Tag Archives

Posts with bailout tag.
Some Good Time With Some Dealers…MPG Style (Why Weren’t More There!?)

Tuesday's MPG event at Proud Bird at LAX was another great session. While we're typically greeting marketers, OEM executives and industry suppliers, this was a great departure and informative (if not inspiring!). Charlie Vogelheim moderated the panel and the room finished the day with great questions. In between, it was all perspective, passion, personality and even a little bit of 'personal'.

Enter Jon Gray (Orange Coast Jeep Chrysler Dodge), Peter Hoffman (Sierra Automotive Group) and Beau Boeckmann (Galpin Motors). OK, there were three domestic dealerships on the panel so you could say the 'bend' was deserved. That being said, dealership owners I've met have all spoken the same way regardless if they were a domestic or import store owner. Fact is these guys know the business and definitely from a perspective rarely caught in the 'media' headlines after networks and publishers are done devouring the OEM stories.

The three principals were asked about everything from the cost to sell a car, how long they've been in business, how many employees they have, involvement with charities…to their take on government involvement in the automotive industry, specifically GM and Chrysler (with the two dealers speaking about being 'in the clear' of store terminations…for now).

One of the most interesting answers the panel gave was in regards to the impact of the Internet on car sales. All were in agreement that our favorite technology has added cost to dealership sales operations, not decreased, while acknowledging that the transparency has provided some significant advantages to their business.

As expected, the most pointed comments were about Washington's takeover of GM and Chrysler (let's say Fiasler since the Fiat purchase is complete as of this morning) and Ford's ability to stay out of the Cirque d' AutoBiz. They spoke of close friends and associates being on the short end of the decision stick.

Reflecting on how auto retail has changed, Boeckmann talked about how attrition in their local market area over the past years has taken the Ford dealership count from 9 to 3. Hoffman related the story of Oldsmobile's unwind a few years ago and how different it is this time around. Gray talked about how disconnected the factory reps are from the reality of dealership business. Both Hoffman and Boeckmann talked about Saturn's new life, albeit from polar opposites: Galpin still has their Saturn franchise while Sierra sold theirs. They both hope for the best with Penske's purchase of the brand.

Boeckmann provided a unique perspective in being a retailer that has a very close relationship with headquarters, even getting to have input on future cars. Mostly, the three businessmen related how hard it is to get both consumers and manufacturers to think of dealerships in a positive light.  All three are obviously passionate about what they do and provide to their communities, and very likely more so today. Even if most dealerships today are in defense mode, these three seem to have a forward-thinking perspective that is completely refreshing backed by the fact that none are throwing in the towel anytime soon.

These retailers don't have golden parachutes, multi-million (or
billion) dollar bailout packages, rarely get to sell cars for the same
price every time (as the factories do), and  are searching for the
logic behind the banks over-reactive pull back (and well as the search for loans so consumers can buy cars). Having seen a handful of dealerships speaking on panels over the past four years, it is clear that it needs to happen much, much more. Kudos to the Motor Press Guild for having the three fine retailers in for a dose of reality (and even a little bit of business and political conjecture).

June 10, 2009 by Gary May 0
How Best To Help During The ‘Auto Crisis’: IM@CS Breaks Silence

With the exception to recent Twits (@imacsweb on Twitter) on the state of the auto industry in the form of short blurbs and links, I've steered clear of commenting deeper. This blog's focus (and definitely going forward) is to educate, motivate, inform, guide and challenge…let alone be a positive light rather than a black hole. Maybe it's time to change that for one day since, chances are, it's not going to get prettier anytime soon. So without further ado, here we go:

1. The OEMs are broken (read: all), and retail is more so

With all the focus on manufacturers, loans/bailouts, government intervention, production cuts, layoffs, and the potential disintegration of the economy, no significant focus has been put on the prominent issue (in my mind): where cars are sold. We're still a reactive industry and that's no way to get ahead folks.

