Google’s recent Freshness Update is designed to give more weight to “fresh” website content on certain queries. Google has always rewarded fresh content, but last month’s update has given freshness even more emphasis in its ranking algorithm.

Google has been pretty clear about which searches will rely heavily on fresh content. For example:

• Recent events or hot topics – Example search: “NBA lockout” or “Occupy Oakland”
• Regularly recurring events – Example search: “NFL scores” or “Dancing with the Stars”
• Frequent updates – Example search: “Subaru Impreza reviews” or “best slr cameras”

Did that last one get your attention? This has huge implications for the auto industry. In their own blog posts explaining the way their Freshness Update has changed their search results, they’re using an example from the auto industry. Every year, new cars models are released, and brands are constantly receiving reviews online.

So you’re thinking that having a car dealer website gives you a leg up – your inventory will change monthly, so your site will always have fresh content. Which is correct… but your competition up the street has the same “freshness” benefit.  You’ve got to concentrate on your entire website, not just your inventory pages.

Most dealers will set up their dealer website and never change any of the pages other than their inventory. Most of the pages have only a few sentences referencing the fact that they offer financing and a few warranty options.

Forget Google for just a minute – pull up your dealer website and look at it like you’re a potential customer. Click through your website and see if it’s useful and relevant. Can you find information on financing rates or options? Can you read about the warranty packages and what’s covered? Is there any information about the dealership other than the location?

If potential customers don’t find value and relevance, the search engines won’t either. We talk to dealers all the time who don’t understand why they’re not showing up for "used cars City" – but they don’t have the actual phrase anywhere on their website (check back to our post Used vs. Pre-owned for more on this).

It depends where you’re located too. It’s a lot easier to rank high for "used cars Clarksville" than it is to rank high for "used cars San Diego." Bigger cities and metro areas will have more auto dealers, so there’s more competition. You’ve got to have useful, relevant content on your website in order to rank higher than the other dealers, and you’ve got to keep that content updated.

SEO isn’t a new concept, it’s been around for years – and you can bet that your competitors are doing it. The days are gone when you could just throw up a website and list your inventory and win. The competition is fierce, and if you’re not showing up on the first page or two of Google, you’re virtually invisible to your potential customers.

True Search Engine Optimization isn’t “built-in” or “automatic.” Sure, there are some technical elements that can be automated by your website provider, but actual competitive SEO requires ongoing work. SEO is not a one-time task, and it never ends.

For more information about our auto dealer SEO services, please feel free to call us at 888-311-7386. We’ll gladly answer any questions you might have about your site or SEO in general. If you’d like to learn more about SEO, click here to read all of our blog posts on the subject. Also, make sure you subscribe to our blog, we post regular updates about SEO and its importance in the auto industry.

Google’s recent Freshness Update is designed to give more weight to “fresh” website content on certain queries. Google has always rewarded fresh content, but last month’s update has given freshness even more emphasis in its ranking algorithm.

Google has been pretty clear about which searches will rely heavily on fresh content. For example:

• Recent events or hot topics – Example search: “NBA lockout” or “Occupy Oakland”
• Regularly recurring events – Example search: “NFL scores” or “Dancing with the Stars”
• Frequent updates – Example search: “Subaru Impreza reviews” or “best slr cameras”

Did that last one get your attention? This has huge implications for the auto industry. In their own blog posts explaining the way their Freshness Update has changed their search results, they’re using an example from the auto industry. Every year, new cars models are released, and brands are constantly receiving reviews online.

So you’re thinking that having a car dealer website gives you a leg up – your inventory will change monthly, so your site will always have fresh content. Which is correct… but your competition up the street has the same “freshness” benefit.  You’ve got to concentrate on your entire website, not just your inventory pages.

Most dealers will set up their dealer website and never change any of the pages other than their inventory. Most of the pages have only a few sentences referencing the fact that they offer financing and a few warranty options.

Forget Google for just a minute – pull up your dealer website and look at it like you’re a potential customer. Click through your website and see if it’s useful and relevant. Can you find information on financing rates or options? Can you read about the warranty packages and what’s covered? Is there any information about the dealership other than the location?

