AUTOMOTIVE ADVERTISING & MARKETING

Cultural Change

Is Your Dealership Ready for Cultural Change?

JKRAdvertising / Automotive Advertising Advice /

December 21, 2015

While cultural change is not happening everywhere in our country, it is taking place in many states. Those who are aware of it – and prepare for it – will be ahead of the game, according to a recent story on Forbes.com. The author says there is significant opportunity for those who are astute and flexible enough to see it and react to it. For example, the Ad Age Hispanic Pack 2015 showed that last year, Hispanic media spending rose by 17.6% to a total of $3.8 billion

This article in Automotive News further illustrates the point, as it demonstrates the clout carried by Hispanic car shoppers when it comes to automotive cultural change. It says as follows: “Spanish-speaking or Hispanic culture-identifying buyers are critical to automotive brands’ success. Last year, Hispanic buyers delivered 96 percent of Ford and Chevrolet’s combined year-over-year retail sales growth; 33 percent of Nissan’s; 35 percent of Toyota’s; and 100 percent of Honda’s, according to IHS Automotive’s Polk market data unit. No doubt about it, that’s significant!

FREE Cultural Change Check-Up

Do you know if your dealership is sufficiently catering to a potentially underserved (or perhaps even a completely untapped) customer base … or if the possibility for cultural change actually exists in your market? If not, it’s time to call JKR Advertising & Marketing. We have the experienced media buyers and industry software to let you know all about your market and its potential.

When you call Eric Tigner at (321) 397-0777, be sure to ask for your FREE advertising report. We’ll let you know if you’re on the right track at no cost to you – and there’s no better feeling than knowing you have a crystal clear picture of how your advertising dollars are best spent.

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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