We know the faltering economy is one of the many factors that brought vehicle leasing to a standstill. Nowadays, you have to be artistic to put an educated shopper into a lease because the dramatically lagging financial market has made it disadvantageous for them.

 A zany car salesman takes an unsuspecting customer on a pretend test drive that still turns out to be the ride of his life.  Craziness follows.  Another Joe Webb (DealerKnows) "car guy" creation.

By no means am I going to detail the one thousand "best practices" for advertising a dealer's inventory.  That would take two full days of typing and I simply don't have it in me.  Actually, this is a question that I would like to pose to all of you DrivingSales readers out there.  You will see I discuss my beliefs, but I'd like to hear from you.

I was perusing my Saturday morning edition of the Chicago Tribune, checking out the car ads.  (Yes, I still get the newspaper, though I don't know why considering I read the news online before ever opening up the printed papyrus.)  What caught my attention was not how many local dealers are still advertising in a dying medium (ridiculous), but how many dealers were actively promoting how large their inventory was of certain models.

The common practice of detailing how many vehicles you have in stock (by model) has been widely used for quite some time.  Not too long ago, when dealers could do no wrong, they had to sell themselves as the one-stop shop for every variation of car possible.  (Presenting yourself as a high-volume dealer can still be valuable).  Back then, a bad salesperson could fall out of bed and land on a customer willing to buy from them.

However, with the current economic downturn and fewer buyers in the market, my question is this...  do YOU still feel it is a good idea to display in your advertising how many of one certain model you have in stock?

Don't get me wrong...for those sought-after vehicles (hybrids for instance), it is a benefit to let your customers know their is some semblance of a selection.  Nowadays, though, consumers already now we are struggling to move product - they hear about it and read about it daily.  Do you think it is wise to scream from the rooftops "We have 64 2008 Dodge Sprinters In Stock, On the Ground, Ready for Immediate Delivery!" - the actual quote from a local dealer.

Is that a selling point?!  In my opinion, and I may be wrong, promoting your glut of vehicles reminds the customer how desperate we are to move some cars.  "Geez, Mary Ellen...why do you think they have seventy Ford Focus' in stock?  Does no one want them?"  Or, do you believe detailing how many vehicles you have of a certain model may allow the shopper to negotiate with unrealistic numbers because our supply is so much greater than demand?

Let me know your thoughts on this.  I have my beliefs.  I think if you can let consumers know there is a selection to choose from, you are putting yourself in a better position to ask for gross, than if you are advertising yourself as a dealer drowning in 2008 Dodges.

There is the age-old saying that “you can’t believe everything you read”.  Well, that thought process has expanded.  With the glut of internet “consultants” in the game, I believe you must add “don’t listen to everything that is taught”.

There are two widely-held, overly-preached beliefs that can cause irreparable harm to your ecommerce objectives and bring about online irrelevance.    Dealers that adopt these incorrect ideas must have a death wish.  Instead, disregard these poorly-conceived trainings and stand strong – Charles Bronson-style.   Unfortunately, these are not “old-school” tactics that these “trainers” are teaching, but instead, they are new-school philosophies oversimplified.  I will detail these two bits of bad advice.  When an “expert” walks into your store spouting this nonsensical bologna, do yourself a favor and stick to your own beliefs…just like Charles Bronson.



First Commonly-Held Belief to Avoid – Dealers must go back to the basics regarding their internet initiatives.

“Back to the Basics” will kill any automotive dealership attempting to stay ahead.  There is no reason to scrap all efforts and begin again.  “Back to square one.”  I’ve heard dealer principals relent.  Where is ‘square one’ anyway?  Is it a city?  Is it a state of mind?  No…it’s the unemployment line.

