The Wrong Traffic

Is there such a thing as "bad traffic" in your dealership? Six months ago if you asked dealers that most would probably reply with an emphatic "no!" Just having bodies in the door to keep the salespeople off the roof was refreshing for a lot of stores. Things are changing though, the public is loosening up and sales numbers are up across the board. I'm hearing from more and more clients that things are just better, they are busier and the mood has certainly lifted.

So let's be honest for a minute. Has your dealership ever put on a big event promotion, probably involving a gift for coming in, that's brought in hundreds of people? How many sales were made and what was the gross? In the last three months I've worked with one store that had 485 ups and sold 3 cars and another that averages right around 300 ups every month and grosses between $150k and $200k like clockwork. What's the difference?

Probably a lot of things.

I think the bottom line comes down to the sales staff and management attitude. Before doing the big dog and pony show assess your staff, do they know how to take a gift getter and turn them into a buyer? Are they tenacious enough to work 10 leads hard to find the one that might buy today?

Do you or your management team believe it's possible to "take a gift grabber to a thinker to a looker to a buyer (to quote Mr. Tim Ditonto of Ditonto & Associates)?"

If the answer to these questions are "no" then let's talk about alternatives to the high traffic events, OR about helping prepare the team for this new type of sale.

Every store has its own culture, sales process and image. Be sure the marketing you are putting out there matches your store. Give me a call - let's talk about your store and put together a personalized solution.

Consumers Willing to Spend More on Autos

Some good news is starting to leak out as we head into the Fall selling season. Kelley Blue Book (www.kbb.com) released a Market Intelligence Study earlier this month on the automotive market post clunkers. In the study they found the amount consumers are willing to spend on new vehicles actually increased after the national incentive program funded by the government. In August 2009 consumers reported they would spend $25,600 on a new vehicle, a number that has increased $1,671 to $27,271 in late September. The report also noted that customers are saying they are not waiting on incentives to purchase. This may be good news as many dealers feared Clunkers would have a similar consequences to the initial 0% offerings early in the 2000's or Employee Pricing later on. After these programs ended it seemed the public just started waiting until the next big discount from car manufacturers. I can report on the Diva front that new car mailers are up. Currently the best sales results are coming from Buyback letters sent to dealer databases or year/make owner lists we supply. Let us know if you'd like info on these. 317.644.5729, sthompson@triauto.com.

Marketing to TODAY's customer

Who is today's customer to the automotive market? When I say "today" that's what I mean. Who is shopping for vehicles in October? Obviously the market has been on an extreme landslide since last week, and everyone I talked to assumes that means no one is buying cars. But they are, the only difference is--their reasons have CHANGED. Has your marketing changed to target these "new" buyers? Old buyers There are still people with leases running out, kids turning 16, needing a winter vehicle and having vehicles break down. These are not the people that direct marketing stirs to action. If they get a piece from you during this time that increases the likelihood they'll shop at your dealership instead of others, but it's not going to stimulate them to start the hunt. New buyers So who is the new buyer? People are concerned about their retirements and nest eggs, and just plain how much they are spending these days. Gas seems to have become less of the issue and the general budget at home has taken center stage. So how can the automotive industry help during these struggling times? You can help by getting them into a newer, more efficient vehicle to decrease maintenance. You could hook them up with a more gas friendly car than what they currently have in the driveway.

But really, let's be honest it comes down to a monthly payment. You could help them cut their monthly payments in HALF or more.

Two, three, four years ago for many people a $500-$700 car payment was something that made sense, now all of a sudden it looks crazy. These are the people you can help, and they aren't just the "bottom feeders" these are people with good credit, good jobs, and possibly even some cash down. These are the people that are reasonable & responsible that are realizing a BMW isn't as important as some cash in the bank for security. At Tri-Auto we're very focused on keeping up with the times and marketing to TODAY's customer. We just came out with our "Bail Out" piece that focuses on how you are helping "bail out Main Street while the government bails out Wall Street." If you want to check it out let me know. Otherwise, just be sure you are changing your marketing as quickly as the times are--it IS possible to "stir the market" with the RIGHT message.