AUTOMOTIVE ADVERTISING & MARKETING

Position

What is Your Dealership’s Position?

JKRAdvertising / Automotive Advertising Advice /

March 23, 2017

As an automobile dealer (or any other business, for that matter), your store has a distinct position in the minds of the consumers in your media market. It’s what you stand for … your niche … what makes you different in the crowd of dealerships in your area. In marketing terms this is frequently referred to as your “position”.

In your market, are you known for low prices? The best employees? Helping people with bad credit? The best cars, trucks and SUVs? The best selection? The perfect location? There are a lot of potential positions from which to choose … and the decision you make helps you define the way you do business.

About the Position You Choose

The position(s) you choose should then be part of your advertising mix starting today – if you’re not already doing this! After all, the only thing worse than neglecting to market your position is having no position at all.

As you formulate your position, always keep in mind that you’re not doing this for yourself; rather, you’re doing it for the people in your market. Why do we say that? Because anyone who comes in contact with your message will ask themselves (consciously or subconsciously) that all-important question: What’s in it for me? If they can answer in a positive manner, you have created something special that will pay big dividends for you.

JKR Automotive Advertising can help you find a clear position – maybe even multiple positions that work together – allowing you to stand out amidst the sea of dealers in your area, and giving you a message you’ll be proud to proclaim. Get the ball rolling today by calling Eric Tigner at (321) 397-0777. When you do, you’ll also receive a free advertising report filled with valuable marketing information that will give you just a small sample of our capabilities.

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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