Granted, you may need to bring aboard some refresher trainings to remind your staff of fundamentals, but far too often, dealers go back to the drawing board and “start fresh”.  In this difficult economic market, only the forward-thinking dealers are seeing vast improvement – and do you know the one thing they aren’t doing?  They aren’t starting over from scratch.  Even with potential flaws, they are moving forward, placing emphasis on their strengths and minimizing their weaknesses.  They are dedicating a greater portion of their advertising to digital efforts.  They are going to battle with the staff they have.  They are sticking with the solutions that have brought them “only this far”.

Any legitimate consultant will tell you that it is likely not the solutions or staff doing your dealership a disservice, but instead, how they are being utilized and managed.   Personnel and products seem to be the first on the chopping block when sales become stagnant.  Instead of going back to the beginning and bringing in all new CRMs, websites, staff, and strategy, it is much smarter and financially-viable to focus on using all of these resources to their greatest capacity.  Very few website providers or CRM solutions will tell you that their systems are being utilized to their fullest by dealers.  If they do tell you that, I would drop them because they probably offer far too few features to sustain economic growth for their dealer clients.

Don’t go back to the beginning.  If you are holding steady in this market, continue to dance with the people that brought you there.  It only takes a little dedication, perseverance, and time to weather the storm and come out looking sunny.

Second Commonly-Held Belief to Avoid – Internet buy-in should come from the top down.

This was very true four or five years ago, but times have changed drastically.  Not too long ago, some dealers were still wary to dedicate large portions of their ad budgets to advanced technologies and programs, but not any longer.  Now, a good majority of dealers have seen some success and growth from their digital marketing efforts and are looking to grow that area of their business.  Now, this philosophy has shifted. 

If you want to push ahead and achieve online profitability, the internet buy-in must come from the bottom.  This is not to say that a sales staff is the “bottom” of the dealership environment.  They are the front-line of your store, but all too often, they do not have the decision-making power to change the culture of a dealership.  However, if an entire sales force was dedicated to improving online, then they will easily be able to elicit buy-in from the top.  No owner would turn away a crew that said “Golly jee, we’d really like to have some software that allowed us to reach our customers electronically on a massive scale using multi-media and enriched content.”  I think most owners would have a grabber (i.e. heart attack) if their staff actively sought more internet engagement with their customer base.

Obviously, dealers still must understand the online metrics that are to be tracked and attained. However, the only actionable buy-in needed from above is hiring candidates with an inclination to achieve internet connectivity.   With the right, forward-thinking, “connected” sales force in place, the culture of the dealership will naturally change for the better.

To that end, avoid listening to those so-called “auto consultants” who only teach the basics.  You are actively reading an online resource as we speak.  You are well-versed on the basics.  You don’t need to go backwards, but advance.  You mustn’t put the weight of your dealership’s virtual world on your own shoulders, but look to the stars in your sales staff to lead the way.  

No more “back to the drawing boards”.  No more Saturday morning spiffs to reward mediocre internet results.  It is time to get away from the basics, push for progress, and be a Bronson.

 

