The web has definitely changed the complexity of price modeling as we know it.

Customers today have greater access to price comparisons than ever before.  “In the good ‘ole days,” customers had to drive around town to compare prices of automobiles.  Families would pack into a vehicle early Saturday morning after a great breakfast and visit dealership after dealership searching for the right vehicle and the right price.

Fast forward a few decades later.  Customers start shopping by newspapers.  Every Saturday and Sunday mornings, paperboys wheeled their bikes around their neighborhoods launching news rolls towards driveways and front doors.  Hopefully the landing was not mom’s new bed of flowers, the pet’s recent bowel movement or through the garage window.  Customers would unravel their information bundle, review the new deals, call a few places to narrow down their choices, pack their families into the car and visit a few dealerships looking for the best price.

Fast forward a few years later.  Customers listened to the radio for any new specials or deals available.  The advantageous dealership owner created a beautiful picture of the vehicle the customer should come out and by this weekend.  Prices will not be lower, the quality of the vehicle will not be better and after all, why not now?

Fast forward a few months later.  Customers start shopping by television.  Dealerships craft extravagant and glitzy commercials trying to interrupt the customer’s mind-numbing experience watching the boob-tube.  The commercials are built more for the dealer’s idea of what drives the customer to the dealership, then by truly recognizing the fact that the commercial has interrupted the customer’s peace and stability of blissful non-thinking time.  Unless the customer views the commercial on the weekend, chances are, the customer does not act.  However, enough customers must have acted because the commercials “worked,” according to most dealers.  Traffic was always up when commercials ran.

Fast forward a few days later.  Customers start shopping by the internet.  Every dealership has a website, but only a few dealerships build their websites with their customers in mind.  Plenty have the glitz, glamour and streaming video, but few have accurate vehicle information, proper pictures and pricing information that drives the online consumer to determine which dealership they will visit.  A customer can visit twice as many dealerships today in the comfort of their own home than they could driving from lot to lot a few months ago.

So what differentiates a dealership today in web 2.0?  Is it convenience?  No.  Is it price?  No.  I believe it is service.

The customer of today will pay extra to experience a wonderful, personalized experience.  Gone are the mass messages interrupting the consumers focus on a television show, interruptions during a radio show and even unsolicited banner ads on websites.  Service originates from the relationship the dealership has with its previous and potential customers.  Service originates when the customer permits the dealership access to their world.  The customer craves personalization and originates the contact–the dealership services the need.

Technology has permitted much greater access and personalized experiences for the consumer.  The dealership must take advantage of this yesterday.

The dealerships that fail to do this will be gone tomorrow.

Customers will click right by them.