Is your sales department excited to sell the loss leader unit?
In some cases a dealer will advertise a loss leader for a loosing profit in attempts to drive traffic to the store.
When the customer shows up to purchase this vehicle, does the sales consultant show this vehicle with the same enthusiasm as they would on a profit vehicle?
What I'm getting to, has your sales department bought into your ways of advertising or is it costing you more money than you realize?
Food for thought while enjoying a carbucks... B.C.
Replies to This Discussion
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Permalink Reply by Joe Brunner on
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Why spend 5k - 8k per week in the paper to sell a $1500.00 loser, one at this price and then risk upsetting the other customers who come in and want to buy a similar car for the same price. Instead of fishing for buyers when they are not ready, be available on as many web sites as possible when they are ready to buy. It's cheaper and you will get better customers. Great post Bobby!
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Permalink Reply by Bobby Compton on
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I couldn't agree with you more brother Brunner! It seems that in advertising, price is not the hottest selling point, as quality and relationship are!
Internet is an excellent source, and combined with T.V. it's over the top with results!
Thanks for the outstanding input as always my brother... -
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Permalink Reply by NANCY SIMMONS on
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Great post Bobby! Wow! Dealers and Managers are so convinced that it is all about price with their customers that "price" is given more focus that training, advertising, taking care of your already loyal client base. These same dealers and managers, by doing so, attribute to that very price conscious culture being formed!!! Of course there are those who "get it" and those who don't!
I am friendly with a female dealer who spends a very minimal amount on conventional advertising...close to $0.00. She does enjoy a very visible presence on the web, but her new and used car policy account is out of sight! Why? She empowers each and every employee in her dealership to maintain a budget to afford that captured client the proper "fix" to make a negative issue or experience "right"! Also, when that pre-owned customer comes back and asks for floormats, an extra key, etc... They get... "Absolutely, no problem...come with me and let's get that taken care of!" It is pure logic and common sense! Thanks Bobby and Joe for such refreshing and eye-opening comments here! -
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You're absolutely right Nancy!
It's extremely important to nurture ones existing client base with top notch customer service and satisfaction.
The manufacture monitors a dealer with CSI scoring to insure that a new car customer is handled appropriately. The same quality control should be applied to a used car customer!
Many dealers like the one you speak of sets the standard of what needs to be the norm when it comes to taking care of existing client base.
Without any question, advertising is a must to grow and expand! The difference in how a dealer advertises and the messages created will determine the amount of future opportunities and the culture of the sales department.
Advertising is a team effort that truly takes buy in from everybody, and that includes the well trained sales staff.
Two simple steps to success:
#1 Drive traffic
Effective Advertising
Prospecting
Referral Question during and after the sale ETC
#2 Handle the traffic
Effective Training
Team Unity
Sales staff on the same page!
Outstanding input Nancy... B.C.
NANCY SIMMONS said:Great post Bobby! Wow! Dealers and Managers are so convinced that it is all about price with their customers that "price" is given more focus that training, advertising, taking care of your already loyal client base. These same dealers and managers, by doing so, attribute to that very price conscious culture being formed!!! Of course there are those who "get it" and those who don't!
I am friendly with a female dealer who spends a very minimal amount on conventional advertising...close to $0.00. She does enjoy a very visible presence on the web, but her new and used car policy account is out of sight! Why? She empowers each and every employee in her dealership to maintain a budget to afford that captured client the proper "fix" to make a negative issue or experience "right"! Also, when that pre-owned customer comes back and asks for floormats, an extra key, etc... They get... "Absolutely, no problem...come with me and let's get that taken care of!" It is pure logic and common sense! Thanks Bobby and Joe for such refreshing and eye-opening comments here! -
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Permalink Reply by Craig Lockerd on -
Here is the way I used to "Price Advertise" in the paper. We took a picture of each client on delivery and aksed them how much they feel they saved over their next best deal buying from our dealership, and where they lived.They would sign an affidavit that read.. I _____ wish it to be a matter of public record that I saved $$$$$ over my next best deal buying from ______.
What happens here is that a, people see pictures not prices...people like to FEEL they got a great deal so people would say crazy stuff like I saved 2500 on my malibu and there wasnt nearly that much mark up, so people in market would look at all the pricing other dealers were running and then see real people in my ad and they got a better price than all the other dealers were offering....the customers did the price "leading" -
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Wow!!!! What a fantastic idea, Craig...I know when I breeze through the local paper, I look at pictures of people and obituaries...When I look at car ads, it is just to read the disclaimers and marvel at how misconceptive dealers can be and sooo crafty!
Craig Lockerd said:Here is the way I used to "Price Advertise" in the paper. We took a picture of each client on delivery and aksed them how much they feel they saved over their next best deal buying from our dealership, and where they lived.They would sign an affidavit that read.. I _____ wish it to be a matter of public record that I saved $$$$$ over my next best deal buying from ______.
What happens here is that a, people see pictures not prices...people like to FEEL they got a great deal so people would say crazy stuff like I saved 2500 on my malibu and there wasnt nearly that much mark up, so people in market would look at all the pricing other dealers were running and then see real people in my ad and they got a better price than all the other dealers were offering....the customers did the price "leading" -
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Permalink Reply by Craig Lockerd on
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....yep,worked pretty well
NANCY SIMMONS said:Wow!!!! What a fantastic idea, Craig...I know when I breeze through the local paper, I look at pictures of people and obituaries...When I look at car ads, is is just to read the disclaimers and marvel at how misconceptive dealers can be and sooo crafty!
Craig Lockerd said:Here is the way I used to "Price Advertise" in the paper. We took a picture of each client on delivery and aksed them how much they feel they saved over their next best deal buying from our dealership, and where they lived.They would sign an affidavit that read.. I _____ wish it to be a matter of public record that I saved $$$$$ over my next best deal buying from ______.
What happens here is that a, people see pictures not prices...people like to FEEL they got a great deal so people would say crazy stuff like I saved 2500 on my malibu and there wasnt nearly that much mark up, so people in market would look at all the pricing other dealers were running and then see real people in my ad and they got a better price than all the other dealers were offering....the customers did the price "leading" -
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Permalink Reply by Paul Hardy on
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Here's me being the devils advocate. Hell no I'm not selling the ad car! When I came into the biz a mini was $37.50 I saw them as a waste of time. What if a "real deal" came in and I was wasting my time with this mooch. And it was espcially bad if they ask for someone else and it was going to be a split! It was very hard to get motivated at all. I did eventually come to uderstarnd that even if the dealer did not advertise, I still got some mini's. They all do ad up when you add them to your monthly bonus and incentive programs. Sometime you may hit a single,but at least you get a hit. And you never know what home run you may get from the repeat or referal.
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Permalink Reply by Glenn Wilkins on
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Thats true Craig...I know a dealer that NEVER advertises new car prices...only testimonials with the pics of customer taking delivery and a short story of where they live and money they saved. It works great!!!! Great topic BC !!
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Permalink Reply by Craig Lockerd on
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nice
Paul Hardy said:Here's me being the devils advocate. Hell no I'm not selling the ad car! When I came into the biz a mini was $37.50 I saw them as a waste of time. What if a "real deal" came in and I was wasting my time with this mooch. And it was espcially bad if they ask for someone else and it was going to be a split! It was very hard to get motivated at all. I did eventually come to uderstarnd that even if the dealer did not advertise, I still got some mini's. They all do ad up when you add them to your monthly bonus and incentive programs. Sometime you may hit a single,but at least you get a hit. And you never know what home run you may get from the repeat or referal. -
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