If potential customers don’t find value and relevance, the search engines won’t either. We talk to dealers all the time who don’t understand why they’re not showing up for "used cars City" – but they don’t have the actual phrase anywhere on their website (check back to our post Used vs. Pre-owned for more on this).

It depends where you’re located too. It’s a lot easier to rank high for "used cars Clarksville" than it is to rank high for "used cars San Diego." Bigger cities and metro areas will have more auto dealers, so there’s more competition. You’ve got to have useful, relevant content on your website in order to rank higher than the other dealers, and you’ve got to keep that content updated.

SEO isn’t a new concept, it’s been around for years – and you can bet that your competitors are doing it. The days are gone when you could just throw up a website and list your inventory and win. The competition is fierce, and if you’re not showing up on the first page or two of Google, you’re virtually invisible to your potential customers.

True Search Engine Optimization isn’t “built-in” or “automatic.” Sure, there are some technical elements that can be automated by your website provider, but actual competitive SEO requires ongoing work. SEO is not a one-time task, and it never ends.

For more information about our auto dealer SEO services, please feel free to call us at 888-311-7386. We’ll gladly answer any questions you might have about your site or SEO in general. If you’d like to learn more about SEO, click here to read all of our blog posts on the subject. Also, make sure you subscribe to our blog, we post regular updates about SEO and its importance in the auto industry.

Our exclusive eBay Motors Whitepaper shares inside information about eBay Motors and shows you exactly what to do to be successful on the automotive industry’s most trafficked website. Competition on eBay is fierce, so you need to be sure that your dealership stands out from your competitors. We share detailed tips on how to create the perfect auction listing, including how to create the optimal title, which pictures you should include, and how you should write your description.

We also cover the various auction types and share successful pricing strategies. Did you realize that eBay phone calls should be handled in a completely different manner than normal inbound calls? We’ll teach you exactly what to say to eBay callers, and we’ll walk you through the steps you should take to close every eBay deal.

Here’s what’s included in our eBay Motors Whitepaper:

• eBay Motors company information and statistics
• Vehicle Photos
• Vehicle Videos
• Virtual Business Cards
• Vehicle Descriptions
• Pricing Strategies
• eBay Search Rankings Explained
• How to Help eBay Buyers
• eBay Phone Tips
• Closing and Delivery

If you’re not posting on eBay Motors, this Whitepaper is the perfect assistant to get you started. If you’re already a seasoned eBay Motors veteran, this Whitepaper will help your auctions be more successful.

Our exclusive eBay Motors Whitepaper shares inside information about eBay Motors and shows you exactly what to do to be successful on the automotive industry’s most trafficked website. Competition on eBay is fierce, so you need to be sure that your dealership stands out from your competitors. We share detailed tips on how to create the perfect auction listing, including how to create the optimal title, which pictures you should include, and how you should write your description.

We also cover the various auction types and share successful pricing strategies. Did you realize that eBay phone calls should be handled in a completely different manner than normal inbound calls? We’ll teach you exactly what to say to eBay callers, and we’ll walk you through the steps you should take to close every eBay deal.

Here’s what’s included in our eBay Motors Whitepaper:

• eBay Motors company information and statistics
• Vehicle Photos
• Vehicle Videos
• Virtual Business Cards
• Vehicle Descriptions
• Pricing Strategies
• eBay Search Rankings Explained
• How to Help eBay Buyers
• eBay Phone Tips
• Closing and Delivery

If you’re not posting on eBay Motors, this Whitepaper is the perfect assistant to get you started. If you’re already a seasoned eBay Motors veteran, this Whitepaper will help your auctions be more successful.

Reputation Management has been getting a lot of buzz lately, especially with Google’s recent updates that use ratings to influence placement in the search results. Good reviews can boost your placement, and bad reviews can lower you – but beyond the technical points, it’s common knowledge that online reviews have an effect on your business.

