pops up (with photo).

    Words don’t do this justice. I showed a GSM this graph and his words to me were “…gulp… the public can’t see this… can they?”

    Buy Side:
    Last time I checked, DataOne had no buy-side support for this platform. You can’t query it. Every evening, it polls your DMS, runs out to autotrader.com and cars.com creates the report then emails it to you. Because it’s done dynamically, they don’t have the data on their servers for you to ask it questions. They’re leaving money on the table on this feature!

    I’ve personally written the Pres. Jock Pereira and told him that the service price is too cheap, only the real smart operators would leverage this information and these players would pay a premium for this edge.

    Industry Problem:
    Anyone in the Used Car marketing industry knows that a VIN vs.VIN look can only get us so far. VINs give us Year, Make and Model, but not the Trim. For an example, take something as mundane as a 2005 Chevrolet Impala base, vs the 05 Impala in the LS Trim. That’s a $2,500 swing at wholesale. The used car side is filled with incomplete listings. Although iMarketAuto is a huge time saver, it requires the dealer to login in (daily) and complete the Trim info on all of your units. Next problem is that many dealers out there don’t get the compete Trim info into Cars.com and AT making for an apples to oranges outcome.

    Overall, I give this platform 9 thumbs up!

    hope this helps,
    Joe

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