What is your average cost per sale?

Linda Loepker

Working on my 2021 advertising budget..... 

Including all advertising - website, SEO, SEM, branding, events, calendars, CSSR, etc., I come to an average of $483 per sale.

Anyone care to share theirs?  I have no idea what the average is!  Thanks :)

Dan Knoblock

I do not actually look at cost per vehicle sold. I look at advertising and marketing as an ongoing investment to my business. I carve out 15% of the total gross profit from our monthly forecast for the entire store and allocate accordingly by department.  Todays environment is about impressions, interest, and interaction. Conversion of  sales are important,  but is doesn’t measure the end result to determine if your advertising is working. Your people are. We all want to do more with less. But advertising is also about training both the consumer and our employees to drive that cost down. How much gross profit is your ad budget generating? How much is each employee generating in gross profit for you? Are your employees generating as much as possible? That may give you a better sense of how much money you are really spending. Some visitors turn to sales 30 days or longer. Maybe your cost per car went down if you had more inventory or better model mix, or more training, or even leadership. Establish a budget stick to it and let’s hold our people accountable. The more we grow, the more we make, the more we spend. Food for thought! Definitely a lot of ideas in this sector by all.

Jeremy  Abreu

I completely agree with you Dan, you summarized what we've been slowly changing our culture to over here. Focusing on allocating our Human Capital differently and extracting as much value on our conversion rate from our sales team p.o.v. 

Randi DeSantis

Before Co-Op dollars, we spend close to 600/vehicle. But we have some great co-op that pays 70% - so that helps off set a lot. 

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