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"Just a
Little Something to Think About"
by Anthony Hall
Dealer Support Manager
Dealership's spend thousands and
thousands of dollars monthly on advertising to generate walk in
traffic - hoping to achieve projections for the month. We take a shotgun
approach at selling, thinking if we put enough customers in front of
our sales people, we will sell the amount of cars we need. "It's a
numbers game" as all the advertisers say. It worked for them, but is
it really the most effective way to spend your dollars?
We all know 50% works & 50% doesn't!
The advertising generates the "traffic"
only to put "customers" in front of sales people, who through lack
of knowledge & skills may blow out the perceived "tough" customer or
the "shopper" to get to the "lay-down". Ask yourself: Is this
really what you want? How often is this the case?
How many real opportunities were lost
because of a salesperson's missed perception, lack of knowledge, &
more importantly, lack of skills?
Here is something to think about. How
much did you spend on advertising in the last three months? Divide
the dollars in advertising by the amount of cars sold. This gives
you the dollars per car in advertising cost.
Let's say for the purpose of this
exercise the dollars per car in advertising is $250.00 per car based
on $50,000 in advertising. Now, let's take $10,000 of the budgeted
advertising dollars and divert those dollars to training the sales
people and sales managers.
What does this do for you?
Training your Sales People, Sales
Managers, & F&I Managers allow for better control of customers,
better word tracts, in-depth customer interviews, selection of
vehicle, presentations, negotiations, more "now" sales, less
"shoppers", and more prospecting (ie: Sales People creating
business) which more than compensates for lost traffic. The Personal
Ownership demonstrated by the sales people & managers in selling
automobiles makes up for any money diverted to training.
Now let's say that training increased
your front end gross average by $400.00. Multiply that $400.00 by
200 cars. What does that do for you?
You've done the math! Advertising
dollars work, but not indefinitely! Training dollars can work for a
lifetime! What is a more effective way to allocate your
budgeted dollars?
Anthony Hall
Dealer Support
Manager
Contact us at
800.726.0510
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