Dataium offers useful information you can't get anywhere else and gives it away free to dealers!

                 Dataium offers useful information you can't get anywhere else and gives it away free to dealers!

                One of the tough decisions in automotive marketing is whether or not to go premium with AutoTrader.com. However, knowing whether or not it pays off is not a matter of guesswork. By going from featured listings to premium, your inventory will be included on more Search Results Pages (SRPs). Under the reporting tab of Dealers.AutoTrader.com, this is found in the Executive Summary as "Times your vehicles were seen in a search."

                More SRPs leads to more shoppers selecting your inventory, measured as Vehicle Details Pages (VDPs). This can be found in the same report as "Detail pages viewed for your inventory."

The value of going to premium status can best be measured as the margin cost per VDP. Calculate the additional amount you are paying AutoTrader.com to go from featured to premium status, then divide this dollar amount by the change in the number of VDPs. Generally speaking, we are looking for a marginal cost per VDP of less than $1.

                The $1 per VDP benchmark assumes market pricing, good merchandising, and good lead handling. It also assumes a marginal cost per vehicle sold of $400 is tolerable. Adjustments must be made when these assumptions are not valid. For thousands of dealerships, store operations are so poor that even a marginal cost per VDP of less than $1 is still not cost effective. Generally speaking, these stores should get their house in order before expanding their advertising.

                It is important to evaluate the change to premium status using marginal cost per VDP, rather than average cost per VDP. Chances are your average cost for featured listings is lower than $1. The fact is AutoTrader.com and Cars.com make sense for most dealers. However, the marginal cost for going to premium status is almost always more expensive on a cost per VDP basis.

                In later posts, I'll explain why aggressive market pricing, outstanding merchandising, and the best possible lead handling can make it possible for dealers to gain substantial profits at a marginal cost of more than $1 per VDP. I'll write about other ways to measure the value of listing services. And yes, I'll also write about Cars.com.

                One of the tough decisions in automotive marketing is whether or not to go premium with AutoTrader.com. However, knowing whether or not it pays off is not a matter of guesswork. By going from featured listings to premium, your inventory will be included on more Search Results Pages (SRPs). Under the reporting tab of Dealers.AutoTrader.com, this is found in the Executive Summary as "Times your vehicles were seen in a search."

                More SRPs leads to more shoppers selecting your inventory, measured as Vehicle Details Pages (VDPs). This can be found in the same report as "Detail pages viewed for your inventory."

The value of going to premium status can best be measured as the margin cost per VDP. Calculate the additional amount you are paying AutoTrader.com to go from featured to premium status, then divide this dollar amount by the change in the number of VDPs. Generally speaking, we are looking for a marginal cost per VDP of less than $1.

                The $1 per VDP benchmark assumes market pricing, good merchandising, and good lead handling. It also assumes a marginal cost per vehicle sold of $400 is tolerable. Adjustments must be made when these assumptions are not valid. For thousands of dealerships, store operations are so poor that even a marginal cost per VDP of less than $1 is still not cost effective. Generally speaking, these stores should get their house in order before expanding their advertising.

                It is important to evaluate the change to premium status using marginal cost per VDP, rather than average cost per VDP. Chances are your average cost for featured listings is lower than $1. The fact is AutoTrader.com and Cars.com make sense for most dealers. However, the marginal cost for going to premium status is almost always more expensive on a cost per VDP basis.

                In later posts, I'll explain why aggressive market pricing, outstanding merchandising, and the best possible lead handling can make it possible for dealers to gain substantial profits at a marginal cost of more than $1 per VDP. I'll write about other ways to measure the value of listing services. And yes, I'll also write about Cars.com.

This is the first in my series of Friday Freebies, highlighting products available for dealers or salespeople at no cost. Others are welcome to add comments – positive or negative – regarding how they make money with the same opportunity or found it not worth their time and effort.

CarFolks is designed to be a dealer-friendly rating service. Individual sales people can sign up on CarFolks at no cost, whether their dealership has elected to buy into the system or not. In other words, every salesperson in the store can use the product for free, even if the store itself does not pay to participate.

Progressive salespeople are sending their customers to CarFolks and asking them for a positive rating, even comments. They then link to this information in their social media and email lead responses.

Increasingly, shoppers consider two or more vehicles of roughly the same value. They may be considering a new car and several used vehicles, but to them the value appears to be about the same. Often, the sale goes to the salesperson who can best demonstrate they are the right salesperson, and their store is the right organization to buy from. In these instances of value parity, ratings and testimonials from an independent third-party can prove to be powerful documentation.

With millions of vehicles listed on any number of automotive websites, instances of value parity are far more common than they once were. With the widespread adoption of tools like vAuto and FirstLook encouraging market pricing, it will become increasingly common in the future.

My recommendation is to print out your CarFolks profile and keep it in a folder with other documentation about you and your store. Consumer comments found on an independent site like CarFolks carry more weight than the same comments on your website or in your store. Have your profile in the favorites of your computer or know how to get to it quickly. Every deal has a deal jacket demonstrating the full value of the vehicle. That's not always enough. Every salesperson should have a folder full of credible evidence showing they are the right person and the right store to buy from. If you are worth enough to tip the scales on a buyer's decision, back it up with documentation.

