Those of You In Super Competitve Markets, How Do You Even Stand Out?

[kcar]

Competing against 4 same brand dealerships within like 10 miles alone. Not to mention there's another 1,200 dealerships surrounding us from state to state with every choice and brand possible. Plus auto-malls, huge dealer groups, etc. I'm starting to think leveraging features, customer-focused website, reviews, model-walk-throughs, videos, etc. none of this is going to work well. This market is so full, people barely have time to browse about us online, they just browse the inventory.

So what should be done to stand out? Aside from traditional ads, tv, etc. Should I just focus on the cars with videos, vehicle comments, crazy low prices, specials, etc.. Even with #1 rankings for every possible serp keyword and an amazing seo optimization, I'm starting to think even that won't work...

Are some dealers just location and market bound to the point where they can't do much? There's dealers around here with huge inventories, in the perfect location, they sell a ton of cars. They don't have any zmot, their features are weak, and their reviews are just "okay". Then there's dealers in further locations, decent inventory sizes, awesome features, great zmot, awesome customers, but they can't sell much and struggle.

?

 

[mcampo2501]

I'd start by not trying to be number one. If there was one thing any of us could do to jump into first place against every brand and franchise in our markets, we'd be doing it. Have a realistic goal. If you consistently finish 5th in your market, set your sights on 4th. Success isn't always measured in units, though the manufacturers will tell you otherwise. Get a loyal following, drive your service business, customer retention programs, and treat the customers like gold. Word will get around and you'll find your market share will grow. If you give away all your inventory to be first and the dealership goes bankrupt to get there, you certainly wouldn't have succeeded. I don't believe in the low bid sales model. It sounds like you're doing everything you're supposed to be doing. Are you happy with your close ratios? Is your phone traffic being handled well? Spend money taking what business you already have and capitalizing on it. You can't move the brick and mortar, so make the most of what you have and hang your hat on it. That's all any of us can do. Certainly your boss, and his boss understand that. If not, you probably need a new boss.

 

[john.quinn]

Truly, truly focus on the customer, and you will differentiate yourself.

Be a destination where people really like you, where people talk about you and the wonderful experiences they have with you, and you will be very profitable for a long, long time.

 

[ddavis]

I agree with John. I was at a store that did a huge repeat and referral business and it made things much easier and profitable.

That being said, the customer, that isn't familiar with your store, wants to know if you have the car and what you will sell it for. They don't care what awards you have won. If you have the car, at a good price, they will buy it from you or even the strange guy with the purple tie. It is about the deal.

 

[joe.pistell]

In 2003, I went down this road your on Kcar. Did everything you are doing and... Little ROI came from it. It pissed me off. I learned that inventory count trumps everything. Shoppers are on a mission and inventory is what they're seeking. Selection to a shoppper is like a flame to a moth.

Remember selling cars is a team sport, you're one player on the team. From our POV, each unit on the ground is an advertising opportunity, the larger the inventory the more leverage your efforts will have.


Work for your resume and keep an eye out for big players looking for talent like yours.

 

[billnj]

The reason that there is a dealer on every corner is because you're in a huge market with lots of buyers. We tend to fall short of seeing that, all we concentrate on is "OMG there's competition EVERYWHERE!".

We're not #1 in our market, well, one of our stores is often close in our area, and another is in the top 3, and has been #1.. but still... We just concentrate on doing a good job, we're always going to have someone who lives across the street who buys from the competition, and we'll always fight those stores, it's part of life.

With used cars we watch our pricing, and we have been shying away from cars with thin margins, it's hit or miss, but certain off brand used cars are very profitable for us and we do quite well with them.

 

[danoneil]

www.hooklogic.com

 

[kcar]

In 2003, I went down this road your on Kcar. Did everything you are doing and... Little ROI came from it. It pissed me off. I learned that inventory count trumps everything. Shoppers are on a mission and inventory is what they're seeking. Selection to a shoppper is like a flame to a moth.

Remember selling cars is a team sport, you're one player on the team. From our POV, each unit on the ground is an advertising opportunity, the larger the inventory the more leverage your efforts will have.


Work for your resume and keep an eye out for big players looking for talent like yours.

Thank you.. You raise another question, when do you know when to increase your inventory? For used cars.. If a dealership stays the same offering 100 used cars, month after month, for years will they never grow? Even with increased marketing and dealership changes, how does the dealership know when to add more? Sales? But if they never take risks to increase their inventory, how will they ever see their sales increase? You or someone else here said dealers turn their inventory 6 times a year, so if they increased their inventory by 25 used cars, would they sell another 150/year if the marketing matches the change?

And if so, in order to increase, what holds a dealer back from doing so with their inventory?

 

[joe.pistell]

Thank you.. You raise another question, when do you know when to increase your inventory? For used cars.. If a dealership stays the same offering 100 used cars, month after month, for years will they never grow? ...[snip]..., in order to increase, what holds a dealer back from doing so with their inventory?

kcar,

Remember, selling cars is a team sport, LEADERSHIP sets the business goals and expectations. Your entire question focuses on the responsibility of the HIPPD*. 98% of HIPPD's make a very comfortable living and FEAR of losing this comfortable living rules all other thoughts.

The questions you ask are outside your "sphere of influence". You must recognize that you cannot motivate the HIPPD to become more aggressive, you are simply a player on HIPPD's team. If your goals and expectations do not line up with the dealership you're working with, then work hard on your resume and be on the hunt for a dealership/dealer group thats more aligned with your goals.

UNCLE JOE RULE #113
In business, when you solve one problem, you create another.

Look deeply before you commit to change.
IF you find another dealership to work from, they may not allow you the freedoms to explore and learn (like you are doing now). You could easily land in an organization that has no idea how to enhance creativity and still sell cars. Where ever you go, you MUST look for signs that this culture exists BEFORE you arrive (because this is the HIPPD's responsibility, not yours).

Given your writings, if I were to assess where you are, we ALL at DR are watching you mature. The quality and depth of your questions is improving. I see you are taking on questions that relate to the OUTPUT of your labor, this is a very good thing.

Before you even think about jumping ship, I like where you're going, I'd like to see you roll up your sleeves and continue to work with sales and management to educate them. This is outside your comfort zone, but, communication and social skills are 100% connected to your future pay. You must get out of your office and work with the troops to help them sell more cars.

That experience will be priceless.

*HIPPD = Highest Paid Person in the Dealership

 

[JamieS]

I feel you kcar. We've been working very hard on improving the customer experience and will be trying to use that as a foundation to build up on as opposed to just spending more and more on advertising. Once we as managers bought into the sort of Field of Dreams idea of "if you build it...." things have been different. It's been an uphill battle but we've made big changes to our hiring and training processes that seem to finally be paying dividends as we sold more cars last month with less leads, nearly doubling our closing ratio. Like Joe preaches and as with any business, it's a team effort.

I also have had to roll the sleeves up as Joe mentioned too. Taking it upon myself to just get involved more in other departments. Sharing knowledge with BDC, Sales, and Service and simply help where and when I can.