Pricing Definition

[ibdefaria]

Can some dealer please explain to me what each pricing means?

MSRP
Selling Price
Invoice
Balance
Book value
Sticker price

Did I miss any?

I've seen many dealers using these fields in different ways and just wanted to know what they're really supposed to be.

 

[Jerry Thibeau]

Can some dealer please explain to me what each pricing means?

MSRP
Selling Price
Invoice
Balance
Book value
Sticker price

MSRP = Manufacturer Suggested Retail Price or what a lay down would pay. If not sssure what the term lay down means, you should just pay this price and smile.

Selling Price = The price a customer agrees to pay after negotiating.

Invoice = What the dealer paid, but there could be hidden hold back money that could in fact make the invoice price even lower.

Balance = 1. You give a deposit and what remains is the balance. 2. Amount that needs to be paid off on the trade.

Book Value = Imaginary numbers made up by third party companies to determine the value of your trade. Try selling your trade to one of these companies if your dealer does not give you a number you like.

Sticker Price = The same as MSRP or what you should pay the dealer if you just won the lottery.

 

[ibdefaria]

Thank you very much!

 

[yagoparamo]

MSRP = Manufacturer Suggested Retail Price or what a lay down would pay. If not sssure what the term lay down means, you should just pay this price and smile.

Selling Price = The price a customer agrees to pay after negotiating.

Invoice = What the dealer paid, but there could be hidden hold back money that could in fact make the invoice price even lower.

Balance = 1. You give a deposit and what remains is the balance. 2. Amount that needs to be paid off on the trade.

Book Value = Imaginary numbers made up by third party companies to determine the value of your trade. Try selling your trade to one of these companies if your dealer does not give you a number you like.

Sticker Price = The same as MSRP or what you should pay the dealer if you just won the lottery.

Invoice = Hold back is not hidden... hold back is an exchange of money in a B2B relationship based many times in volume of sales, incentives, sales goals, etc and is no ones biz but the owner's. I'm sure that if Starbucks calls tomorrow and buy double the coffee Brazil will arrange a better deal for them and you will not know about it.

Book Value = OR a number, whether you like or not, based on certain parameters that allow us to put a value to used cars based on certain rules such as mileage, year, options, etc. Just like gold, right? Or currency, right? But it sure helps to figure things out.

Sticker Price = OR if the dealer has a certain limited edition model (Ford GT40), even though not a LTD edition they just don't produce any of them (Toyota Land Cruiser), you want a rare one (F250 Diesel MANUAL--YES!), etc, etc.

 

[john.quinn]

As seen by the consumer:

MSRP -- that thing on the window that means nothing
Selling Price -- that number on the paper I know means nothing because the real numbers are hidden among all these others
Invoice -- fake number dealers say is a good deal
Balance -- fake number my bank says I borrowed but I really paid more
Book value -- the real numbers for my trade that I found on the internet, but no dealer will give me
Sticker price -- see MSRP

Car dealers are all crooks....

 

[yagoparamo]

As seen by the consumer:

MSRP -- that thing on the window that means nothing
Selling Price -- that number on the paper I know means nothing because the real numbers are hidden among all these others
Invoice -- fake number dealers say is a good deal
Balance -- fake number my bank says I borrowed but I really paid more
Book value -- the real numbers for my trade that I found on the internet, but no dealer will give me
Sticker price -- see MSRP

Car dealers are all crooks....

Well... I don't think that's right. MSRP means, depending on the brand, what they made out of it. Lexus and BMW still bring MSRP in many markets.

Balance IS the real amount you borrowed. To own the car you must pay that off.

BUT-

What I disagree the most is the comment that: "dealers are all crooks".

I don't like it even as a joke because it publicly incentives that sentiment among people that read this blog. It is time we change our jokes and attitude; getting customer reviews, etc is not it, how we feel inside about what we do is where everything starts.

 

[ed.brooks]

Well... I don't think that's right. MSRP means, depending on the brand, what they made out of it. Lexus and BMW still bring MSRP in many markets.

Balance IS the real amount you borrowed. To own the car you must pay that off.

BUT-

What I disagree the most is the comment that: "dealers are all crooks".

I don't like it even as a joke because it publicly incentives that sentiment among people that read this blog. It is time we change our jokes and attitude; getting customer reviews, etc is not it, how we feel inside about what we do is where everything starts.

Yag, you are such a tight ass. Perhaps sarcasm doesn't translate, but the lil' winky guy should have been a clue

 

[joe.pistell]

Yag,

Find someone in your office to translate for you. You need help with nuance.

[h=3]nu·ance/ˈno͞oˌäns/
[/h]

Noun:

A subtle difference in or shade of meaning, expression, or sound.

 

[yagoparamo]

Yag, you are such a tight ass. Perhaps sarcasm doesn't translate, but the lil' winky guy should have been a clue

No I got that, I know that was sarcasm and I do enjoy it myself. JQ has a great mind to find a diamond in a pile of empty words. But there are more people reading this than JQ, you, and me. I have a bit over 160 employees and I fight demeaning comments about dealers all day internally. It promotes, even as a joke, the wrong culture.

I have recently been involved in a lawsuit against a dealer (they brought me in since we produced their window labels) because back in 2006 they had in their window label" "This car was selected for quality and value" so someone is successfully making an argument in court that the statement is bogus and untrue. What you write is what it means to many people, no ambiguity given in a court of law for example.

So without any personal aim to JQ whom I consider a very talented mind, I will raise awareness about this issue every time I can.