AUTOMOTIVE ADVERTISING & MARKETING

Not Ready

What if They’re Not Ready to Buy Today?

JKRAdvertising / Automotive Advertising Advice /

August 6, 2015

In addition to customers eager to purchase cars today, you also need to advertise to those who are not ready just yet. If you do it the right way, you might trigger something in the mind of a person who knows they will be in the market for a vehicle in the near future – or if nothing else, you can begin planting a seed in the mind of individuals or families who will someday need a new car, truck or SUV (and of course, that’s almost everyone).

Let’s examine the mindset of someone not ready to buy, but almost there. There’s a good chance they’ve recently had a major auto repair bill or two. Perhaps their vehicle just passed the 100,000-mile mark. Maybe their new-car warranty just expired. It could even be that their car doesn’t look or perform like it used to. Whatever the reason, at this stage of the game the person realizes they’re going to need a new vehicle sometime in the future.

Not Ready Yet, But Soon!

They know they’re not under any pressure to buy a vehicle today, but all of a sudden a car dealership’s advertisements are far more relevant to them than they were, say, six or eight months ago. And when even more time passes, there will come a time when they have a major breakdown, a long road trip coming up, a safety issue or other concern that takes them over the edge and makes them say, “That’s it. It’s time to get a new car!” (It could even be something good, like a bonus or raise at work.)

It happens at different times for different people – and it could be for any number of reasons, but it does indeed happen.

If you’ve been consistently advertising to a person like this, where do you think they’ll go? Where do you want them to go?

So even if they are not ready today, proceed as if they will be ready tomorrow!

Complimentary Advertising Review

Here’s your chance to get a sample of JKR’s vast abilities. Call Eric Tigner at (321) 397-0777 today and ask him to prepare a free advertising review for you. JKR will evaluate your current campaigns – along with those of the competitors in your market – and provide you with our expert feedback.

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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