Too often in business, people tend to think in terms of absolutes. “If I do this, that means I am this.” This is especially true when it comes to one-price selling platforms in the auto industry. One-price is hard to execute and achieve success with if you are not CarMax, but that does not mean you cannot make the one-price strategy work for you. The trick is to deliver the one-price buying experience without flying the one-price flag.

The first part of executing the strategy requires an understanding of what one-price is really about. For the consumer, one price is not 100 percent about price. The one price mentality is 20 percent about fair price and 80 percent about a quick, no-hassle car buying experience—emphasis on quick. If the dealer sees one-price as solely being about one-price, he or she is looking at the concept in absolutes and that is an absolute path to disaster. How do I know this? I’ve purchased six cars in my lifetime from various dealerships, and not one time was my decision based solely on price. I’m an average negotiator, so I’m quite sure I paid an average price—not the lowest price. In fact, most times I bought at the first dealership I went to, providing they followed the 20/80 rule. For me, it was always about a fair price combined with a quality dealership experience. The quicker I received the combination of the two, the quicker I bought the car.

So how does a dealer tap into this? Give people what they want quickly and stop being afraid your price won‘t be the lowest. Start thinking about quickly quoting one fair, non-negotiable price—and make it an “out-the-door” price. If you tell the car buyer the car costs $18,000 but you didn’t include the trade-in, taxes, or paperwork, the buyer already has one foot out-the-door. Why? The price is not real. It doesn’t let them know how many dollars are leaving their pocket and going into yours. That scares the heck out of car buyers. Now they have at least eight other buying variables to be thinking about, including going to another dealer. They do not want to go to another dealer; they want to buy a car. That’s why they came to your dealership in the first place. Why do you make it so hard for them to say yes? Be a one-price dealer by following the 20/80 rule - and watch your conversions go through the roof.

Mike Marini is the founder of Cars Out The Door, a company that pioneered negotiation-free, click to buy technology with no dealer lead fees. Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more information and to sign up for a free dealer account, please visit www.carsoutthedoor.com.

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