We’re helping by providing great data to the dealers — real-time data, not just the old way the books were done that were just based on averages over many months. This is really real-time data. We’ve got AI powering our data and helping those dealers with their pricing. More and more dealers out there are starting to use the ACV market report, and we’re starting to get our data into more places. to help dealers and consumers understand the new value for that trade. And if they price it right, Nick, then they won’t have a hard time selling in the wholesale market. because they’ll have priced it right to the consumer. So the combination of our real-time market data, how we then take the market data plus the condition assessment of that vehicle is a unique value that we think helps dealers in that declining market.
As long as they’re price right to the consumer, they’ll be fine. And we’re here to help them.
Bill Zerella: And I think — yes, Nick, I’ll just add a couple of points here. So our guidance assumes that prices come down in the double digits for the second half. So we’ve baked that into our assumptions. I would also add that you’ll notice that we actually saw in our marketplace and increase in our GMV per unit in Q2 versus Q1. And that was attributable to an improvement in mix on our marketplace. So we’re not assuming that, though, going forward. We are assuming there is a steady decline in the second half.
Nick Jones: Really helpful. Thanks George. Thanks Bill.
Operator: Our next question comes from the line of Eric Sheridan with Goldman Sachs.
Eric Sheridan: Thank you so much for taking the question. I want to come back to two themes from the Analyst Day that you touched upon in your prepared remarks today. Can you talk a little bit about conversion longer term? You’ve opened up sort of a gap vis-a-vis the industry. And I want to understand what you see as key to either maintaining that gap or even widening as we’ve talked about over the medium to long-term, when you think about conversion. And then also pricing. You took price last year. Any updated thoughts on elasticity over the long-term in terms of platform pricing and maybe those two concepts are sort of broadly fed into each other, but just wanted to get any updated longer-term thoughts. .
George Chamoun: Yes. Thanks, Eric. We spend a lot of our resources focused on conversion and focused on helping both sellers and buyers. And just to remind ourselves, it’s both the benefit to the seller and the buyer to get conversion rates up. Sellers because obviously, they’re selling more of their inventory quicker, faster and buyers because they’re not wasting their time. bidding on cars that don’t have health selling. So beyond the model itself, it’s really important for the end customers. . On the seller side, it’s several things. So you’ve been hearing us talk about auction formats. You can hear us talk about these conceptually the different lanes that were different vehicles are selling in different ways. We’re investing quite a bit on this mantra of one size doesn’t fit all, and each vehicle should be sort of merchandise the right way.
You’ll hear us talk about that more and more over the next sort of six to nine months. We’ve been putting a little out there at a time as we’re building, but we’ve got a pretty significant effort on our merchandising strategy. And we hint it and then I really talk about it more when we fully allow [ph]. So more to come on merchandising, but that’s one key thing. So think merchandising is making sure buyers see the vehicle. — right? And not that it just came up for 20 minutes, it wasn’t seen and we’ve got a pretty significant effort, a lot on AI and matching this merchandising to the said buyer. So we’ve got all this rich data we’ve got all these buyers signed up around the country and really matching sellers and buyers. So we’ve got a tremendous effort on matching.
