AUTOMOTIVE ADVERTISING & MARKETING

Why We Recommend TV Advertising

Why We Recommend TV Advertising

JKRAdvertising / Automotive Advertising, TV Advertising /

January 20, 2015

Here are the reasons why we recommend TV Advertising. The bottom line is, TV is the most powerful advertising source available. Businesses of all sizes – auto dealerships included – use TV Advertising to build their brands, attract customers, increase credibility and make sales!

Dealers Still Bullish on TV Advertising

Many of today’s automotive dealers understand the value in advertising on TV. They realize television is the perfect source to present their products and services to the public, as TV ads reach a large number of people in a short period of time.

TV Advertising is Ideal for Auto Dealers

Today’s consumer is watching TV more than ever before. Because of this, savvy auto dealers use part of their budgets on TV advertising campaigns, to firmly establish themselves as a major player in their communities.

TV Advertising Campaigns = Big Profits

Dealers appreciate the value they receive from their TV advertising campaigns. A well-thought-out TV ad highlights the dealership’s products and services in a way no other advertising media can do.

Dealers Know its Power

When executed properly, an automotive dealership’s TV advertising campaign can pay big dividends. TV advertising is the most effective way to show the benefits of an auto dealer’s products and services, while reaching the largest possible audience.

Beneficial for All Dealers

TV advertising is one of the best ways for an automotive dealership to reach consumers in their area. They benefit from the opportunity to promote their products and services to a large number of customers at once, as well as TV’s ability to help them build rapport with those in the viewing audience through repeated exposure to the dealership’s commercials.

JKR Automotive Advertising: We Move Cars.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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