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IS REDUCING PRICE A GOOD AUTOMOTIVE MARKETING TACTICS TO SELL MORE?

Among the numerous automotive marketing tactics, cutting prices is one of the commonly used strategies. It could be a temporary reduction in the price as a discount or offers, or you could sell at a relatively lower price than your competitors. It is possible to adopt multiple strategies with the help of AI negotiation bots to suit different customer persona. However, most of the companies prefer to adopt the pricing strategy to create attention. How good of a strategy is cutting prices?

 

Why is the price an important factor for automotive marketing tactics?

Among the multiple marketing factors, like features, aesthetic factors, value addition, uniqueness, comfort, and more, price is the cornerstone of any negotiation. The price set is the marker for the volume of products sold and the profit from that volume. Every car dealers USA are always on their toes to create a competitive pricing war to get customer traffic.

Inducing impulse buying behavior with automotive marketing tactics

Cutting price is more of a temporary strategy to induce impulse buying behavior in customers. Such an impulsive behavior is quite essential in status inducing products like automobiles. Thus, cutting prices is an effective automobile marketing tactics. How about long term benefits? Consistency in pricing allows brands to generate a reputation. Frequent alteration of prices could hurt the brand value, and customers might question the price cut’s authenticity.

Perceived price vs. product price

The method of cutting prices in the used car deals will be effective only if the product’s price falls within the perceived value. For instance, cutting $1000 off a car priced at $12,000 would be effective only if the customer believes that the car’s value is around $11,000. If the car’s perceived value is $9,000, cutting the cost to $11,000 does not make a big difference. Moreover, it shows that the inventory is piling up, which makes the customers negotiate even harder.

Persona-compatibility of your automotive marketing tactics

Persona is a term given to characterize the customers into different types. Persona1 could be the customers who are ready to spend a little more for a durable car. Persona2 is meant for the customers who are looking for flashy products for status value and are ready to pay higher. Persona3 is the customers who are ready to walk in and out of ten more car dealerships to get a better deal. By cutting down the prices, you can only attract certain types of customers. Thus, it is important to understand the type of customers for your product. If your major population of customers is ready to pay a little higher for good features, cutting costs would be a failed mission to get more sales.

Improve authenticity while cutting cost

Do not price a little lower than the largest car dealership groups and expect customers to pour into your dealership. When your price goes lower, people start to question the authenticity and quality. Thus, it is important to increase guarantees with mechanic certifications or other policies while cutting prices.

Why use AI negotiation bots for your cutting price automotive marketing tactics?

If you wish to cut costs and sell more, you should package the cost reduction with features and value. An AI negotiation bot will help the client understand the facts and statistics such as the average price of the product in the market, features compared with other models, and more. A good negotiation bot can pull in statistics to show how much a customer can save initially and over the long run by choosing the product. Moreover, when customers start to pour in due to the reduced price, an AI negotiation bot can handle the heavy traffic with ease.

For more information regarding demo and our services, please go to: http://www.RoboNegotiator.com

Contact:

Dhaval Shah
Email:
info@robonegotiator.com