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AUTOMOTIVE ADVERTISING & MARKETING

Taylor Automotive Group

Taylor Auto Group Opens Two Stores in One Month

On Friday August 3rd, 2012, Taylor Auto Group launched its new store, Taylor Kia of Lima, Ohio, and on September 4th Taylor is opening a new Hyundai dealership in Findlay, Ohio. About a year and a half in the making, owner Steve Taylor said the decision to open the Lima Kia store made a lot […]

Subprime Auto Loans

Auto Advertisers Know Subprime Auto Lending is Increasing

In a conversation with Kevin Baumann, CEO, JKR Advertising & Marketing, regarding Reuters recent article on the 14% rise in subprime lending, he described a general history of subprime financing over the past several decades. In the late eighties it was serving a growing need, things were changing; divorce levels were rising, manufacturing was beginning […]

Suntrup Kia Automotive Advertising

Suntrup KIA Increases Electronic Media Campaign

Suntrup Kia of West County partners with JKR Automotive Advertising to plan and buy an all electronic media campaign. Scheduled to start early September. Media will be cable and broadcast TV / Charter Communications/West County is the carrier, and Fox TV affiliate KTVI is broadcast. Suntrup Kia of West County is a recent addition to […]

Suntrup Hyundai Automotive Advertising

Suntrup Hyundai Pushes Automotive Advertising Throttle

Suntrup Hyundai West, retained JKR Automotive Advertising & Marketing to execute an electronic media campaign beginning September 1, 2012. Media is comprised entirely of cable; Charter Communications/St. Charles is the carrier. Targeted toward the immediate geographic market, Suntrup Hyundai West is a new sale point for the dealerships owned by brothers Butch and Craig Suntrup.

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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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