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Some Big Reasons to Advertise

JKRAdvertising / Automotive Advertising Advice /

July 25, 2016

What are some of the main reasons to advertise if you’re a car dealer? Some are blatantly obvious, while others are a little less so. Today’s blog focuses on some of the reasons a car dealership should not ignore advertising (or even cut back on it in an attempt to “save money”).

∙ Your advertising touches people in every part of the buying process – sometimes, even when they’re not car shopping yet. Most people don’t decide they need a car today and buy one tomorrow. It’s a process that typically takes many weeks. So each time these folks hear your message, it’s fresh and new in their minds.

∙ Your advertising attracts new buyers. The people in your community change on a daily basis. People move in and out of the area. Others pass away or become too old to drive, but they’re replaced by young people getting their first cars. Maybe someone even got a big raise at work and can now suddenly afford a new or pre-owned vehicle. Changes like these – and others – create the need for constant advertising.

∙ Your advertising keeps your store top-of-mind with the people in your community. With the advancements in technology – and simply because people are different than they used to be – there isn’t always the customer loyalty once enjoyed by businesses like auto dealerships. Advertising helps recruit new customers; and it also helps keep old ones coming back to you.

∙ Your advertising helps you keep up with the Joneses (and surpass them if you do it right). If you’re not advertising, you’re going to lose out to the dealerships that do.

FREE Advertising Review

In a nutshell, this is the biggest of the reasons to advertise: advertising brings more foot traffic to your dealership – and therefore, more sales. How would you like to find out if your marketing dollars are being spent efficiently? Contact JKR Automotive Advertising, and we’ll send you a no-strings-attached, FREE Advertising Review. We’ll closely examine what you (and your competition) are doing, and then provide you with 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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