A recent study by Cone shows just how much reviews can help or hinder your dealership. A mind-blowing 4 out of 5 consumers have changed their mind about a purchase based solely on negative information they found online! That’s 80% of your potential customers who will decide NOT to buy from you because they found negative reviews about your dealership online.

It goes both ways though – the study also showed that 87% of consumers said that a positive review actually confirmed their decision to purchase.

Another interesting stat – 59% reported that they are more likely to research a purchase online because they can easily access applications on their mobile phones.

The most important statistic to come out of the study: a whopping 89% of Americans will verify recommendations on high cost purchases, such as cars. That means 9 out of 10 potential customers will be researching your dealership online before doing business with you… so what will they find???

You should know about every single review your dealership has online… period.  If people are online talking about your business, there’s no excuse NOT to be a part of the conversation. A good rule of thumb is that you need 10 positive reviews for every 1 negative review. Do you know where all your reviews are and how they look?

Remember – it’s not hard to make basic reputation management part of your daily routine. We put up a post last week called Social Media Monitoring in 10 Minutes a Day – read it now, if you haven’t seen it yet. You just can’t afford to sit on the sidelines and not think about your online reputation.

If you’d like to have us take care of your reputation management, it’s included in our auto dealer SEO services. We’ll monitor your social media reputation, as well as online reviews, and help you to promote positive reviews and address negative reviews. We’ll also assist you in changing your processes to help gather more positive reviews from your happy customers. Call a dealer consultant today at 888.311.7386 for more information.

Reputation Management has been getting a lot of buzz lately, especially with Google’s recent updates that use ratings to influence placement in the search results. Good reviews can boost your placement, and bad reviews can lower you – but beyond the technical points, it’s common knowledge that online reviews have an effect on your business.

A recent study by Cone shows just how much reviews can help or hinder your dealership. A mind-blowing 4 out of 5 consumers have changed their mind about a purchase based solely on negative information they found online! That’s 80% of your potential customers who will decide NOT to buy from you because they found negative reviews about your dealership online.

It goes both ways though – the study also showed that 87% of consumers said that a positive review actually confirmed their decision to purchase.

Another interesting stat – 59% reported that they are more likely to research a purchase online because they can easily access applications on their mobile phones.

The most important statistic to come out of the study: a whopping 89% of Americans will verify recommendations on high cost purchases, such as cars. That means 9 out of 10 potential customers will be researching your dealership online before doing business with you… so what will they find???

You should know about every single review your dealership has online… period.  If people are online talking about your business, there’s no excuse NOT to be a part of the conversation. A good rule of thumb is that you need 10 positive reviews for every 1 negative review. Do you know where all your reviews are and how they look?

Remember – it’s not hard to make basic reputation management part of your daily routine. We put up a post last week called Social Media Monitoring in 10 Minutes a Day – read it now, if you haven’t seen it yet. You just can’t afford to sit on the sidelines and not think about your online reputation.

If you’d like to have us take care of your reputation management, it’s included in our auto dealer SEO services. We’ll monitor your social media reputation, as well as online reviews, and help you to promote positive reviews and address negative reviews. We’ll also assist you in changing your processes to help gather more positive reviews from your happy customers. Call a dealer consultant today at 888.311.7386 for more information.

Craigslist has been an incredible source of leads and revenue for car dealers, but doing business with the site hasn’t come without peril.  There are a multitude of posting issues: over-posting, posting too quickly, listings get flagged, accounts get banned, certain computers get blocked, entire dealerships get banned from posting… and the list goes on and on. The bottom line is that Craigslist was not created for commercialization, but instead as a community service – so they have absolutely no desire to cater to businesses using their website.

So how do you conduct regular business on Craigslist?  I’ve unpacked the top ten Frequently Asked Questions about Craigslist from our dealers to help you make Craigslist a successful part of your marketing efforts (and ideally, drastically increase your sales).

1. How come I can post from home, but not from my dealership?

Craigslist has either blocked your IP address or you MAC address.  An IP Address is a numerical label assigned to any network device (a computer or network router, for example) and is used for communication on the Internet.  Generally speaking, every computer inside your dealership network goes out to the Internet with the same external IP Address.  If your IP address has been blocked, then any computer using that IP address will be unable to post to Craigslist.

