What do you think makes your dealership more money on financing options for your customers - low monthly payments or less-costly payoffs? The answer likely varies based on buyer's specific needs (or at least it should), but research now shows one is likely better than the other when it comes to making more money.
Buyers often provide valuable insights that can help dealers sell better. Listening to and adjusting your strategy to their feedback could do amazing things for your dealership.
Last week on the blog we discussed selling from the service lane as a way to increase your dealership's revenue. Due to the interest that post received we wanted to elaborate and lay out some examples of how your sales team can engage service customers.
Amazon, Spotify, Lyft, Purple, Dollar Shave Club. You have heard of all these companies and chances are you use at least one of them on a regular basis.
All these products made a major splash when they debuted in the marketplace and many of them have grown into multi-million, or even billion-dollar companies. So, why are all these products so successful?
When you stop to think about it, are they really offering anything new?
A shopper comes into your dealership. They ask one of your sales people the price on a model, the salesperson gives it to them they turn around and walk out the door. Sound familiar?
The thing is, it’s really not the salesperson’s fault. With the world getting smaller and smaller and consumers having more options, car shoppers are visiting fewer dealerships and instead spending most of the buying process online. The convenience this offers them has caused shoppers to want to spend less time talking to sales people and immediately push for the end-game: what is the price?
In a previous blog post we discussed Convenience as a Pricing Strategy. In that post we talked about how instead of discounting your services you can actually charge premiums by making your dealership more convenient for customers.
One of the most common questions we get from dealers (especially in response to that post), is whether or not they should be using coupons to incentivize customers with cheap oil changes and other services they offer. In the previous post we were not saying that coupons or discounts are a bad thing. Coupons can be extremely effective when used the right way.
You are a successful dealership. You've sold tens of thousands of cars. But, how many have you bought? When I say ‘bought’ I mean how many cars have you bought going through the same processes that your customers go through? Being in the car business affords you the luxury of NOT having to go through what your customer goes through and until you get that experience, you’re more in the dark than you could ever imagine.
Why would anyone pay $6 for milk at a convenience store, when they could get the same gallon of milk at their local supermarket for less than $3? The answer? Convenience.
We’ve seen huge changes in the industry in the last 15 or so years that have forever changed how customers shop for cars, and in turn how dealers should be engaging and selling to them.
Now more than ever it is important to have a Marketing Strategy.
DON’T CLICK AWAY JUST YET.