Tuesday, July 3, 2007

Minimum Price Setting Mayhem

Since the beginning of 'Internet Time' folks have been using this wonderful marketing tool to sell their wares. In the RV industry that means selling motorhomes, fifth wheels, travel trailers, toy haulers, pop-ups, truck campers, parts & accessories, etc... to customers down the street and literally around the globe.

It didn't take long for some folks to figure out they could sell their RV's at rock bottom prices, not take much in profit, and hope to 'make their millions' on the volume. For the legit RV Dealer doing their best to provide knowledgeable personel and top notch service it cuts them right off at the knees. Their business model is built on meeting ALL the customer's needs and create life long customers with repeat purchases.

Along comes the Supreme Court this past week and overturns a 95 year old law that prohibited manufacturers from setting minimum retail prices. Now, as RV manufacturers start setting minimum retail pricing legit dealerships need to get creative.

First, is making sure that your website isn't 'all about price and a great deal'. Yes, having your prospect feel like they are getting a fair price is important, but it's not always the most important. As pricing enters a 'more level playing field' be prepared to use your website to tell your prospect why they should shop from you. How do you do that? Get quality content about the RVs that you sell and lots of it. Become your prospect/customer's RV expert so they want to come to your dealership when they have questions. Shout out loud your unique selling proposition ... what makes you different from the other guy.

Second, get creative with your pricing strategies. For instance, our InteractRV web system allows you to set a 'Get Lowest Price' on any unit you wish ... on the unit page it shows the 'retail price' and a button that says 'Get Lowest Price' ... after clicking it it tells you that the manufacturer won't allow you to display your selling price without the prospect asking for it ... once they give you their name, email, phone, and zip it displays your selling price to them. The prospect feels as if they are getting a fair deal and you the dealer has a name, phone, email to follow-up them up with.

The bottom line ... use Minimum Retail Pricing to your advantage, earn the confidence of your shoppers, and sell more RVs!

Greg Gerber at RV Trade Digest has a good article on Set Pricing you might find interesting.

Until next time...

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