AUTOMOTIVE ADVERTISING & MARKETING

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Want to Know What Customers are Thinking?

JKRAdvertising / Automotive Advertising, Automotive Advertising Advice /

September 21, 2016

what-customers-are-thinking If you’ve always wondered what customers are thinking but don’t have any definitive answers, read on. A recent Edmunds “Car Shopping Trends” report detailed what is going through their minds before and during the purchase process. The survey polled 500 in-market car shoppers across the United States and here are some of the most important highlights.

What Customers are Thinking

∙ Almost everyone (96%) indicated that they put at least some effort into getting a good price on their cars, but cost isn’t the only major factor leading to a purchase. In fact, 64% say the combination of a good price and finishing the transaction quickly is what will result in their complete satisfaction.

∙ Nearly nine out of every 10 shoppers have completed some degree of online research prior to visiting a dealership facility. The takeaway? You should have a fantastic dealership Website; it needs to look great and also readily feature the answers to questions potential customers typically have about your dealership and its products. This is also another reason to pay attention to your online reviews; you can bet these same people are looking at them!

∙ Based on the survey, the top three reasons people decide to buy a car are: 1. The vehicle itself (76%); 2 (tie). Price/Payment/Financing; and Manufacturer Reputation (both 62%).

∙ On average, a car shopper makes visits to two dealerships and takes two test drives. This makes it of utmost importance that your sales consultants possess the information – and the ability – to articulately explain what separates you and your cars from the other guy.

∙ Almost eight out of every 10 automobile shoppers buy a car within seven days of a test drive – and 34% of them buy a car that same day. What about the 66% who don’t? Staying in touch with them during the next week to 10 days is vital, because there’s a very good chance they’ll purchase a car during that time frame from someone. Why not you?

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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