AUTOMOTIVE ADVERTISING & MARKETING

Persuasion

Using Persuasion Tactics to Your Advantage

JKRAdvertising / Automotive Advertising Advice /

September 29, 2015

Why are an auto dealership’s persuasion tactics so important? I remember once reading a quote attributed to the folks at Advertising Age that has stuck with me over the years. It goes like this: In very few instances do people really know what they want, even when they say they do.

When you think about it, there is a lot of truth to that statement – especially in the automotive business. How many times do your salespeople encounter customers that come in and know exactly what they want – and tell you precisely what they’re thinking? We feel pretty confident saying that this probably doesn’t happen a whole lot. And even when they do know what they’re looking for they are hesitant to tell you, for fear of giving up some “negotiating power”.

This is where those persuasion tactics come into play. A car dealership must rely on more than just the automobile itself to make a sale; instead, they must sell an entire experience. Automotive advertising plays a big part in the process.

Examples of Persuasion Tactics

What are some effective persuasion tactics dealerships use?

∙ Logic: Using data to show why a customer should buy from your dealership.

∙ Trust: Showing that your dealership is honest and has integrity, because there others out there who lack these qualities.

∙ Emotion: When you create feelings of exhilaration and fun, this can often override everything else. Remember the saying, “Win the heart and the mind will follow?” It’s absolutely true. Emotion-causing advertising tools could include things such as romantic imagery, action, music, stereotypes, humor, presenting the unexpected, or even a celebrity endorsement.

FREE Advertising Review

Want to find out if your Automotive Advertisements are as effective as they could be? There is an easy way to do so, and it won’t cost you anything but a few moments of your time. Contact JKR Automotive Advertising, and we’ll provide you with a no-strings-attached, FREE Advertising Review. We’ll take a close look at what you (and your competition) are doing, and give you our expert feedback. Call Eric Tigner at (321) 397-0777 today to get things started.

JKR Automotive Advertising: We Move Cars.

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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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