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Car Dealers Should Advertise

Why Car Dealers Should Advertise … No Matter What

Here is why car dealers should advertise. It makes no difference if your automotive dealership is large or small; big-city or rural; established or brand-new. Simply put, you can’t afford to ignore automotive advertising. Here at JKR Automotive Advertising & Marketing, when we talk to potential clients we hear some very interesting reasons why they […]

Why Radio Advertising

Why Radio Advertising is a Tremendous Choice for Auto Dealers

Why radio advertising for auto dealers? The better question should be, “Why not!” This blog will explore why radio advertising should be an integral part of any dealership’s ad strategy, and you’ll have an increased understanding of why it’s still as strong as ever. First, let’s take a look at some statistics compiled by Nielsen […]

Matt Blatt Kia

Matt Blatt Kia is No.1 Greater Philly Area Kia Dealer

Automotive advertising is paying off for Matt Blatt Kia of Egg Harbor Township, New Jersey. They just finished up a record-setting September that left them top dog among Kia dealerships in the greater Philadelphia area. Matt Blatt Kia is well ahead of the national curve. With Kia sales up 5.9% year over year from 2013 […]

Automotive Advertising Consistency

Automotive Advertising Consistency is a Major Priority

Automotive Advertising Consistency is among the keys to long-term success. We all know automotive advertising is a process, not something that happens overnight. The purpose of today’s blog is to underscore the importance of automotive advertising consistency. Think about it: You know all about your dealership, its cars, its staff and the way it works. […]

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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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