I have a distinct feeling that some dealers believe achieving online success may be a flash in the pan. These dealers (owners) must have a chemical imbalance passed onto them from their fathers and family members before them to believe e-commerce is a trend. Many struggling owners learned from an older generation that didn't have to adapt as quickly to newfound technologies and, therefore, lived well by sticking to tried and true advertising mediums. There is a major problem facing many of today's owners that has a greater affect on their long-term goals than the economy does. It is their judgment. I can only assume this problem is genetic.
I hear from ISM after ISM across the country that buy-in from ownership continues to be difficult. Dealers just won't know what they don't want to learn. Many dealerships have one person handling incoming leads. They buy a few third party leads, place some inventory on an AutoTrader or Cars.com, and have a mediocre website. These dealers achieve their same old 12-14 cars sold off the internet each month - reaching a 10% closing ratio - and feel that they are in the game. Those of you reading this know that they aren't even in the ballpark. There is so much more that can be gained from dedicating a significant portion of ad dollars to online initiatives and e-commerce training and the proof is in the profits, process, and testimonials of the top dealers.
I write for Digital Dealer magazine and recently left a dealership to start my own digital marketing consulting firm, DealerKnows LLC. The documented numbers I (and my team/department) had achieved there put the dealership in the upper echelon of successful Internet dealers. When I write, it is usually a rant like this where I am trying to accomplish/win an argument or struggle I was having. Through my meandering writing, I'll find my answer. In this case, I know what the answer is. Genetics.
I was speaking to a close friend and internet professional whose dealer sent out a 60,000 piece mailer. Yes, you heard me correct. A 60,000 piece mailer. $30,000 or so in cost. During my friend's time there, he constantly warned them that their dedication to paper (consistently spending 70% or so on newspapers, direct mail, etc.) was going to have a negative impact on their bottom line and they didn't listen. On my few run-ins with this dealer during consulting, I too stressed their need to dedicate more money only. Time and again, they'd spend their money on paper products only to prove my friend and I right. They would have their tri-weekly full-page newspaper ads and their 10,000 piece "customer appreciation" mailers where past customers were told to come in and pick up their free set of steak knives or whatever. They expected their sales crew could convert the type of people that drive 10 minutes for a $3 set of knives - they were consistently incorrect. This $10,000 cost would equal one sale at best. (My friend's department was responsible for tracking this monthly futility as all quality ISMs and IDs carefully looked at ROI. - $10g spent on direct mail a month would = $1g in profit. Where is the sense in that?)
Very recently, my friend left this dealer - support issue if you can believe it - and, just because this valued employee and his "team" that brought online success to the dealership had left, it doesn't mean one must give up hope and go back to old tendencies. Direct mail may have always been in their blood, but a 60,000 piecer?! It's gotta be a problem with the DNA that makes you choose to do this. So I learned the result of their massive mailer was, wait for it, 2 cars sold. That is correct. Two cars. $30g = $3g... maybe. I'd call up and shout out an "I told you so" or a "You still aren't listening to us?!", but it's not their fault. It's genetics.
Does losing the majority of an internet team (others left once my buddy had chosen to take a leap) mean you must go back to the ways of the wild, wild west? No. Processes were in place. Websites could have been updated. Leads were still coming in. However, this unnamed dealer had reverted back to what they knew. What their family and their family's family before them knew. They went back to paper.
This, my first blog, is not meant to be a rant against dealer ownership. After all, I still would like to think I have good relationships at my former dealer (though I was recently just denied from filming any more of my car sales-comedy sketches in their place of business - no reason given) This also isn't a blog to rip direct mail or newspaper - which may have its time and place - (in my opinion - newspaper ads can be printed during big holiday days and direct mail sent once a year). No, I hope this writing alerts dealers to the fact that unwise thinking never benefits them, no matter what their condition. Before I left, my department received 25% of the ad budget toward internet initiatives and would consistently yield over 60% of store sales (and up to 85% one month). Even without us, an upheaval in staff can be survived. Sure, dealerships are selling half of the cars per month they did in their heyday. You'd think they'd want to dedicate their ad money to something able to be tracked. The economy will turn around and consumers will once again walk through your door.
Turning their back to what works in today's time and gravitating back toward the paper-type advertising in play when their ancestors were alive will not their store survive. (Wow! That sounded like a sentence written by Cormac McCarthy. I'm proud of myself. Written just how I wanted it.)
I don't like taking an article like this to "the streets", but I believe, during these difficult economic times, dealers must look in the mirror. They must look at what is within themselves and decide if their decisions (be it caused by faulty wiring or the wrong synapses firing) are what's really the root of the problem. I think poor judgment (similar to what was described above) has to play a significant part. (60,000 pieces! $30,000?! It serves a dealer right to have a $3,000 or so return on that poisonous investment. You give an internet professional $30g and they'll turn it into $300g.) It doesn't take a genius to figure that out. Just someone with good genetics.