2. Brands for most part aren't connecting with consumers, salespeople do even less

Advertising can't happen the way it has: push, force feed, capture, bombard. Marketing has changed: one-to-one, relevant, contextual, timely, engaging, valuable. Get rid of the "when can you come down?!" mentality. You don't want that as a consumer so stop doing it. Why are you doing the same thing and expecting a different result?
Dealers: Oh, here's a new one. It doesn't matter what logo you sell on the piece of rusting metal: start selling your brand and if you don't know what your brand is, create one.

3. Budgets: Want to 'cut and wait'?…ok, in English that roughly translates to 'suicide'

If you want out, an exit strategy is recommended. If you're planning on staying in business, DO business.
OEMs: Why in the world would you cut Interactive for TV today? Don't worry, that's a rhetorical question. Shame on you. Want to stay with a current vendor instead of the newer, agile, lower cost one? Won't take meetings or talk to new suppliers: big mistake.
Dealers: You can have a viable to completely comprehensive marketing program for less than $10,000 per month (larger; less than $15,000, small, less than $7,000). Don't stop spending because it's the flavor of the week. Spend smarter, educate and support your staff (replace those you need to), understand what you're doing, get accountability and do more.

4. While 'news' media is garbage (but sells), the industry does little to battle conventional sentiment

Anyone that watches network/local news could have a better experience banging their head against a brick wall. People (smart and not-so-much) are still watching it. So what are you doing to educate your prospects, clients and others that you have a great brand (NOT the franchise!), have great products and services, have great ways to provide them with your products and services, will exceed their expectations and that you're there for them?

5. Consumers control consumption and engagement…and were still printing and running car ads?

Quit trying to fight a battle we'll lose every time. People consume content they want, when they want, how they want and where they want. Ads don't work: TV, radio or other methods are not effective. Shred newspaper, drop cable, hang direct mail out to dry and cut radio (dealers only: take your conventional ad agency out for their last expensive lunch). Communicate with people on their terms and be goshdarnwhoopdydoopty good at it.

6. Technology is the way, coupled with education and topped with strategy

Yes, new stuff can be vewy, vewy scawey (sorry, that's my best Elmer Fudd). The industry tries something new, early adopters scowl, doubting Thomas-es shake their heads and executives shrug shoulders, everyone quits. The providers get frustrated because nobody gave it a chance and consumers don't get what they want. Other major industries seem to be able to roll just a little easier. No excuses work here, just get over it and do what needs to get done.

We can run and hide, point fingers and continue to run business the way we have. Or we can pick up ourselves by the bootstraps, collaborate (boy would the earth move if that one happened), check egos at the door, innovate and get damn proud about the largest industry in the US that provides 20 out of every 100 tax dollars nationally.

OEMs: Expect more from your marketing dollars: effectiveness, return, creativity and impact. Talk to and truly consider every company that walks in your door. Try it. It might be better than what you think you have now. If you're not sure, ask a bunch of consumers and (yes) listen.
Dealers: Bank tanked? Call your local credit union! Salespeople can't cut it? Don't let your desk manager go, let him/her sell again (chances are they have the chops). Marketing: online, email, mobile (yes, mobile), CRM, one-to-one, social media and more.

This may not have the answers you are looking for. Hopefully, however, it has made you think again about at least one aspect of your current condition and started your shift from 'effect' mentality to the 'cause' side.

If we don't do it, there won't be a 'we'

Best Practices: Professional Insight, Power Results

March 25, 2009 by Gary May 0
A December To Remember? For A Lot Of Reasons

No matter how tightly or loosely your association with the automotive industry, this is a month of reckoning for so many reasons. But most are still in 'wait and see mode'. That just flat out can't be comfortable and it's not right, so why is it done?  If you'd had the proverbial crystal ball, what would you have done months ago (if not years)?

It is interesting to hear about some level of negative consumer sentiment or backlash about the Toyota 0% advertising. When was the last time the public's voice rallied against dealers communicating with them too much or trying to sell them cars they didn't want?

