Why Consumer Asking Price is a Non-Factor for Dealers
Tom Gregg's presentation at Digital Dealer focused on the crucial aspect of pricing when acquiring vehicles from private sellers. Gregg observed that many sellers tend to set high asking prices, hoping to negotiate down later. However, this strategy often leads to a lack of interest from potential buyers, which is a common scenario for dealers who price their cars excessively high on their lots.
To overcome this challenge, Gregg suggested that dealers should focus more on their engagement strategy with the sellers rather than the initial asking price. He encouraged dealers to proactively reach out to sellers, even when the asking price seems too high. This is because fewer competitors are likely to be interested in a car that has an excessively high asking price, creating an opportunity for dealers to acquire the car with less competition.
This insight highlights the importance of looking beyond the initial asking price and focusing instead on creating a strategic engagement with sellers. By understanding the market dynamics and being willing to initiate conversations even with vehicles that have steep prices, dealers can position themselves to acquire valuable cars with less competition.