AUTOMOTIVE ADVERTISING & MARKETING

Advertise On Radio

The Big Boys Advertise on Radio, Too!

JKRAdvertising / Auto Industry in the News /

October 28, 2015

The “big boys” advertise on radio just as the local dealerships do. As our last blog indicated, radio ads are one of JKR’s preferred ways of advertising; and if you read it, you can understand why. Today’s blog offers even further proof that radio is not only alive and well, it is the catalyst behind some tremendous sales numbers at dealerships across this great country of ours.

The automotive advertising category is radio advertising’s overall largest, and new numbers from JD Power show that we are on track for our best October in more than a decade. Detractors may say it’s because October is a five-week month this year (and that certainly does make a difference), but September sales weren’t too shabby, either, with more than 1.2 million new vehicles sold.

Advertise on Radio, Enjoy Benefits

The data clearly shows that many Tier One automotive advertisers are spending big dollars on radio. For example, Nissan’s Dealer Association has increased their radio spot volume by more than 250 percent over the first nine months of this year. Other major manufacturers spending more money over the first three-quarters of 2015 include Honda (up 43%), Toyota (up 34%) and Chrysler-Dodge Jeep (19%). Even the luxury brands are stepping up their radio game this year, as Lexus, Mercedes-Benz, Acura and others have significantly increased their radio ad spending.

You, too, can see higher sales numbers at your dealership, on a local level. Just ask our clients who advertise on radio; they’ll tell you! Once you’ve refined your ad rates, target audience, reach/frequency and creative, you’ll be amazed how quickly your marketing campaigns improve – and you will understand why radio advertising is a great option. To find out more about how we do these things for our clients, give Eric Tigner a call today at (321) 397-0777. JKR offers a free automotive marketing review … let us show you how we’ll improve your marketing campaigns.

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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