Many ISPs grapple with the question of whether, or how, they should respond when an Internet prospect asks about price.  Research shows that Internet dealers have more success with Internet prospects when they offer some sort of pricing up front. Most likely, it’s simply a matter of building trust with the customer.  The important thing to keep in mind is that you want the customer to feel comfortable enough to do business with you.  Following are a couple examples of ways you can field this question, one good; one bad.

Let’s assume a customer submits an Internet lead for a price quote on a 2004 VW GTI V6.

Example of a Poor Response via Email or Voice Mail:

Dear Pat,

Thanks again for your interest in a 2004 VW GTI V6. I suggest we set up a time to meet at the dealership for a test drive and we can discuss pricing at that time.  Because there are so many options and levels of equipment available, it’s difficult to give you an exact price on the car you are interested in. Please email or call me back and we can discuss price.

In this response, the customer is not given the basic information they requested.  After all, this is the expectation of the majority of Internet prospects as most lead forms say upfront: “Get a free price quote.”  So, by not offering a price, you haven’t yet delivered anything of value to the customer or begun to build a relationship. Nor does this email response prepare the customer for you to follow up. Essentially, the customer is “off the hook” and may even delete the email. 

Example of a Good Customer Response via Email or Voice Mail

Dear Pat,

Thanks again for your interest in the VW GTI V6.  I can offer you a few different prices based on your needs:

• 2004 Fully Loaded VW GTI V6 at $26,000
• 2003 Certified Pre-Owned VW GTI V6 at $23,000
• 2004 VW Golf at $19,000 

Pat, as you see there are many options I can offer you. I am willing to work with you to find the perfect vehicle at a price that’s right for you. We offer special pricing for our Internet customers.

Please ask for me directly if you decide to come in to the dealership. Our Internet department can offer you the lowest price, in most cases, due to the volume of vehicles we sell.

Please call me back at your earliest convenience. I will also follow up with you by phone shortly to continue assisting you with your vehicle needs. 

Thank you again for your request. I look forward to helping you further.

With the first price quote, you provide the price at which you want to sell the specific vehicle requested, with limited room for negotiation.  With the second, you offer a price for a CPO vehicle you have in inventory, at a lower price point, with room for negotiation.  You should also inform the prospect if a CPO vehicle has low mileage because many people may not realize that a pre-owned vehicle can have less than 10,000 miles, which may be a great alternative.  In the third price quote, you offer a price on a “value leader” in another category, with room for negotiation.

By offering a range of prices, you are exceeding the customer’s expectations.  This can be far more compelling to the customer and they’ll be less inclined to “shop” the price because they see they have choices with your dealership.  You also show you have a level of flexibility, that you’re willing to invest some thought and time in them, and that your dealership has a selection of vehicles.  All this helps build the first tier of loyalty with your prospect.  In addition, by letting the customer know you’ll follow up, you keep them engaged longer than many other dealers will.

If your upfront pricing response to the customer is in email format, it’s important to put in a phone call too.  If your prospect is unavailable, leaving a message to notify them that you’ve sent them some pricing options by email can entice them to open your email (another channel of communication.)

Finally, always remember to specify that you are offering “special Internet department pricing.”  This increases the likelihood that if your prospect comes into the dealership without an appointment, they’ll ask for you.  After all, you should be the one who benefits from building a solid relationship with your Internet prospects.

Steve Pace is the Vice President of Sales for Dealix Corporation.