Executing a market-driven pricing strategy backed by real-time data helps stock listings attract more attention and qualified enquiries for sales conversion.
The effects of not pricing to market, however, can be seen in the sale of four recent dealer used vehicles on carsales. In each of the below cases, the stock item was priced above the LiveMarket Kilometre Adjusted Price (KMAP), only to receive periodic time-based pricing revisions to attract more buyer attention.
After numerous revisions, the price of each vehicle edges closer to the LiveMarket KMAP — where they are eventually sold, but not without incurring significant daily holding costs that impact gross profit.
Fortunately, LiveMarket takes the difficulty out of manual market analysis and empowers dealers to immediately recognise where their stock sits in relation to competitor stock items on carsales.
Further improvements to LiveMarket are also on the way. “Soon, we will be better able to highlight the importance of pricing stock correctly, whilst also showing how important controlling costs are through the entire sourcing, buying and selling process,” explains Matt Glenister, New Product Development Manager – Dealer at carsales.
“This will assist LiveMarket users to get a better understanding of how pricing and costs go hand-in-hand — helping to maximise each opportunity so that a faster annual stock turn becomes a key metric of business success,” he added.