Your pricing methods can either make or break your auction sale.
When to use it
When the vehicle has been inspected and is now ready to be valuated for the auction listing.
Overview
- Research if there’s margin in that vehicle.
- Every buyer has different ideas regarding the value of a vehicle based on the estimated recon costs.
- Target franchise dealerships and dealership groups who have trade units that they’re struggling to get rid of. They’re more willing to spend money to market and sell the vehicle.
- Pricing is the mechanism that drives action from buyers.
Here's what you should know
Research the margin in the vehicle.
Understanding the margin will guide your pricing strategy, ensuring that you’re competitive while still achieving your financial goals. This involves assessing the vehicle’s acquisition cost, any reconditioning expenses, and its market value. By conducting thorough research on similar vehicles in the market, including their pricing and condition, you can better gauge how much room there is for profit.
Be mindful of every buyer’s personal value of recon costs.
Each buyer has their own perspective on what needs to be done and the associated costs. For this reason, all damage and its details must be provided to the buyer in the vehicle report. Through this, buyers can determine whether the recon costs deter them from bidding on the vehicle or not. Do not adjust the reconditioning amounts based on personal assumptions that the recon will hinder buyers.
Pricing is the mechanism that drives buyers.
Ensure that thorough research is conducted when determining the value and selling price of the vehicle. The users found on the auction platform are often experts in their trade and tend to deduce the general value of the vehicle through the price it is listed at. Going too high on your listing price may hinder buyers from bidding on the vehicle and low-balling the price may raise concerns regarding the condition of the vehicle.
