Most dealers have heard of Dave Smith Motors in Kellogg Idaho. In the mid 1990's, this dealership was selling more Dodge trucks than anyone else in the nation despite its town's population of some 2400 people.
How did they do this? With turn and earn marketing tactics.
Turn And Earn Dealership Marketing In Action
Dave Smith Motors implemented a 3 pronged marketing strategy focused on price undercutting, no-haggle pricing, and turn and earn.
By using a no haggle pricing strategy and taking advantage of Dodge's turn and earn policy, this small town dealership put itself on the map selling nearly 4,000 extended cab trucks by 1996.
These 3 in conjunction with one another meant they were able to undercut the competition's pricing to attract tons of buyers without further losing money on deals. This simple and effective plan grew their market share far beyond their town's population, and helped them dominate for years.
How do you start a turn and earn strategy in your dealership?
The best way is by communicating directly with your OEM representative to find out what vehicles they need to sell more of in your market.
Vehicles with lower travel rate can often present a problem to manufacturers as they can be harder to wholesale to dealers. Conversely, best sellers are always in demand from dealers which can lead to a limited availability.
By taking on more of the lower demand vehicles and finding a way to sell them in your market, you can increase your turn rate which leads to a higher allocation of volume model lines and/or improving your negotiating position with your OEM to purchase more.
Selling more of these lower demand vehicles can not only increase your market share on its own, but also provide a direct path to more best sellers on your lot and showroom floor.
Have you implemented turn and earn for your dealership? If so, let us know what you did to make it work in the comments?
Turn and earn dealership marketing is a great way to get sales up and expand your market. Interested in what your market looks like and what you could be doing to grow it even further? Sign up for a in-depth, FREE market study by clicking the button below.