AUTOMOTIVE ADVERTISING & MARKETING

What’s Next for Your Dealership?

What’s Next for Your Dealership?

JKRAdvertising / Uncategorized /

February 27, 2018

What’s next? That should always be the question you’re asking as you look for ways to make your employees, your facility and ultimately, your sales, better than ever. It’s really easy to sit back and enjoy your current situation – especially when your business is profitable. But if you aren’t looking for new and better ways to present your dealership to your community, your competitor might very well pass you by.

There should be nothing stopping you from constantly striving to make things better. We understand that it often requires leaving your comfort zone to do so, but fear of change or fear of taking a risk oftentimes are what holds dealers back from making a positive decision that could’ve taken their automobile dealerships to the next level.

Just imagine if Apple rolled out the original iPhone and never looked to improve upon it with future versions. What if the Coca-Cola Company never created new flavors or branched out into other beverage offerings besides soda? These corporate giants could easily have been content to rest on their past successes, but instead they sought out – and found – ways to remain in the forefront of their business segments.

You can continue wondering what would happen if you took a chance … or you could overcome your concerns and look forward to what’s next. It’s up to you.

What’s Next: The Answer

You can’t change your yesterdays … but you can change your tomorrows by doing something new today. The first positive step in answering “what’s next?” should be retaining JKR Advertising as your agency of record. You really should find out how we have become one of the top automotive advertising agencies in the country in a few short years. You need to learn about the strategies we use to save our clients big money in the way we buy media for them. It would also behoove you to know how we ensure each client gets what they ordered … every month.

Call Eric Tigner today at (321) 397-0777. In exchange for your time, he’ll provide you with a complimentary, no-strings-attached advertising review that will give you some eye-opening information about your market and your brand. It’s well worth the effort, so call today!

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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