A MAC address is a unique identifier assigned to your computer for communication on a network.  If your MAC Address has been blocked, then that specific computer is banned from Craigslist.  The monitoring technology used by Craigslist can detect abuse and block either (or both) options.

2. I could post earlier today, but now I can’t post. Why?

Craigslist issues temporary bans on accounts without notice.  They don’t send you an email or call you, you’ll just suddenly wonder why you can’t post listings.  In many cases, this is brought on by over-posting or posting too frequently.

3. Why aren’t my listings showing up on Craigslist?

In most cases, Craigslist will take 15 to 20 minutes to add a new listing to the site.  If your listings don’t appear after 20 minutes, then something is going on.  They’ve probably placed a temporary ban on your account, but they continue to let you post on the site.  Our recommendation is to take a break from listing today and try again tomorrow.

4. I’ve been banned from Craigslist.  How can I continue listing on the site?

Assuming you have been banned in every way (IP Address, MAC Address, Craigslist account, and duplicate content), you will need to create a new Craigslist account with a new email address and then post from a different location (a different computer on a different network).

5. Can I post my cars directly to the site without a template?

Yes.  In fact, it is a good practice to vary your listings so you don’t get flagged for “duplicate listings”.  After logging in, simply click the “post to classifieds” link and follow the wizard.  It is a bit more work to copy and paste content and then upload photos, but it’s well worth the diversification of listing templates.

6. How can I post to multiple cities on Craigslist?

We get this question all the time from dealers, but even still, we do not recommend this strategy.  The best strategy is to post in your specific (or nearest) city and play within the policies of Craigslist.  If you want to try to beat the system and try multi-city posting, then you’ll need to use a unique email address for each account.  Make sure that each account is always tied to the specific email address associated with it.  You’ll also be better off posting to each city from different IP addresses.

IMPORTANT NOTE: Multi-city posting is the fastest way to get banned from Craigslist.  They DO record the location of your IP Address for each post, so eventually they will detect the over-posting.  It’s like playing a clam shell game – you might get lucky a few times, but in the end, you’ll lose.

7. Why are my listings getting flagged?

Several conditions can contribute to your listings getting flagged, but the two main contributors are most likely other community members flagging your listings (because they’re trying to keep companies off the “community” website) OR a competitor is probably flagging of your listings to reduce competiton.  Best practices to avoid flagged listings: do not post the same vehicle twice in less than 7 days, randomize your posting template, and don’t post 100% of your inventory every day.  Your best option is to post less than 15% of your inventory each day, with no more than 10 cars posted daily.

8. How does Craigslist know what city I’m in?

Whenever you post, Craiglist records your IP address.  Your IP address can provide the geolocation of your network.  Now that Craigslist knows your geolocation information, it can serve up the nearest city and know pretty accurately where you’re located.  Don’t believe me? Go to www.whatismyipaddress.com and see for yourself.

9. Who can I call at Craigslist to talk about my issues?

Nobody! Amazingly enough, there aren’t any service agents for you to speak with.  Earlier this year, I tried calling the phone number listed on their WHOIS information for craigslist.org.  After navigating the auto attendant for an hour, I finally got a billing person on the phone, who then sent me to “some guy” who told me exactly “we have less than 30 people working here and don’t have time for this phone call. –click.”  True story.

10.Is there a better time of day to post?

No one has reliable data to show that certain times of day are better to post.  Prior to the April 22, 2011 changes made by Craigslist, much of the monitoring of the site was manual or done by the community.  The theory was that posting earlier in the morning was advantageous, because most of the site police volunteers were on the west coast.  As of the update on April 22, we now believe that many of the monitoring and security measures have been automated, so posting at certain times to avoid manual detection is no longer relevant. Our recommendation is to diversify your listing times (morning, afternoon, and night).

