News

AUTOMOTIVE ADVERTISING & MARKETING

Radio Advertising

Will Increased Car Sales Increase Radio Advertising?

In what could be good news for radio if auto sales translate into auto advertising, Toyota experienced its first monthly sales increase since April, and joined Chrysler and Nissan in exceeding analysts’ estimates. Toyota car sales increased in November by 6.7% to 138,000, while Chrysler sales skyrocketed by 45% to 107,000 and Nissan increased 19% […]

Kia Automotive

Kia Optima Hybrid Named Top 10 Car of the Year

It could be the end of the tag line The Power to Surprise because at the rate Kia is racking up the awards, one might say, Not surprising at all. Kia Optima Hybrid Named Top 10 Car of the Year by the Hispanic Motor Press Association.

Congressman Mike Kelley Tells Off Congress

Kia Dealer Tells Off Congress

Congressman Mike Kelly and Fellow Kia Dealer gives his congressional colleagues a piece of his mind! Representative Mike Kelly (R, PA 3rd c.d.) and fellow Kia dealer lays out his colleagues in lavender he was justifiably incensed and when he declared that he was speaking as an American, not a republican or democrat, he obviously […]

Effective Radio Advertising

The Four C’s of Radio

Content, Creative, Consistency and Constituency An effective radio spot must grab the listener’s attention and be repeated enough times to imprint your message. Content is your core message; your hooks. Match your hooks to make, model, availability and demographics. Creative varies, content is constant [remember to match your hooks all around]. A clear message consistently […]

«‹ 140 141 142 143 ›»

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