News

AUTOMOTIVE ADVERTISING & MARKETING

Distracted Driving

Distracted Driving Dangerous to Everyone, Especially Novices

Distracted driving leads to an increased risk of traffic accidents. This may not come as any surprise at all to anyone, but it’s still interesting to see some actual numbers. A newly released study published in The New England Journal of Medicine confirms distracted drivers of all ages and skill levels face a high accident […]

Automotive Advertising Results

Automotive Advertising Results from Super Bowl

Automakers expected big automotive advertising results from their Super Bowl commercials. Now that the dust has settled and the game has been in the books for several weeks, it’s time to rewind and see which manufacturers got the most bang for their buck in what is the most expensive automotive advertising they’ll do at any […]

Taylor Kia

Taylor Kia of Boardman Re-Signs with JKR Automotive Advertising

JKR Advertising is pleased to announce it is once again the agency of record for Taylor Kia of Boardman (OH). JKR will handle all automotive advertising for the dealership, located at 7870 Market Street in Boardman, near the Pennsylvania border. The account will be serviced by JKR Partner and Kia advertising specialist Richard Brauns. “It […]

Autonomous Automobile

Autonomous Automobile Idea Still Causes Concern

The idea of traveling in a autonomous automobile (self-driving) is great. Think about how it would change your morning and evening work commute. Imagine how refreshed you’d be after a road trip if you could relax en route to your destination. This technology exists, and experts believe it won’t long before it’s introduced to the public. […]

«‹ 121 122 123 124 ›»

Press Categories

Recent Posts

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.

Read more