AUTOMOTIVE ADVERTISING & MARKETING

Reach Them Before They Begin The Buying Process

Reach Them Before They Begin The Buying Process

JKRAdvertising / Automotive Advertising, Automotive Advertising Advice /

March 19, 2019

Research shows nearly nine out of every 10 car shoppers begin their buying process by conducting online research. Though most dealers are certainly aware of this, what are they doing – if anything – to make sure their dealership’s Website is top-of-mind with these potential customers?

Some decide to put all their efforts into making sure their Websites are as user-friendly as possible so customers will remain on the site and get the information they’re seeking. While this is certainly a good start, it is only a portion of what they should be doing.

It’s the most successful dealers who understand that the groundwork for a sale must be made prior to the point the Internet search process ever begins. By this time, you already need to be “in their heads”. Car shoppers need to know who you are before they decide to get into the market for a vehicle or there’s a very good chance they’ll never click through to your dealership’s Website at all.

The renowned Wizard of Ads Roy Williams put it this way: “The purpose of customer bonding is to become the business that people think of immediately and feel the best about when they – or any of their friends – need what you sell. You have to begin reaching them before they need you, and then wait until they do.”

That’s why, despite the inroads made by online advertising in recent years, it is still very difficult to build the identity of a dealership without advertising on radio or television. TV and radio ads work like megaphones to blast your message to the specific audience you’re looking to reach – and one of the residual benefits is driving people to your Website.

Assistance Is Available Now!

Can you say your dealership has attained the pinnacle of brand awareness through advertising creativity? If not, the folks at JKR Automotive Advertising can get you there. You’re just a phone call away from a level of success you’ve never experienced. Give Jenny Gray a call today at (225) 603-5915 and get the ball rolling.

JKR Automotive Advertising: The car dealer ad agency.

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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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