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Advice on overpriced used cars

Dan, having a good relationship between the New Car and Used Car Directors is very important. I would step up to help make deals and they would let me have a few cheap nice cars. I never got bumped on trades without approval.

Any idiot can steal trades and make big grosses. They can't steal enough of them to make volume. They go to the auction a pay, what looks like stupid money, for cars (relative to what they would put in the same vehicles in trade). If your Used Car Manager works under this philosophy, you will have a high percentage of auction cars. If they think like me, then they will have more trades.
 
Yago, you know him, too?

If I owned a store, I would pay a percentage of the total departmental Front and back gross, less advertising, floor plan and salesman's comp. for that sales department. I don't want people obsessing over average gross.
 
Yago, you know him, too?

If I owned a store, I would pay a percentage of the total departmental Front and back gross, less advertising, floor plan and salesman's comp. for that sales department. I don't want people obsessing over average gross.

Besides the fact that it truly happens, the cause for bad mid management habits are upper management lack of setting the proper environment.
 
Jeremy: Unfortunately, the average is RO is between 1200-1400. Every internal shop bill is looked over by the GM who approves them. Our pack is 2800. Between the 2 of them, we are at 4k additional (I know how high that is) In order to make any money we have to price way high.

Right now, I am working on getting a photobooth together so that I can take better pictures that what our dealerspecs rep takes on the lot.

Ed: Videos sounds like a great idea! Do you recommend piecing a slidehow of pictures together, or a bit more in depth like a quick walkaround on the car?

Thanks again!


On the subject of VIDEO. It's not often I go out of my way to recommend a particular service(s) but you're gonna need all the help you can get to move this overpriced haunted inventory. :shakehd:

I've always been a fan of UnityWorks Media. They do use stitched images of the vehicle to build out each video. However, they offer a lot of other flexible features within their videos. I believe they were the first and still one of the very few that use a real human voice over in each video. They also offer a New and Used Car Specials videos, employee video intros, service videos - , basically anything you want as long as you can provide imagery or even raw video clips that can leverage to mash-up in the videos. The better content, data and images you can provide, the better your videos will turn out.

The specials videos are great to re-purpose in your email marketing campaigns too.

Speaking of email, UWM also provides a UI that allows you to copy and paste the basic vehicle specifics along with an image of the video for each vehicle you have photos for. Quite handy.

As easy and as somewhat sufficient stitched videos are, lets agree it would be more beneficial to offer the potential customer something a bit more personal. The ability to possibly dive deeper into that specific vehicle the customer is interested in. The opportunity to also brand yourself while "WOWing" the customer enough that you greatly increase your lead to response rate (as in the customer actually calls YOU back).

I work very closely (they happen to be in my back yard) with a service called Authntk WalkAround Video. They provide a simple phone app for dealers / sales and service representatives to quickly shoot, upload and send a personalized walkaround video to the customer. It's cheap too. You just need to be sure you're staff gets comfortable with being in front of the camera. There's many features and ideas you can use video to engage with clients and prospects. Check'm out when you get the chance or think you're ready for in-house video.

I hope this doesn't come across sounds like a pitch. I have no affiliation with UMA. I'm merely speaking from several years of using their services.
 
Jeremy: Unfortunately, the average is RO is between 1200-1400. Every internal shop bill is looked over by the GM who approves them. Our pack is 2800. Between the 2 of them, we are at 4k additional (I know how high that is) In order to make any money we have to price way high.

Right now, I am working on getting a photobooth together so that I can take better pictures that what our dealerspecs rep takes on the lot.

Ed: Videos sounds like a great idea! Do you recommend piecing a slidehow of pictures together, or a bit more in depth like a quick walkaround on the car?

Thanks again!

Well the shop bills could be worse but of course the GM is going to sign off on them since he is paid on entire store, that is one issue, the Used car manager if you have one should be making that call. The pack is what is killing you, I have only heard one worse, a store had a $4000 pack now he advertised that he paid 60% commission so he had sales people beating down his door to come to work for him.

If it was me, I would be finding somewhere else to work any pack over $500 to too much IMHO and means the dealer does not have faith in his staff to earn the profit.
 
Besides the fact that it truly happens, the cause for bad mid management habits are upper management lack of setting the proper environment.

Show me any market leader and it has always been and will continue to be about the people and culture.

You must have written my last pay plan. That is exactly how I got paid, and I liked it!

Jeremy, Why wouldn't a dealer want to focus on departmental net profit and be aggressive in watching variable expenses? To do this, the dealer has to give access to the books and many can't accept that.

Often you see, "Responsible for departmental profit/loss" on resumes but is that really the case?
 
Show me any market leader and it has always been and will continue to be about the people and culture.



Jeremy, Why wouldn't a dealer want to focus on departmental net profit and be aggressive in watching variable expenses? To do this, the dealer has to give access to the books and many can't accept that.

Often you see, "Responsible for departmental profit/loss" on resumes but is that really the case?

I was saying I liked the payplan. Made everything very clear on how to keep up with it.