Dealers today are looking for ways to have the “Up bus” stop at their dealership more often. The biggest complaint I hear from dealers and management is lack of traffic. Why is that? It’s because the competition and other manufacturers are doing everything they can to steal your customers.
Once upon a time, your dealership was selling 150-plus units per month and now it’s about 80 or so. That wouldn’t be so bad if you hadn’t become accustomed to the lifestyle and overhead of 150 units. So, where did the business go? Obviously, it’s somewhere else. While you were sleeping in your nice Ralph Lauren pajamas with your nice warm fuzzy blanket, your competition stole your business.
Now, its time to go into the blame game, isn’t it? Like most dealers, you call your management and ask, “Jones, what the heck is going on around here? What happened to our numbers? Our sales are down, our gross is down and my NET is down. What is going on?” And, doesn’t Jones say something like this, “Well boss, I called around town, and the other dealers said that business is down and the market is way off. The snow has been brutal, and with the elections and that, I think that’s just the way it is right now.”
I’d say, “Jones, are you crazy? I don’t want to hear excuses; I want results.” If Jones, as my sales manager, can’t get salespeople off their self-righteous rear ends, he would no longer be working for me.
How do you fix the problem? First of all, review where your current business is coming from. Source your opportunities, your phone calls and your sales. Once you find out where the majority of your current business is coming from, increase your activities right there. That is called on-target business.
Next, attack your unsold customers within minutes of leaving your dealership. Have management call customers within five minutes of leaving your dealership because you and I know your lost sale is going right down the road to your competition. Tell them to come back so you can do whatever is required to make that deal. Low gross is better than no customer.
Go on the offensive attack in your city and start marketing and canvassing right in your own backyard. TV, radio and newspaper are somewhat needed to keep your name in front of your customers, but I wouldn’t rely on them solely. You might be advertising to the wrong customers. Think about this, if you are in the Buy Here Pay Here segment or Special Finance business, you need to go specifically after these valuable, profitable customers.
It reminds me of fishing. The days of trolling all over the lake are somewhat gone. With GPS and sonar, today you can tell EXACTLY where the fish are. Why would you throw your line where there aren’t any fish? Go where the fish are! Isn’t that what you need to do with your customers?
The days of blitzing zip codes with spray and pray coupons are dead. Sorry, coupon king. If you aren’t sending the coupons to the right customers, you are wasting money. Where do your customers frequent? That’s where you go and look for new customers. There is nothing wrong with developing a flyer, brochure, newsletter, mailer or other related marketing materials and having someone from your dealership get out in the community and network with other businesses. You would be crazy to not do this.
Some places that you might find potential customers are:
Dealerships that are knocking down the numbers are knocking on the right doors. You’ve got to go where the “fish” are. Start thinking about how you are going to go on the offensive attack and take action. Here is your fast start program:
Target every available business in your town - start within a mile of your dealership and from there, mile two and so on.
Develop a brochure and order brochure holders.
Give customers five reasons why they should re-establish their credit at your dealership or buy from your dealership.
Determine who is going to go out in the community and get this done. Salespeople - Management - BDC or a public relations person.
Make phone contact - then public contact.
Maintain contact as the contact person will change.
Refresh brochures often.
Determine if you can develop a bird dog fee program.
Add all businesses to your database and treat them as a customer.
Follow up accordingly with phone calls, mail outs and personal visits.
Have road side posters made up that are inexpensive that can be place in high traffic areas that say: “Need a vehicle? Need to re-establish your credit? Call us today to re-establish your credit and get the car you deserve. 1-800-555-1212”. Do make sure you check applicable laws on placing posters.
That should get you started off on an offensive attack in your market. Dealers beware if you leave this important duty to salespeople. Most won’t do it and that’s a shame. Salespeople love the instant gratification on making a sale right now, not planning for sales a month or two from now. Don’t let your dealership be at the mercy of those that won’t. Find, or hire, a person who will go out and look for the best places to fish. At the end of the day, the “Up bus” will be bringing in those elusive buyers.
Vol 4, Issue 3
