22 Aug Common Sense Pricing Strategies for Preloaded Bundles
As more dealers embrace the concept of offering preloaded ancillary bundles on their inventory, the question inevitably comes up about pricing.
Not just how much do you charge but how should the breakdown be explained to the buyer? Do you show the individual cost per product? How low should you discount it altogether?
Here are some tips to help your store figure out how to handle the bundle pricing and what the best way to justify that price is for your buyer…
- Fair Pricing: Illustrating value to the buyer is key here but that could get crushed under the weight of a bundle that is priced too high, turning off the buyer immediately. If your provider is offering the cost at a reasonable amount, there is no reason to push the cost too high. You want it to be a reasonable amount but one that doesn’t make it difficult to include in the loan or impossible for the buyer to pay out-of-pocket if the LTV won’t allow for it. Look at your cost and add 40-50% or so…it should land well for revenue and penetration.
- Be Transparent: Dealers can get a bad reputation for all sorts of things but lack of transparency is one thing that can be avoided. Buyers are more educated than ever on ALL products F&I sells thanks to internet research and social media postings. Everyone talks and everyone wants to share what THEY paid.
Offer buyers a detailed breakdown of everything included in the bundle and why they are complementary products when offered together (ie- lease packages designed to reduce risk of high recon fees at turn-in). Don’t make the bundle a mystery…be clear about what it protects and why it’s priced the way it is to address that value.
- Be Careful About Showing Individual Pricing: If your preloaded bundle has 4 components, tire & wheel-PDR-windshield-24/7 for example, and you price it at a standard $595 per unit, be careful how you break it down for your customers. If they insist on a per-product price breakdown, be ready to present numbers that make sense. Make sure the math adds up and still shows that your store is offering a strong discount if they are taken together rather than bought individually. Some dealers get caught off-guard here…be prepared when asked what they cost individually.
Click here to learn more about how ExoBundle can help you not only get every unit covered but we can give you all the training and support your staff needs to confidently sell this to every customer with pricing that customers will appreciate.