Question about Pricing? MSRP?

[sandiego]

This is a question to the dealers and to consumers

How do you display your pricing?


Consumers: what do you think about dealerships displaying MSRP pricing?

During our normal time of year I display MSRP pricing, then display our normal price

But during sales I always go back and forth on whether I should display the "Sale Price" off of our normal pricing or off of the MSRP price.

I like to display the savings off of our normal pricing, but everyone in my market is showing savings off of the MSRP pricing and sometimes consumers don't think we're giving as much off as the compeitition, but that is because we aren't showing the markdown off MSRP. I've experimented with both ways in the past and I can never decide which one is right. I don't like to do the savings on MSRP because I think that's not the most honest, up front way of doing it, but if consumers can't see throught that with othe dealers. then what are you supposed to do?

[tmknies1]

Why not show all:

MSRP $
Our everyday low price $
Special sale price $ valid until xx/xx/xxxx.

[drewstar]

What's the point of MSRP?

As a consumer, i see it as some made up number that sales folks can compare it too.  For me, it's an annoying pain in the butt that has absolutey no relevence at all.   I'd say if you are going to display MSRP, Do so like

MSRP $2300,000.000

Our Price $7450. !!!!

Sale price:  $7200 includes lifter, cover steps and rubber duck!!

That way at least the consumer can see what's going on.

When yo ubuy a car, do you care what the MSRP is?

[drewstar]

yea, what Tmknies said.  

that's what i ment.

[sandiego]

Why not show all:

MSRP $
Our everyday low price $
Special sale price $ valid until xx/xx/xxxx.

I've tried that before too, but there just gets to be too much information on the spa for the consumer to digest. Because we put a lot of other information on there about what else we include and the normal price for those items.

We include, steps, cover, delivery, chemical start up kit and then show the price for the options available. But I like to let the consumers know the value of the items we include, because a lot of dealers don't include that stuff and the consumers ask "well why are you $xxxxx amount more" and often it's because we include everything with the price of the spa and my competitors don't.

[sandiego]

What's the point of MSRP?

As a consumer, i see it as some made up number that sales folks can compare it too.  For me, it's an annoying pain in the butt that has absolutey no relevence at all.   I'd say if you are going to display MSRP, Do so like

MSRP $2300,000.000

Our Price $7450. !!!!

Thanks for the feedback drew, I totally agree with you, but it's just a pain to try to find a good template to show all that information on the spa withount innundating the sign with too much text.

But I've been working on it.

Sale price:  $7200 includes lifter, cover steps and rubber duck!!

That way at least the consumer can see what's going on.

When yo ubuy a car, do you care what the MSRP is?

[Chas]

MSRP =      $x
Our price =$x
Special - good till X/x = $x


I had a manger who wanted to post the above AND put a line below it which said, "save $x."

He tried it once when I was gone, and I came back to a mess: customers were skipping down to the amount saved (over MSRP) and thinking THAT was the price of the spa. They were pulling out the checkbook ready to buy an $8K spa for $3500.

[drewstar]

I understand you don't want to confuse folks.  

I think one sigh with the MSRP,  your everyday low price, and (if applicable a sale price) is good.

Perhaps on another sheet of paper,  have the package
showing pics of the steps, chem kit, cover and lifter,  and thier individual prices,  and then stating:

"ALL our  tubs come complete with Everything you need! That's a $1300! FREE!  We want you to be happy.  That's the Sandieago Difference! "

Each tub has the price sign, and next to it a simple, clean sheet with the extras.

Other signs in the store say "Ask about the Sandiego Difference!"

[sandiego]

I understand you don't want to confuse folks.  

I think one sigh with the MSRP,  your everyday low price, and (if applicable a sale price) is good.

Perhaps on another sheet of paper,  have the package
showing pics of the steps, chem kit, cover and lifter,  and thier individual prices,  and then stating:

"ALL our  tubs come complete with Everything you need! That's a $1300! FREE!  We want you to be happy.  That's the Sandieago Difference! "

Each tub has the price sign, and next to it a simple, clean sheet with the extras.

Other signs in the store say "Ask about the Sandiego Difference!"

good idea thanks drew... I like that.  

[Brewman]

I don't put much stock in MSRP.  Maybe if stuff, other than the occasional high demand car, actuall sold for that price it would mean something to me.  
I consider it just a way to try and convince someone they're getting a deal.  

Just give me YOUR price.  What do you want for this (noun)?

[luvmytub]

I like drewstar's idea....

[Mendocino101]

It a funny thing...but by the replies here it seems there is just no pleasing folks and that dis-trust is view that many take.....I do not know how anyone who genuinely could have a MSRP of 20k plus and show a price of around 8 grand and have it be credible but not all do that and for the dealers who do list what is the real MSRP and than a sale or a everyday discounted price.....it is the rare customer who says OK that's fair....most want to know is this the "lowest" price.....we do list genuine MSRP and than our price.....

[Vinny]

I think some consumers just want the bottom line - the MSRP is BS, IMO. When I shop for anything I want to know how much it will cost me.

Yes, there can be sales and the price can fluctuate but having a "sale" every other week is bogus. BTW, it would be really nice that If you know of a sale happening (manufacturer sponsered or other) let your potential customer know - makes them believe your on their side!

I think posting the price is a good idea but make sure you have ALL the info posted as drewstar said. My dealer had prices posted and she didn't have it all posted and when I added up the "price" of the spa - it was way too expensive.

Since she was busy with a real customer and I was window shopping so I didn't discuss too much with her but called her back later in the week. The pricing posted was correct but she had her own way of pricing out options and the tub became extremely affordable again.

In the past I know that dealers have posted about shoppers that come in look at a "sticker price" and leave ... maybe that's a good thing as they are not wasting your time; if their interested they probably will talk to you.

[Mendocino101]

I think some consumers just want the bottom line - the MSRP is BS, IMO. When I shop for anything I want to know how much it will cost me.

But there has to be a point of reference and that's what a real MSRP is.....I think what most people want is a fair price but they want to do business with someone they feel comfortable with....

[anne]

What's the point of MSRP?

As a consumer, i see it as some made up number that sales folks can compare it too.  For me, it's an annoying pain in the butt that has absolutey no relevence at all.   I'd say if you are going to display MSRP, Do so like

MSRP $2300,000.000

Our Price $7450. !!!!

Sale price:  $7200 includes lifter, cover steps and rubber duck!!

That way at least the consumer can see what's going on.

When yo ubuy a car, do you care what the MSRP is?

My thoughts exactly.