If you know of a freebie to dealers or salespeople you'd like me to write about, just send me a note through DrivingSales.com or directly at DennisGalbraith@msn.com. Your link to this week's freebie is http://carfolks.com/join.

This is the first in my series of Friday Freebies, highlighting products available for dealers or salespeople at no cost. Others are welcome to add comments – positive or negative – regarding how they make money with the same opportunity or found it not worth their time and effort.

CarFolks is designed to be a dealer-friendly rating service. Individual sales people can sign up on CarFolks at no cost, whether their dealership has elected to buy into the system or not. In other words, every salesperson in the store can use the product for free, even if the store itself does not pay to participate.

Progressive salespeople are sending their customers to CarFolks and asking them for a positive rating, even comments. They then link to this information in their social media and email lead responses.

Increasingly, shoppers consider two or more vehicles of roughly the same value. They may be considering a new car and several used vehicles, but to them the value appears to be about the same. Often, the sale goes to the salesperson who can best demonstrate they are the right salesperson, and their store is the right organization to buy from. In these instances of value parity, ratings and testimonials from an independent third-party can prove to be powerful documentation.

With millions of vehicles listed on any number of automotive websites, instances of value parity are far more common than they once were. With the widespread adoption of tools like vAuto and FirstLook encouraging market pricing, it will become increasingly common in the future.

My recommendation is to print out your CarFolks profile and keep it in a folder with other documentation about you and your store. Consumer comments found on an independent site like CarFolks carry more weight than the same comments on your website or in your store. Have your profile in the favorites of your computer or know how to get to it quickly. Every deal has a deal jacket demonstrating the full value of the vehicle. That's not always enough. Every salesperson should have a folder full of credible evidence showing they are the right person and the right store to buy from. If you are worth enough to tip the scales on a buyer's decision, back it up with documentation.

If you know of a freebie to dealers or salespeople you'd like me to write about, just send me a note through DrivingSales.com or directly at DennisGalbraith@msn.com. Your link to this week's freebie is http://carfolks.com/join.

Regardless of how you price your new vehicles, the sales team must be able to demonstrate the value of them. This is one of the many ways the internet has changed floor sales.

If the customer wants a BMW 328i Sedan, you have lots of them with varying packages and options. Some of these features may be must-haves and some may be things the shopper definitely does not want. However, some of the vehicles in the shopper's consideration set will undoubtedly come with features that add to the price yet the shopper is not certain they need. The benefits need to be explained in order to help the shopper determine which vehicle is the best value for them.

This seems so obvious, yet I can't find a single BMW dealer whose website facilitates this decision making. Additionally, I'm sure I can walk into any store and find a salesperson that functions as little more than a query tool, "Do you want this or do you want that?" Of course this inevitably leads to the customer finding that the color they want comes with an option or package they already said they don't want, leading to the desire to keep looking for the perfect vehicle at other stores.

If your website and your salespeople cannot demonstrate the value of each package and option, you simply are not selling as many vehicles as you could be. Maybe the sport steering wheel with paddles is not worth $100 to the customer. However, if you can demonstrate at least some value in the fancier steering wheel, it may not be worth additional shopping to find the perfectly configured vehicle.

It's important to know how each feature can enhance quality of life and contribute to resale value. When resale value is considered, most shoppers are not paying full price for the options they receive full benefit from. If the customer is considering a lease, it is important to be able to discuss options, packages, and accessories in terms of what they add to the lease rate and how they benefit the shopper.

In the age of transparency, sales people cannot go around making this stuff up on the fly. When I began selling cars, the store was the information source. The shopper had very few alternatives from which to gather information. That is far from the case today. If you want to sell cars, you've got to be able to demonstrate the value of them, every little piece of them.

Regardless of how you price your new vehicles, the sales team must be able to demonstrate the value of them. This is one of the many ways the internet has changed floor sales.

If the customer wants a BMW 328i Sedan, you have lots of them with varying packages and options. Some of these features may be must-haves and some may be things the shopper definitely does not want. However, some of the vehicles in the shopper's consideration set will undoubtedly come with features that add to the price yet the shopper is not certain they need. The benefits need to be explained in order to help the shopper determine which vehicle is the best value for them.

This seems so obvious, yet I can't find a single BMW dealer whose website facilitates this decision making. Additionally, I'm sure I can walk into any store and find a salesperson that functions as little more than a query tool, "Do you want this or do you want that?" Of course this inevitably leads to the customer finding that the color they want comes with an option or package they already said they don't want, leading to the desire to keep looking for the perfect vehicle at other stores.

If your website and your salespeople cannot demonstrate the value of each package and option, you simply are not selling as many vehicles as you could be. Maybe the sport steering wheel with paddles is not worth $100 to the customer. However, if you can demonstrate at least some value in the fancier steering wheel, it may not be worth additional shopping to find the perfectly configured vehicle.

It's important to know how each feature can enhance quality of life and contribute to resale value. When resale value is considered, most shoppers are not paying full price for the options they receive full benefit from. If the customer is considering a lease, it is important to be able to discuss options, packages, and accessories in terms of what they add to the lease rate and how they benefit the shopper.

In the age of transparency, sales people cannot go around making this stuff up on the fly. When I began selling cars, the store was the information source. The shopper had very few alternatives from which to gather information. That is far from the case today. If you want to sell cars, you've got to be able to demonstrate the value of them, every little piece of them.