Why “Name-Your-Own-Price” Model Works in the Auto Industry
Name-Your-Own-Price (NYOP) is a pricing strategy that lets buyers decide the final price they will pay for a product. The NYOP acts as a reverse auction where the sellers bid their products for the buyer’s price. The buyer then chooses which product to get. Companies now use NYOP for online transactions to offer various products, including hotel rooms, flights, car rentals, and new car deals.
One of the most famous companies that implemented the Name-Your-Own-Price strategy was Priceline. Priceline is an online traveling agency that helps customers purchase the best deals for travel-related purchases such as flight tickets, hotel accommodations, and car rentals. They were among the first to use the NYOP model, and while they skyrocketed when they first came out, they eventually started to lose customers and fell off.
One reason why the strategy failed for Priceline was that Priceline’s competitors offered more straightforward transactions through fixed prices. Priceline also attempted to expand too much and too quickly by offering its services using NYOP. Priceline’s strategy and expansion led to the investors losing confidence and the company’s stock dropping dramatically. The hassle of submitting bids and resubmitting them also took a lot of time from customers. Priceline eventually dropped the NYOP strategy and started offering their services at a fixed price.
The Name-Your-Own-Price model is now being implemented in the auto industry. Companies like CarBevy use this strategy mainly to make transactions much more efficient, customer-friendly, and haggle-free. Even though the NYOP model failed for Priceline, the strategy is working in the auto industry. Here are some reasons why the Name-Your-Own-Price model works in the auto industry.
Cars are an essential commodity in today’s society. Allowing customers to name their price helps people buy a car at their preferred price and local car dealerships make a sale. Southern Californians or people elsewhere in the States understand that they need a consistent and efficient mode of transportation; a car. The only problem is that cars tend to be costly purchases where car buyers are forced to compromise and get a car they don’t want. With an NYOP model, car buyers can buy new cars at a price they can afford.
Freedom to Choose
As mentioned before, the NYOP model lets customers pick the car they want to purchase that fits the buyer’s budget. Not only will customers be able to choose the car they want but also the features that go along with it, something that isn’t possible when car buyers compromise and buy a particular dealer’s cheapest car. CarBevy works by letting the car buyer decide what car they want and how much they want to pay and then sending the buyer’s offer to CarBevy’s network of partnered dealers.
Since purchasing a car is a huge investment, car buyers will have to fill out voluminous paperwork and get stressed out when they haggle. An NYOP model reduces the stress that car buyers experience by letting car dealers offer their cars at the buyer’s price. The car buyer won’t get stressed out haggling to get a car at a reasonable price. Once the buyer selects which car to buy, they will only need to deal with the paperwork with little to no other stresses.
It is a good thing that we have companies like CarBevy. They are dedicated to providing customers with an easy and personalized way of finding the best car deals. CarBevy is currently in San Diego, CA, and support brands like Toyota, Kia, Ford, and Hyundai. They will be expanding into other cities and brands shortly, so what are you waiting for? Visit their website now at CarBevy or contact them at 832-279-3806 to learn more.