I can sum up all of these issues with one question: “Why is it so difficult to work with Craigslist?”  The answer: Craigslist is an online classified community.  The biggest misunderstanding that dealers have about posting is that Craigslist simply doesn’t care that you are there… period.  The site deems itself a “community service” for individuals, not companies, so they don’t care about making it easy for you to post.

If you’re already using Craigslist, these guidelines will help you improve your listing strategy, and if you’re not using Craigslist, this list will help you drastically boost your sales. If you have any tips you’d like to share, please share them in the comments below.

Craigslist has been an incredible source of leads and revenue for car dealers, but doing business with the site hasn’t come without peril.  There are a multitude of posting issues: over-posting, posting too quickly, listings get flagged, accounts get banned, certain computers get blocked, entire dealerships get banned from posting… and the list goes on and on. The bottom line is that Craigslist was not created for commercialization, but instead as a community service – so they have absolutely no desire to cater to businesses using their website.

So how do you conduct regular business on Craigslist?  I’ve unpacked the top ten Frequently Asked Questions about Craigslist from our dealers to help you make Craigslist a successful part of your marketing efforts (and ideally, drastically increase your sales).

1. How come I can post from home, but not from my dealership?

Craigslist has either blocked your IP address or you MAC address.  An IP Address is a numerical label assigned to any network device (a computer or network router, for example) and is used for communication on the Internet.  Generally speaking, every computer inside your dealership network goes out to the Internet with the same external IP Address.  If your IP address has been blocked, then any computer using that IP address will be unable to post to Craigslist.

A MAC address is a unique identifier assigned to your computer for communication on a network.  If your MAC Address has been blocked, then that specific computer is banned from Craigslist.  The monitoring technology used by Craigslist can detect abuse and block either (or both) options.

2. I could post earlier today, but now I can’t post. Why?

Craigslist issues temporary bans on accounts without notice.  They don’t send you an email or call you, you’ll just suddenly wonder why you can’t post listings.  In many cases, this is brought on by over-posting or posting too frequently.

3. Why aren’t my listings showing up on Craigslist?

In most cases, Craigslist will take 15 to 20 minutes to add a new listing to the site.  If your listings don’t appear after 20 minutes, then something is going on.  They’ve probably placed a temporary ban on your account, but they continue to let you post on the site.  Our recommendation is to take a break from listing today and try again tomorrow.

4. I’ve been banned from Craigslist.  How can I continue listing on the site?

Assuming you have been banned in every way (IP Address, MAC Address, Craigslist account, and duplicate content), you will need to create a new Craigslist account with a new email address and then post from a different location (a different computer on a different network).

5. Can I post my cars directly to the site without a template?

Yes.  In fact, it is a good practice to vary your listings so you don’t get flagged for “duplicate listings”.  After logging in, simply click the “post to classifieds” link and follow the wizard.  It is a bit more work to copy and paste content and then upload photos, but it’s well worth the diversification of listing templates.

6. How can I post to multiple cities on Craigslist?

We get this question all the time from dealers, but even still, we do not recommend this strategy.  The best strategy is to post in your specific (or nearest) city and play within the policies of Craigslist.  If you want to try to beat the system and try multi-city posting, then you’ll need to use a unique email address for each account.  Make sure that each account is always tied to the specific email address associated with it.  You’ll also be better off posting to each city from different IP addresses.

IMPORTANT NOTE: Multi-city posting is the fastest way to get banned from Craigslist.  They DO record the location of your IP Address for each post, so eventually they will detect the over-posting.  It’s like playing a clam shell game – you might get lucky a few times, but in the end, you’ll lose.

7. Why are my listings getting flagged?

Several conditions can contribute to your listings getting flagged, but the two main contributors are most likely other community members flagging your listings (because they’re trying to keep companies off the “community” website) OR a competitor is probably flagging of your listings to reduce competiton.  Best practices to avoid flagged listings: do not post the same vehicle twice in less than 7 days, randomize your posting template, and don’t post 100% of your inventory every day.  Your best option is to post less than 15% of your inventory each day, with no more than 10 cars posted daily.

