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Do we think the consumer is stupid? Or is the joke on us?

Awesome article Alex. You rang true on a lot of points. Dealers often think they are doing things the right way because everyone else is doing it. In reality, most of the time they are following someone else's bad practices just to keep up. It's the dealers who really put themselves in the mind of the consumer that win. Ask yourself what you would want to see on a dealer website if you were looking for a car? Do you want a simple clean site with easy navigation? Yes! Do you want gobs of easy to retrieve information about models, pricing, rebates, and reviews? Yes!

I know I am turned off by those welcome videos, at least the ones with autoplay set to on. Lots of customers browse your site during the day while they are at work. They don't want the blaring audio to get them in trouble. Again, great post!

Do we think the consumer is stupid? Or is the joke on us?

Brian - what I think and what works in your market could be two different things. Only you know your own market well enough to know whether something like that works. But I think you know my opinion on that.

Dano - I don't have a problem calling people out if they deserve it...Meaning...it affects me directly. But this particular dealer isn't hurting me. I'm not going to point directly at him - especially since I respect that particular store.

Do we think the consumer is stupid? Or is the joke on us?

drthis.gif

One of our GM's sent me an email with a link to another dealership who had a welcome video on their homepage yesterday. He thought it was very good, and he was right! The video quality was good, the speaker was good, and the background looked good. It was a good welcome video. The only problem is that I hate welcome videos, and this one was no exception because aside from welcoming me to the dealership website it was telling me how to use the navigation bar C'mon.  Seriously.  Obviously this dealership thinks I've never been on the Internet before.  I wanted my 30 seconds back after that. If I were shopping for a car I may or may not have started with the dealer's website, but chances are I wasn't born yesterday, bought a computer, then decided it was time to buy a car and I was going to start with a dealership website. It is probably safe to assume a consumer knows how to use your navigation bar. And that dead horse has been beaten.

Sorry about the rant, but I figured I'd give you some incite into what enticed me to write this article. It wasn't just another dealer's welcome video, but that was the final straw that broke this camel's back. For years I've been looking at some really dumb stuff in our industry. Whether that be the newspaper ad with more disclaimer than ad or a car being released called the Aztek, we have all done or witnessed some moranisms (like that word?). Let's talk about some of the genius work that is happening online...maybe I should contract with a publisher before I get started on that.

On second thought I don't have the patience for a publisher so let's begin with where a lot of this started:  the manufacturer. Granted, when the Internet became a consumer device none of us really knew how to tackle it for selling cars.  You couldn't box a car up and ship it somewhere as easily as you could a book. Forget the past, let's look at 3 things the OEM's still dictate we dealers do:

  1. Some, not most, still require a dealer to go to a special Internet Lead Management site to only respond to a lead for the first time. WTF is that all about?  So we responded once - I guess we're going to sell that Hyundai now!  Why don't all the manufacturers work with the CRM companies to help dealers streamline their processes and sell more cars?
  2. What is the point of these OEM-dictated websites anyway? If you're going to force my hand, why have them? Just build one VW or MINI website and show the entire nation's inventory then have a specials section that dealers can upload specials to. You're not offering a benefit to the dealer or the consumer by forcing uniforms in school. And last I checked your corporate representative either doesn't live in this marketplace, just moved to this market, and probably doesn't have a degree in advertising so what makes you think you know how to market in this market?
  3. Are you so naive to think a consumer looking for a Honda is not going to look at a Camry too? Why do manufacturers require these dealer OEM sites? This particular thing hasn't been talked about too often, but I think it is so silly to have them. There is no other industry that I know of who separates its products. If I am in the market for a TV, I go to Best Buy's website and can look at Sony's and Samsungs right next to each other. Why do we make consumers jump through these silly hoops?

How about a quick look at some of the things we dealers do to keep the rule of equal incompetence going strong:

