AUTOMOTIVE ADVERTISING & MARKETING

Objectivity

An Automotive Advertising Agency Offers Objectivity

JKRAdvertising / Automotive Advertising Advice /

October 7, 2015

An automotive advertising agency is important for many reasons, but this blog is going to focus on the fact that retaining an agency ensures that you have total objectivity. Well, there is one caveat to that … you can’t hire an agency full of “yes men” and expect to have objectivity.

The best automotive advertising agencies bring a unique approach, and they aren’t afraid to tell their client when they disagree with something (and back up their statement with good reasons and research). This typically doesn’t happen when a dealership’s advertising is done in-house – and it is not difficult to see why.

Here’s our point: auto dealers are heavily involved in their company, its products and the goings-on in their media market(s). How can anyone be expected to look at things objectively in that light? So … while the in-house agency will present the dealer’s products in the way they see them, a savvy automotive agency like JKR Advertising will show the products in such a way that it’s how the consumer sees them – and they respond accordingly.

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Ask around. We have about 115 clients in more than 80 markets nationwide, so even if you haven’t heard of us, someone you know has. We are always looking to take on a few new clients, and whether you’re a big dog or a small guy … whether you’re in a large or small market … whether you own multiple stores or just one … you are not too big or too small for JKR.

Find out if we have a presence in your market by calling Eric Tigner today at (321) 397-0777. If we don’t, we’ll send you a FREE report that will give you the most up-to-date information on your market. We’ll even give you a complimentary evaluation of your current advertising efforts.

The bottom line? Objectivity does matter in automotive advertising, and JKR’s real-world automotive advertising experience means everything to our clients.

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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