8. How does Craigslist know what city I’m in?

Whenever you post, Craiglist records your IP address.  Your IP address can provide the geolocation of your network.  Now that Craigslist knows your geolocation information, it can serve up the nearest city and know pretty accurately where you’re located.  Don’t believe me? Go to www.whatismyipaddress.com and see for yourself.

9. Who can I call at Craigslist to talk about my issues?

Nobody! Amazingly enough, there aren’t any service agents for you to speak with.  Earlier this year, I tried calling the phone number listed on their WHOIS information for craigslist.org.  After navigating the auto attendant for an hour, I finally got a billing person on the phone, who then sent me to “some guy” who told me exactly “we have less than 30 people working here and don’t have time for this phone call. –click.”  True story.

10.Is there a better time of day to post?

No one has reliable data to show that certain times of day are better to post.  Prior to the April 22, 2011 changes made by Craigslist, much of the monitoring of the site was manual or done by the community.  The theory was that posting earlier in the morning was advantageous, because most of the site police volunteers were on the west coast.  As of the update on April 22, we now believe that many of the monitoring and security measures have been automated, so posting at certain times to avoid manual detection is no longer relevant. Our recommendation is to diversify your listing times (morning, afternoon, and night).

I can sum up all of these issues with one question: “Why is it so difficult to work with Craigslist?”  The answer: Craigslist is an online classified community.  The biggest misunderstanding that dealers have about posting is that Craigslist simply doesn’t care that you are there… period.  The site deems itself a “community service” for individuals, not companies, so they don’t care about making it easy for you to post.

If you’re already using Craigslist, these guidelines will help you improve your listing strategy, and if you’re not using Craigslist, this list will help you drastically boost your sales. If you have any tips you’d like to share, please share them in the comments below.

There was a big splash in the automotive news world last week when we saw the first auto dealership Groupon offer. Twitter and blogs were all abuzz with industry experts, vendors, and dealers debating the deal, and offering opinions about whether it would work or not.  Now the deal has expired, and the minimum number of Groupon vouchers weren’t purchased, so the deal is null and void.

Of course, everyone is now jumping on the “here’s why it didn’t work” bandwagon… There’s a great post by Arnold Tijerina over at dealer-magazine.com called “Why the first car dealership Groupon failed” – give it a read, he’s got a few great points…

To summarize, he says the deal didn’t have value for the customer because customers EXPECT to negotiate with the dealer and bring the price down by at least $500 – so why would a Groupon be necessary?  Also, the dealer probably didn’t handle the Groupon correctly – as potential buyers were leaving comments debating the worth of the deal, the GM left a few comments of his own to try to prove to people how valuable the deal was:

VALUE GUARANTEE OFFER!!!!
In the unlikely event that we are unable to come to an agreement on a vehicle purchase/lease, for whatever reason, I will honor your voucher toward $199.00 in our service, parts or body shop departments. Purchase accessories, have routine maintenance done or have those annoying dings, dents and scratches repaired.

Seriously? If you don’t find a car, you can get $199 in credit in our service department… for the $199 coupon?  That’s not a deal, that’s just pre-paying for services… So instead of proving worth, he’s devaluing his own deal. And this comment makes even less sense:

William P visited our store yesterday. He selected and test drove the vehicle he was interested in. He worked out all of the pricing details with our sales staff until he was satisfied with the pricing. He THEN AND ONLY THEN explained he had purchased the Groupon voucher but needed a vehicle immediately. We reduced his amount due by $500.00 and honored the voucher in order to accommodate a customer. He took delivery today. We’re still confident that the sales requirement will be met.

He posted this before the minimum number of vouchers were purchased, and before the time limit had expired… so he’s working against his own deal by showing people that the coupon isn’t even necessary!

Those are great points… but here’s the real reason I think the Groupon deal failed:

People buy Groupon deals to save money and get a deal.

The way this deal was structured, you’re buying a $200 Groupon to save $500 on a vehicle purchase… So even if you bought a used car worth $6,000 (about the lowest priced vehicle they have in stock), you only end up saving $300 – only about 3%!!! Most Groupon deals tend to be at least 50% off the purchase price of whatever the voucher is for, and that’s all you have to pay.  In this case, your $200 Groupon is also a commitment to spend at least $6000 more… so it’s nowhere near the easy impulse buy like most Groupon vouchers.

