Price dispute: to enter or not to enter a price dispute and how can this lead to loss of value?

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Should you or shouldn't you enter into a price dispute with your competitor?

Offering an attractive price is certainly a big differentiator for any car dealership. After all, the vast majority of consumers like to know that they are paying a fair price for their vehicle. However, it is important to be careful that bold strategies, such as competing on price with other dealerships, for example, do not end up having negative results.

In this article, we will discuss the topic and give tips on how to remain competitive in the market in a strategic manner and with a satisfactory profit margin. Keep reading and follow along!

price dispute

Justify your price instead of getting into a fight
A car is one of most people's main dream purchases. Therefore, it is rcs data lebanon that they seek as much information as possible and think carefully before closing a deal.

In this context, going beyond the price issue is essential to stand out from the competition and attract more consumers. But how do you do this?

Most of the time, choosing the ideal car model involves factors related to lifestyle, dreams, status, etc. Therefore, when negotiating, the salesperson needs to be prepared to offer true, authentic and differentiated information that the consumer will not find anywhere else.

Offering products and services that justify their price is more interesting than entering into a possibly damaging “war” for the lowest price with the competition.

How price competition can be detrimental to the car sales market
To set the best price for selling cars, you need strategy, knowledge of the segment process and common sense. The danger of creating a sales strategy based exclusively on price is that the consumer tends to buy only at that moment, that is, there is no type of relationship or identification with your store.

Furthermore, a price that is much lower than the others on the resale market can give the customer the feeling that there is something wrong with that establishment, which can be harmful to the company's image. After all, what is the justification for cars of the same model, options and year of manufacture having considerably different prices?

Read also: Results-based management in vehicle dealerships
Another disadvantage is that fierce competition with competitors can cause your profit margin to be significantly reduced, resulting in financial losses.