AUTOMOTIVE ADVERTISING & MARKETING

hot

Advertise What’s Hot … Without Forgetting What’s Not

JKRAdvertising / Automotive Advertising, Automotive Advertising Advice /

November 11, 2016

hot Have a product that’s hot on your lot? These days, it very well could be an SUV. According to this article in Autoweek, Americans will buy 10 million trucks and SUVs this year, the first time that will have ever happened in a calendar year. Conversely, car sales are projected to fall below seven million for the first time since 2011 – and only the fourth time since 1962. This trend is expected to continue due to low gas prices, which are expected to continue into the foreseeable future.

With this paradigm shift in progress, how should this affect your advertising? In most cases, you should advertise what’s hot, in an effort to make those products even hotter and draw additional customers to your dealership.

However, if a dealer has a glut of a certain model sitting on the lot, it may behoove them to find a suitable hook to effectively persuade customers to purchase less-popular products.

FREE Advertising Review

What’s right for your situation? If you are unsure which models you should be highlighting in your ads based on your current inventory and the brand(s) you sell, give us a call today. You have the power to positively affect all your tomorrows by retaining JKR Automotive Advertising as your advertising agency. Call Eric Tigner today at (321) 397-0777 to get the ball rolling.

JKR Automotive Advertising: We Move Cars.

Press Categories

Recent Posts

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.

Read more