The German company DiCoSo has created electronic digital price tags, which are already in use by some American auto retailers
Since the passing of the 1958 Automobile Information Disclosure Act, all new cars in showrooms have been required to prominently display pricing, equipment details, and delivery charges. This familiar “window sticker,” also known as the Monroney after its sponsor, Senator Mike Monroney, is now being phased out in favor of a digital version.
The German company Digital Communication Solutions (DiCoSo) developed its first digital price tag system in 2018 and has been steadily implementing it across European auto retailers. According to DiCoSo, there are now 60,000 digital price displays in 240 dealerships across Europe, as reported by Auto News.
DiCoSo is now beginning to enter the U.S. market, having already secured a deal with a Subaru dealership in Salt Lake City, according to Auto News. The company aims to install 10,000 to 15,000 displays in U.S. dealerships during its first year, with plans to expand to 50,000 in the coming years.
Some systems allow customers to interact with the digital information, such as generating finance quotes, while dealers can use the built-in GPS modules to quickly locate their vehicles.
It’s easy to see why dealers would be drawn to this technology. It enables them to quickly update pricing, equipment details, and EPA data across their entire showroom inventory with just a few keystrokes, potentially saving large dealerships many hours each year.
However, other retail sectors are also adopting this technology, raising concerns that it could drive up costs for consumers, according to The LA Times. The worry is that the ability to instantly change prices could lead to the use of dynamic pricing—a strategy used by airlines and event promoters to adjust prices based on demand.