Plus, you’re committing to buying a car from that specific dealership. So now, the dealership is targeting all Groupon users in the Detroit area who are also going to buy a car in the next year (and realistically, the only people who’d buy the Groupon are people who are already looking to buy a car now). That’s probably a pretty small slice of the Groupon user pie in Detroit… and since the Groupon buyer then HAS to buy from this specific dealership, the slice gets even smaller…

That’s why the Groupon deal didn’t work – it wasn’t an easy “wow, what a deal!” impulse buy – when all the successful Groupon deals give you huge discounts, saving such a tiny percentage on a high-dollar purchase just wasn’t valuable.

There was a big splash in the automotive news world last week when we saw the first auto dealership Groupon offer. Twitter and blogs were all abuzz with industry experts, vendors, and dealers debating the deal, and offering opinions about whether it would work or not.  Now the deal has expired, and the minimum number of Groupon vouchers weren’t purchased, so the deal is null and void.

Of course, everyone is now jumping on the “here’s why it didn’t work” bandwagon… There’s a great post by Arnold Tijerina over at dealer-magazine.com called “Why the first car dealership Groupon failed” – give it a read, he’s got a few great points…

To summarize, he says the deal didn’t have value for the customer because customers EXPECT to negotiate with the dealer and bring the price down by at least $500 – so why would a Groupon be necessary?  Also, the dealer probably didn’t handle the Groupon correctly – as potential buyers were leaving comments debating the worth of the deal, the GM left a few comments of his own to try to prove to people how valuable the deal was:

VALUE GUARANTEE OFFER!!!!
In the unlikely event that we are unable to come to an agreement on a vehicle purchase/lease, for whatever reason, I will honor your voucher toward $199.00 in our service, parts or body shop departments. Purchase accessories, have routine maintenance done or have those annoying dings, dents and scratches repaired.

Seriously? If you don’t find a car, you can get $199 in credit in our service department… for the $199 coupon?  That’s not a deal, that’s just pre-paying for services… So instead of proving worth, he’s devaluing his own deal. And this comment makes even less sense:

William P visited our store yesterday. He selected and test drove the vehicle he was interested in. He worked out all of the pricing details with our sales staff until he was satisfied with the pricing. He THEN AND ONLY THEN explained he had purchased the Groupon voucher but needed a vehicle immediately. We reduced his amount due by $500.00 and honored the voucher in order to accommodate a customer. He took delivery today. We’re still confident that the sales requirement will be met.

He posted this before the minimum number of vouchers were purchased, and before the time limit had expired… so he’s working against his own deal by showing people that the coupon isn’t even necessary!

Those are great points… but here’s the real reason I think the Groupon deal failed:

People buy Groupon deals to save money and get a deal.

The way this deal was structured, you’re buying a $200 Groupon to save $500 on a vehicle purchase… So even if you bought a used car worth $6,000 (about the lowest priced vehicle they have in stock), you only end up saving $300 – only about 3%!!! Most Groupon deals tend to be at least 50% off the purchase price of whatever the voucher is for, and that’s all you have to pay.  In this case, your $200 Groupon is also a commitment to spend at least $6000 more… so it’s nowhere near the easy impulse buy like most Groupon vouchers.

Plus, you’re committing to buying a car from that specific dealership. So now, the dealership is targeting all Groupon users in the Detroit area who are also going to buy a car in the next year (and realistically, the only people who’d buy the Groupon are people who are already looking to buy a car now). That’s probably a pretty small slice of the Groupon user pie in Detroit… and since the Groupon buyer then HAS to buy from this specific dealership, the slice gets even smaller…

That’s why the Groupon deal didn’t work – it wasn’t an easy “wow, what a deal!” impulse buy – when all the successful Groupon deals give you huge discounts, saving such a tiny percentage on a high-dollar purchase just wasn’t valuable.