  1. Egos: whoa buddy we've got some big ones 'round these parts. Let's put someone with a face for radio and a voice for the newspaper into a video on our homepage...or on TV. Let's put a welcome message up telling us how to use the nav bar. Who wants to see that?  What other industries use a welcome message anyway?
  2. Frames: I like frames for things you can't duplicate with your site provider like the service scheduling modules. Until the site providers build this technology themselves, I think frames are the only way to do this.  The frames that are bad are the ones where a dealer was too lazy to update the incentives/specials so he just framed in Honda's national website showing the current Honda incentives. That page was never intended to be a frame, so it looks like you've got a website inside a website with links to your competitors. That's just dumb.
  3. Video: we have gone wild with video. I think some dealers are just running around with a video camera and throwing it online without any editing or thought as to what the message is. Before you ever hit the record button you need to think about what you're trying to do - what is the message you want to get across and if it is how to use your navigation bar...um...you might want to think a little harder. You really don't want a consumer wanting those 30 seconds back. Oh yeah, that older generation who we think can't use the Internet isn't watching your videos - they're reading your site content instead (that generation read books) - don't put a welcome message telling them how to use the nav bar because they're never going to see it.
  4. SEO: I'm guilty of this, but am making an effort to get away from it. Yes, SEO is extremely important, but not the generic content of "Thank you for visiting our online dealership in Virginia Beach, Virginia where we carry blah, blah, blah" - nobody wants to read that and I believe you're just training your visitors to ignore the written content on your site. We need to get more creative with this.
  5. The About Us Page: do you even pay attention to this page on your website?  'nough said.
  6. Site statistics: the most overlooked statistic in a dealership, but just as important as knowing how many customers walked in the door last month. I guess we still view our websites the same way we looked at television, radio, and newspaper ads: with a quick question - "Did we get any floor traffic off the website this weekend?"

I can go on and on. I'm sure many of you can continue to add to what I've typed, and we could do this forever. The real question is what are we doing about it? Are you even aware of these things?

Yes, I am totally aware that the automotive industry is a different retail beast than any other industry, but that doesn't mean we can isolate ourselves from the rest of the world. If you do any online research or shopping, then you probably know what you like in a retail website and what you don't. Have you ever thought that your customers may have those same opinions? If you could figure out how to navigate another website's nav bar, maybe your consumers can figure out how to navigate yours. And no boss, you don't get prettier with age.

</end rant>

Disclaimer:  can I make this longer than this novel of a blog article like one of those dealer newspaper ads?  Nah, I'll be serious here.  Debate is something that makes us better. If you don't like some of the things I've stated here, I can assure you my intention was not to insult you.  This is an attempt at education or at the minimum to spark a debate on some of these topics.

To my GM - keep bringing me all your ideas.  You're one of the most innovative people I know and value your opinion anytime you want to give it.  Even if my answers are a little harsh or blunt from time to time, just brush those off your shoulder and keep things coming!  Let's continue the debates.

Before You Sell that Used Car, SELL that Used Car!

Great points made thus far...tools like vAuto are excellent and will get you in the game in regards to internet pricing and wholesale vehicle acquisition(we've used vAuto where I work for over a year). However, at the end of the day the same things that have moved cars for 60+ years apply today: clean/mechanically sound vehicles that elicit praise and not apologies, pertinent and informative marketing (multiple photos and great descriptions on websites like Autotrader and Cars.com) and an product-educated and engaged staff that can give a great walkaround. If your store is weak on the basics, utilization of tools like vAuto are the least of your worries.

Before You Sell that Used Car, SELL that Used Car!

Great topic! Another avenue to unburden yourself from aged units is to use online marketplaces to sell them to another dealer, who may have more success. DealerGenius.com is a good one (its the one we use), but I am sure there are others. It never hurts to have constant feelers out there in case you can unload one of your aged vehicles. We also sometimes offer a bonus to the sales professional each month who sells the oldest unit.

Before You Sell that Used Car, SELL that Used Car!

A car dealership or vehicle local distribution is a business that sells new cars/ old cars at the retail level based on a dealership contract with an automaker. It may also provide maintenance services for cars. It will not cost much if you purchase an old car instead of new if you are getting good deal.

Used Car Dealers

Before You Sell that Used Car, SELL that Used Car!

I don't this as a problem of clean cars, or pricing, I see it as a issue revovling around the sales staff working the system. I believe that if you can get your sales staff to focus on what's important the unit will sell...Commission.
Get your sales staff to focus on creating their own commission based on unit age. In the example above the BMW would be paying an additional $93 in commission. Plain and simple if you offer a $1 per day for inventory you'll notice sales people showing the oldest units first. That 93 day old unit looks a lot better when there's a $$ sign base on the age. I really don't believe you have to lower the price to a break even point to get the customer interested. I believe that's the sales persons job.

It's time to get creative. Don't let your sales staff be the tail that wags the dog. Get them selling instead of working the desk for their commission. I've done this and it works.

Before You Sell that Used Car, SELL that Used Car!

If you haven't read Velocity by Dale Pollak yet, I highly suggest you buy it off Amazon. It will change the way you think about your used (and new) car inventory.

I second Jeff's comment about what if everybody used Vauto. It is only a piece of technology suggesting you to buy a certain unit, price it a certain way, appraise a vehicle at a certain value, etc. There are still way too many people in this industry that will ignore what a silly computer is telling someone with years and years of experience what to do. To those experienced "know it all " people, I say, thank you...keep thinking that way!

I just dropped AAX and signed on with Vauto on Friday. Installation should be complete by next week...looking forward to it!

