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Fletcher Auto Group

Third Fletcher Auto Group Dealership Signs with JKR Advertising

After experiencing soaring sales during the first month of their affiliation with JKR Automotive Advertising in their two Arkansas Kia stores, a third Fletcher Auto Group location has signed on with the agency. JKR is pleased to welcome Fletcher Honda of Columbia, MO to our family of dealerships. Fletcher Auto Group Info The Fletcher Auto […]

Brand Building Should Be Done Locally, Too

Brand building is one of our strengths here at JKR Automotive Advertising. Car dealers often think of brand building on a national scale, but locally there are things that can be done to establish a brand with your customers and community. National Brand Building On a national level, every brand sends out a specific message […]

Making Automotive News

Kia and BMW are Making Automotive News

Kia and BMW are among car manufacturers making automotive news these days. First up, we’ll examine Kia’s thoughts on possibly selling diesel powered automobiles here in the United States. After that, we’ll take a closer look at BMW’s billion-dollar plant in Mexico that is scheduled to begin production in 2019. Kia Making Automotive News According […]

Most Stolen SUVs

Most Stolen SUVs List Announced by the NICB

Each year, the National Insurance Crime Bureau (NICB) releases a list of the Most Stolen SUVs. This year’s list is based on 2011-2013 model year SUVs and crossover vehicles, and it shows a total of 27,211 stolen vehicles. If you own a Ford, you might want to keep a special watch on your SUV or […]

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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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