Not to rip off Lexus and their annual end-of-the-year ad blitz, but will this be a December to remember? Some stores are talking about a small lift in their traffic, some about people buying again and some are just happy to get clients responding via email. How do you keep the water flowing?

These are constants in what IM@CS teaches daily:

1. Put everything in the customers' terms
2. Ask questions
3. Validate the customer (while talking less)
4. Answer their questions and ask a new one (yes, keep the conversation going)
5. Demonstrate a real reason to buy
6. Promote value, advantages and benefits

Then ask yourself what your marketing says and remember that if you keep doing the same things, don't expect different results. In a meeting with a dealer service provider Tuesday, their entire (refreshing) approach was to understand their clients' needs better. Almost everything we talked about related to engagement. So…what are you doing every day to think about how you communicate and relate to your clients?

Don't pay more attention than your precious time allows to think about the economy, bailouts, cut backs, fewer units sales, etc. Nothing affects you more than the leads you're not responding to, the terse or lacking responses and messages you leave, the appointments you don't confirm and the time you don't spend learning how to do things better.

Find every reason to make this a December to remember for your own reasons, get out there and be great!

Best practices: Professional Insight, Powerful Results

December 4, 2008 by Gary May 1
Sharing The Pain, Silver Bullets And You

What is it that drives someone to perform? Along with the given family, friends, clients, bosses, partners and other tangibles and intangibles, it's simply that person's desire. Two things are clearly evident in the auto industry today: it's inextricably tied to the economy (if not one of the biggest drivers) and that companies reap what they sow, sometimes for an undeservedly long time. You can't change the economy but you can absolutely control what you do.

It's not rocket science to understand what separates a performer for an 'also ran'. While that may not be fair, it's reality. The winner always figures out a way to the desired result. They rise above circumstances and work on the cause side of the equation rather than the effect side. They also know that pointing a outward finger points three back at themselves.

Another wake-up call: even though the domestic auto manufacturers may not be building the most relevant cars in the world, the products sold by GM, Ford and Chrysler do not deserve the stigma attached to the cars from the 1980s until about 2000 or so today. If sentiment is the major indicator that it truly is, Detroit is still living the nightmare. In all fairness, however, I've seen more Traverse commercials in the past three months than I ever saw of 'Road To Redemption' ads.

What is it that continues to perpetuate that type of thought process today when products and services are truly better than ever? No one is impervious. Toyota is down around 50% over the past two months and layoffs there are eminent after the first of the year.

Sharing the pain is and will be one of the unfair realities (GM is holding incentive money from dealers for two weeks, which might bury more than a few stores) as is shortages of 'hot sellers' while your lot is filled with cars that don't move. And guess what…silver bullets just don't exist and likely never did.

So what can you do to change the perception of auto retail and service?  Quit letting the 'brands' dictate your actions and reactions. Build your own brand and reputation because people don't buy a Wrangler, Camry, Z, Malibu or Arnage from Jeep, Toyota, Nissan, Chevrolet or Bentley. They buy from you. Start staring at the front door less and start staring at your screen more (and then email and call more, too). Read what people are saying about you online and realize that's what everyone reads!

Start using the reports from your CRM, utilizing your analytics, update your website (including updating your staff photos that show people that are no longer there and not showing people that are), market your pre-owned inventory (you market it, not the third party sites), add video to your site, emails and follow ups, take more pictures of your happy customers at delivery, call a customer you haven't touched in 12 months…

Don't hold Honda or Subaru responsible for slow traffic and hold back
on expecting Mazda to deliver 24 more customers this month.  Think like, plan like, act like and then become a performer. You're the only thing between not having it happen and making it happen. Be more effective by doing above what is needed and you'll have everyone else thinking that your holster is loaded with silver bullets. Go on…be great!

Best practices: Professional Insight, Powerful Results

November 21, 2008 by Gary May 0