Before You Sell that Used Car, SELL that Used Car!

Great topic Jeff- One thing salesmen also fall into the trap of is "It's an old age unit" thinking it should qualify for a greater discount. Problem is, it is NEW(er) to the prospective customer. Furthermore, assuming it is an Internet customer, they have specifically chosen THAT vehicle for some reason- found out why.

One thing does need to be said though, that 03 Jag X type has dropped in book value more than a little in the last 4 months since it was entered into inventory!

Before You Sell that Used Car, SELL that Used Car!

Speaking of vAuto, I wrote a piece on this subject that will HELP sell aged units.

------Do You Know Your DSD?------

DSD = Days Since Detailing

Clean cars sell for more and I have proof. First, let’s explore the study by Manheim and their findings, then, let’s make MORE money together.


Its a cycle:

Cleaner Inventory = More Turns
More Turns = Cleaner Inventory.

one pushes the other, over and over again.

Results?
Cleaner Inventory = More Gross.

Joe

Before You Sell that Used Car, SELL that Used Car!

I just heard one of the best pieces of advice from vAuto: use technology to plan your exit strategy before ever buying the car.

With technology capable of telling you how a car ranks in the marketplace, it is easy enough to calculate what your absolute worst retail price should be and what a "quick turn" price is as well. Use those figures to trade and buy the cars so you have a pricing strategy up front for each vehicle.

Dealer's Digital Marketing Guide to SEO, SEM and Social Networking - FREE Webinar

###
The best non-dealer SEO’s that I know of, don’t even have websites; referrals and results drive their business.
###
^^^^^^^^
Automotive SEO's fall into that category too.

Real SEO's in any niche do not put on a public display of keywords on a marketing site.

That is a bad practice asking for disaster.

With the economy hurting in all niches and the average lead affiliate generating $12 CPA, somebody could come along and make your job a lot tougher....

Dealer's Digital Marketing Guide to SEO, SEM and Social Networking - FREE Webinar

The amount of censorship of these comments are getting ridiculous Jeff. I know you have to protect your advertisers, and I respect that, however anyone can anonymously post anything on these comments, fake reviews of products can be made, (not that they are, of course these are all real people with real reviews, right, right? anyone?) By the way, I am not actually George Bush but I play him on TV.

Rick Astly now is endorsing Pasch's offerings which perhaps has led to the resurgence of his career. Kudos on that. That's amazing results and deserving of some sort of SEO Award.

There is no validation on the comments, and anyone with an aircard can change IP's at the click of a button and repost. I'm all for promotion and advertising but how much of this is real and how much made up? All of the negative reviews are coming and going as fast as they are listed. And it's too bad about Skidrow- I heard they were making a comeback =)

As with any company, nobody's perfect, and some are excellent but let's not see this site have this high level of blatant censorship nor should it be falsely manipulated for personal gain through fake reviews, although I'm sure Rick Astly is happy with his great personal service...

Dealer's Digital Marketing Guide to SEO, SEM and Social Networking - FREE Webinar

I have a (tongue-in-cheek) love/hate relationship and respect for Pasch Consulting.

I love them because there are very few trustworthy and respectable SEOs that can deliver REAL results. At the top of this list has to be Pasch.

I 'hate' them because they REALLY make ranking top 10, for the same thing you're trying to rank for, extremely hard. It's gotten to the point where I don't even have to dig into someone's SEO campaign when we're getting boxed out, to know who's running it.

Of course I don't really hate them - I do look forward to this seminar - and perhaps I can figure out the Pasch Magic Sauce.

------

There's an old saying - of which I forget the exact wording - but it's along the lines of the cobbler's children walk without shoes.

The best non-dealer SEO's that I know of, don't even have websites; referrals and results drive their business. I can't help but notice that of the Pasch clients who chimed in above, they're all ranking rather well:

Massachusetts Infiniti Dealers

Massachusetts Nissan Dealers

Arizona Infiniti Dealers

If it were me, that's all my business card would have - links like that and on the back of the business card a credit card authorization form. :)

Chip-

PS: I've never in my coding life written a page that validates - but I blame Microsoft for that :).

Dealer's Digital Marketing Guide to SEO, SEM and Social Networking - FREE Webinar

We are in a ferociously competitive market; we like to win (and almost all of the time, we do); we seek out only the best to help us. We brought on Pasch Consulting about 15 months ago. The benefits to our internet presence have been astronomical. Brian is smart as hell, works his tail off and demostrates his commitment to our success virtually every day.

We resist pointing out the faults of our competitors. If we were to do that, it would cheapen us in the perception of those listening, do little if any damage to the competitor and not help our business.

But it takes all kinds, I guess. Keep up the great work Brian.

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