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Posts with price tag.
Dealeritis or Vendoritis? Has The Game Changed At All?

There seems to be a perpetual struggle in the dealer world between the client needing services, needing to change/improve, needing to stay in front of the competition and the vendors needing new places to hock their wares, prove their value, bang the 'we're the leader' drum and pay back their investors. They're both right while not typically paying attention to each other.

In the course of recommending vendors, after assessing the needs of the client, it is sometimes difficult to pinpoint what services will be beneficial. This is more the case today with some providers offering truly integrated, real-time solutions. There are times when, over the course of an engagement, fitting vendors are brought in to do their jobs, but in hindsight it's realized that one larger provider could have done the work. And likely at a lower price while providing a more streamlined experience.

It is always appropriate to push for the larger picture and achieve more but automotive retail has been hit hard over the years with less-than-promised services at outrageous prices and lackluster support. This has been painfully evident with DMS and CRM systems. Many dealers are numb to the pitch today. But have they turned a deaf ear and a blind eye when now is the right time to hear them out again?

Many consultants have the benefit of working with leading-edge and/or forward thinking dealerships and it is a pleasure. In providing best practice recommendations (i.e. the suggestions are honest and the vendor doesn't pay anyone a finder's or recurring fee) it is always necessary to keep goals in mind while ensuring the possibility of exceeding them. Too often the client feels it's the vendors job to 'perform' and the vendor feels it's the client's job to do so as well.

Getting over this 'dealeritis' and 'vendoritis' type of game is essential. and many think it's not happening fast enough. One event started changing things last year and we need more change.

What suggestions do you have to get vendors and dealers together in not-simply-for-large-profits-for-the-promoter forums around the country? Can it be sponsored so the cost is free-to-low for everyone and vendors pitch or should it be a pay-your-way-and-bring-a-sack-lunch event? This is the year of the automotive community: pitch in so you'll win!

Best Practices: Professional Insight, Powerful Results

January 15, 2010 by Gary May 0
Come On! What’s Social About A Price? Nothing!

After tip-toeing around this subject
for most of the year, it's time to take a more direct approach.  With more
car dealers using "social' media these days, seeing the overwhelming
amount of non-conversations are staggering!  A quick visit to the majority
dealer accounts on Twitter and Facebook reveal the following:

  • use of what are supposed to be social sites and
    services for essentially 'unpaid' advertising
    • The home of the $199 lease
    • Largest volume dealer in the
      area
    • Amazing inventory
    • More models arriving daily

  • use of auto-follow and auto-retweet programs to 'simplify'
    building followers
    • 30-day old accounts with
      2,000+ followers
    • Retweets of Automotive News
      articles
      • Consumers can't access as
        it's subscription only, and why share?
  • limited contextual links and content
    • video links are exclusively to
      store's site or YouTube inventory/walk-arounds
    • Using same links over and over
      with only slight modifications


Here's the hint that will hopefully get you to use social media for what it's
intended for: it's called social for a reason.  There is absolutely
nothing remotely social about car prices, lease specials, inventory, and 'buy
here!'.

Social is about conversation, influence, sharing, participation and ultimately
growing your virtual community.  And take note: this happens after
time.  It's organic and you have to learn.  It's not about control,
rants (although those can be fun in moderation), telling, limitation or
virtually throwing the keys on the roof.  Nobody cares about 100 tweets
telling how much you'll promise to save them, less the fine print.

Share funny stuff, eye-opening stuff, cool videos, first-to-market stuff,
did-you-know stuff, share fun events, invite people over to do things for free
and ultimately build a relationship around having conversations.  You'll
be amazed at how many customer service situations you can remedy, how many
times you can correct someone's misunderstanding about a capability or spec on
a vehicle and ultimately plant some seeds so that, when it's time, you already
have a customer that doesn't give a rat's behind that you are giving away gross
on "1 car at this price'.

So take some time and learn, understand and start participating instead of just
posting.  Just participating in social media doesn't give you any passes
or kudos.  Be real, be original, be compelling and be relevant.  If
you know you're market, friends, followers and customers, chances are you'll be
more successful.

Dealership staff: Don't talk to people.  Talk with people.  Listen to
people.  Create a valid, unpaid following that is interested in what you
share.  Be fun.  Be intentionally unintentional.

Go ahead, dare to be unique and different.  You might just end up being really social…

Best Practices: Professional Insight, Powerful Results

 

September 3, 2009 by Gary May 1
If My Ads Won’t Bring Them, Santa Will (and other misguided beliefs)

If the auto industry is living on one thing right now, it's hope. Not that hope isn't good, quite the opposite. But if your plan to drive traffic, sales and retention is based on the hope that people will see your ad, or that people will stop right off the freeway because your sign is there, please stop and think again.

Recently I was at a client, talking with a "non-Internet" salesperson. This person was complaining about the prospect of taking web leads since they were 'already responsible for about 600 orphans' in their system. Talk about kicking a gift horse in the mouth, but game on!

What you believe and what you perpetuate will, like it or not, manifest itself for you. Why is a person who contacts you via an email any less of a customer? Between 15 and 20% of Internet leads buy from the first store they contact. About 70% buy from a subsequent store. What are we doing or better yet not doing with our customers?

In a meeting last week, an OEM National Manager related a story about a neighbor of theirs. This person had submitted leads to all their area stores and was told by everyone that responded (not all did) that the request was for a vehicle that was not available in the entire region due to allocation not being built that way. Well, a dealer about 300 miles away got this person's next lead, found the car inbound to a dealer about 1,700 miles away, traded for it, shipped it in, the person flew in one way and drove their new car home (over 7 hours).

You could have the 'best' ads in the world (even online!), the 'best' inventory and even the 'best' facility, but you can't count on those to deliver customers (especially completely satisfied ones) to you…and neither will Santa (my sincere apologies to the jolly one).

Best Practices: Professional Insight, Powerful Results

December 1, 2008 by Gary May 0