AUTOMOTIVE ADVERTISING & MARKETING

Annual Sales

Annual Sales Are Up Nationwide. How About Yours?

JKRAdvertising / Automotive Advertising Advice, Uncategorized /

December 9, 2016

The annual sales record of new vehicles may be broken in 2016. The folks at Autodata reported a 3.7% increase in sales last month compared to November 2015, setting the stage for what is going to be a very interesting finish to the calendar year.

That’s the good news. The not-so-good news is that even if there is a new record set, the increase will be smaller than that of recent years. And if this trend continues, we may not see a new record in 2017.

Here’s what Karl Brauer, Executive Market Analyst for Autotrader and Kelley Blue Book had to say: “A strong December finish will mean a new annual sales peak, one that could prove very tough to top in 2017. It will take a dramatic increase in consumer confidence to maintain, let alone eclipse, the 2016 number … but with a new administration coming online January 20th, anything is possible.”

Annual Sales: Good or Bad?

How has your 2016 been in terms of annual sales? How about your profit margins; are they where you want them to be? If not, you should contact us! JKR Automotive Advertising knows you shouldn’t settle for less. We will help you get your profit margins up without negatively affecting the number of sales.

There are a number of factors that ultimately determine dealer profits – and you may not even be thinking about some of them. We’ll show you what they are and get you on the right path to success. Take the time to make one simple phone call that will change the direction of your dealership almost overnight. Get the wheels in motion today by calling (321) 397-0777. Together, your dealership and JKR can make 2017 the best year you’ve ever had, and you will wonder how you ever got along without us.

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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