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TV Advertising Revenue Grows

TV Advertising Revenue Grows Despite Audience Plateau

Here is why TV advertising revenue grows year after year: advertisers understand the undeniable value of TV commercials in their advertising campaigns. No matter what product or service is being sold, research done by trusted sources such as Kantar Media and Nielsen show TV advertising is the most influential form of advertising (not counting the […]

Client Advertising

JKR’s Client Advertising: Done on a Case-by-Case Basis

JKR Automotive’s client advertising is not a cookie-cutter, one-size-fits-all endeavor. We listen to each client’s needs and wants, and quickly become acclimated with the overall media market landscape in the client’s location. Taking these factors into consideration, we go to work to produce advertisements that increase foot traffic and sell cars. To ensure their success, […]

Nielsen History Goes Back Further than You Think

Nielsen History Goes Back Further than You Think

The Nielsen history is an interesting one. For many years, the Nielsen ratings have been regarded as the preeminent ratings system major media groups use as their benchmark. What you might not know is just how the company started and how many years it’s actually been around. In 1923, Chicago-based engineer Arthur Nielsen took a […]

General Automotive Advertising Tips

General Automotive Advertising Tips for Car Dealers

Today we offer some general automotive advertising tips. The following suggestions will help you in all your advertising efforts, but they’re especially helpful in terms of your radio and television advertising campaigns. List of General Automotive Advertising Tips (1) Don’t make the mistake of trying to reach too many people at once. It’s better to […]

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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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