Traditional RV pricing methods are outdated and inefficient. Dealers often rely on manual processes that involve checking market conditions, conducting a bit of analysis, and then sticking a price on the vehicle. This approach is not only antiquated but also lacks the data-driven precision that modern businesses need. In short, it leaves a lot of room for improvement.
Unlike manual methods, AI pricing uses a vast array of factors to determine the most accurate price. This includes variables like weather, local and national events, inflation, home prices, and even food away from home indices. These factors are fed into machine learning models, which then analyze the historical pricing of similar RVs and deliver an optimized price. This approach is not just data-driven; it’s intelligent.
AI pricing is already revolutionizing industries like airlines, hospitality, and e-commerce. These sectors have adopted sophisticated engines that process thousands of variables to regularly update prices. The key advantage? AI can identify trends and factors that human judgment might miss, leading to more accurate pricing decisions. However, AI pricing isn’t always easy to explain—it’s about trusting the data over instinct.
Adopting AI pricing requires a cultural shift. Industries that have successfully implemented AI have learned to trust the machine’s recommendations, sometimes over human discretion. This transition may be slow, but it’s essential. Take, for example, a story from the airline industry: after a blizzard, human attempts to optimize scheduling failed until they blindly followed AI’s recommendations—resulting in a swift return to normal operations.
AI pricing allows you to consider a wide range of factors, close deals faster, maximize profits, and avoid stock accumulation. These are the common goals of pricing in any industry, and the RV sector is no different. With AI, you can adapt more quickly, be more nimble, and ultimately improve your bottom line.
The RV industry is ripe for AI adoption. However, the most significant challenge is not the technology itself but the cultural shift required to embrace it. Dealers, owners, and managers must learn to trust AI’s recommendations, even though it may initially seem counterintuitive. While piloting AI pricing, you may encounter some challenges, but over time, it will save you countless hours and help you make more informed decisions.
No matter how accurate your pricing is, it’s useless if your RVs aren’t discoverable. A well-designed, responsive website with high-quality photos and AI-enabled video walkthroughs is crucial. Remember, 70% of people research online before visiting a store. Make sure your units are easily discoverable online to convert those virtual visits into real sales.
The RV industry must embrace AI pricing to stay competitive. While it requires a shift in mindset, the long-term benefits far outweigh the challenges. By adopting AI, you can make smarter pricing decisions, optimize your inventory, and ultimately, drive more sales.
Everything you need to close more deals, boost profits and stock effectively.
Transforming RV Dealerships with AI Powered Pricing