From my perspective, Zag is a cash cow. I'm paid solely on units and appointments. That of course raises the ethical dilemma of my own income vs. dealership profit. Of course the two are directly related and we certainly don't lose money via zag. It's just a matter of time and energy and the fact that every deal or negotiation becomes a huge pain in the ass.
None the less, I'd say I set 10-20 appointments per month from ZAG usually resulting in 3-6 sales. The appointment close rate is lower because it turns quickly into trying to explain, no we can't match so and so dealer's ridiculous $2,000 price under invoice. The reason they stop here first is we are the only dealer in our market with ZAG. We work the fee into the deal as well so I feel like we often if anything lose a price war to non-zag dealers rather than other ZAG dealers.
I've had success so far in this business because I'm genuinely an honest person maybe too much so for this business and when I talk to the customer personally they usually understand. If it's through email or if they come in and meet with someone while I'm not there, it doesn't go as well.
In the end, as long as it generates sales I guess I'm willing to deal with the BS. The sales staff can do what they will to generate gross and have had a little success making money on the back end and buying trades right.
Speaking of which...what the hell is with the policy that you "can't offer financing to pre-approved customers etc?
None the less, I'd say I set 10-20 appointments per month from ZAG usually resulting in 3-6 sales. The appointment close rate is lower because it turns quickly into trying to explain, no we can't match so and so dealer's ridiculous $2,000 price under invoice. The reason they stop here first is we are the only dealer in our market with ZAG. We work the fee into the deal as well so I feel like we often if anything lose a price war to non-zag dealers rather than other ZAG dealers.
I've had success so far in this business because I'm genuinely an honest person maybe too much so for this business and when I talk to the customer personally they usually understand. If it's through email or if they come in and meet with someone while I'm not there, it doesn't go as well.
In the end, as long as it generates sales I guess I'm willing to deal with the BS. The sales staff can do what they will to generate gross and have had a little success making money on the back end and buying trades right.
Speaking of which...what the hell is with the policy that you "can't offer financing to pre-approved customers etc?
