AUTOMOTIVE ADVERTISING & MARKETING

Automotive Advertising and Marketing

Top 10 Reasons Car Dealers Need Automotive Advertising and Marketing

JKRAdvertising / Automotive Advertising, Automotive Marketing /

March 10, 2014

Why do car dealers need automotive advertising and marketing agencies? That can be answered by one question: does your automotive dealership have a definite plan for prosperity, or does it seem like it’s always looking at short-term goals to get the most out of today?

It’s easy to just roll along planning everything month-by-month, but to be a true visionary for your automotive dealership and its employees it’s important to have a long-range plan.

Once that plan is in place, every employee should have the talent and desire to carry out their specific part of the plan. With that in mind, we present to you the Top 10 Reasons Car Dealers Need Automotive Advertising Agencies.

Reasons for Automotive Advertising and Marketing

10: Many car dealers work their tails off just to make it through today.

9. Automotive advertising and marketing agencies offer new, innovative ways to promote your dealership.

8. An expert agency’s creative materials address the main reasons people buy cars.

7. Automotive advertising agencies get the best ad rates for their clients.

6. Most car dealers don’t know the importance of reach and frequency in advertising.

5. Many dealers believe “long-range thinking” is 30 days from now.

4. A car dealership’s employee morale is boosted when foot traffic is plentiful.

3. Automotive advertising and marketing agencies have tools (Nielsen, Arbitron) to tell a dealer if he received all his purchased ads.

2. Car dealers can spend so much time on advertising they ignore important dealership matters.

1. Automotive advertising and marketing agencies help car dealerships reach their full potential.

FREE Automotive Advertising and Marketing Review

If you need increased traffic at your dealership, you need JKR Advertising. If you’re already a successful dealer, think about what it would be like with an even bigger piece of your market share. As an exclusive automotive advertising agency, JKR makes its clients easy to remember… and difficult to ignore. Call us today for a free, no-strings-attached automotive advertising and marketing review, and find out what JKR can do for your dealership!

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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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