AUTOMOTIVE ADVERTISING & MARKETING

Jim Sipala Kia Dealerships

Jim Sipala Kia Dealerships Retain JKR Advertising

JKRAdvertising / Auto Dealer Client News, Automotive Marketing, JKR New Clents /

October 30, 2014

Each of the two Jim Sipala Kia dealerships (Kia of West Chester and Coatesville, PA) operates under the same premise. “I explain to employees that it’s all about building relationships first,” Sipala explained. “You have to get to know a customer, and find out about their needs and wants. Only then have you actually earned the right to ask for their business.”

About the Jim Sipala Kia Dealerships

If you get the idea that Sipala believes in rolling up his sleeves and going the extra mile, you’d be right! He is a self-made man who started out in construction, but was looking for a different career path. “In 1980 I decided to try the automotive industry, and the man at the first dealership I visited told me I wasn’t cut out to be in the automotive business,” Sipala recalls. Undeterred, he tried again and landed a job. “Once that second dealership hired me, I knew that if I worked hard and kept my customers happy, I’d be successful. That mindset is still true today.”

The Jim Sipala Kia dealerships are proof positive his hard work has paid off. “I purchased the West Chester store in 2004, and we later moved into our current location at 326 Westtown Road,” Sipala said. “About six years ago we purchased the Kia of Coatesville store (located at 2535 East Lincoln Highway), and we recently did a full remodel.”

Sipala recently retained the services of JKR Automotive Advertising. JKR Managing Partner Jeff Johnson, who is also handling the account, is excited about the new opportunity. “We’ve done our homework, and we know based on our market data that these two Kia stores have the ability to gain a greater market share,” he said. “We’re going to help them do that.”

Sipala is very active in the local communities his stores serve. Among his many philanthropic interests is Bringing Hope Home, an organization dedicated to providing financial and emotional support to families affected by cancer. “I believe I have been blessed with these two stores as the vehicles through which I can help others,” he said.

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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