Comparing Faxed Dealer Price Quotes
Once your 24-hour RFQ response window is closed, it’s time to compare the
responses.
Here’s what to look for:
- Any exceptions or missing line item pricing
- Best pricing on base car model
- Best pricing on all options
- Total of all fees
- Total price quote - complete
Here’s a capsule overview:
Exceptions - A dealer may take exception to your quote format,
particularly in the fee area. If they haven’t agreed to the fee structure you’re
imposing on all dealers, then their quote isn’t a true match to the others.
Missing line item - Mistakes happen. Make sure all requested line items
actually contain prices. You may need to phone for clarification if some lines
are not priced.
Base car price - The base model is priced separately for a reason and
that’s to get a higher discount on the options. Make sure that the base car
price matches or beats your best online price. Some dealers may ignore your
format and only give one price.
Option pricing - Online dealer invoice pricing for options doesn’t offer
much of a discount and that’s just wrong. Option pricing has incredible profit
margins. You should be gaining at least a 10% extra discount on your options
compared to your online quote.
Total fees - Dealer responses here can vary wildly. The guy with the best
discount on the options may have the highest fees. Remember that most fees are
just a profit center for the dealer. Never agree to pay inflated fees just
because they ask. Just say NO!
Total price - You’ll find a small group of dealers have pricing that’s
consistently better than the rest of the pack. There may be one that’s way
better than all the others, but usually there’re three or so that are very close
together.
Summary spreadsheet
We’ve included a spreadsheet so you can enter each quote in its own column. That
will allow you to review everything at a glance.
You’ll be able to compare the individual line item pricing at a glance. Plus,
you can see clearly which dealer offers the best deal on the base price, on the
options, on the fees, and most importantly, on the whole enchilada.
Plugging everything into a spreadsheet will also catch any math errors within a
dealer’s quote. Just because somebody’s bottom line says they’re the lowest cost
provider doesn’t mean that’s necessarily so. A simple math mistake or a data
entry error from changing a line item, but not updating the total, can create
the wrong impression.
Be sure to double check your own data entry for accuracy as well. You can also
use the spreadsheet data sorting capability to rearrange your dealer list by
whichever pricing item is most important to you.
If you don’t have a spreadsheet program, just use the printed form and handwrite
in the information.
Last Step
Now it’s time to do one more thing - get a “best & final” price from your top
dealers.
Next: Getting Best & Final Pricing Previous: Fax Campaign
