- May 1, 2005
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- Jeff
Thanks for sharing Berger. I'm always back and forth with this. I think I made a reflecting comment up there somewhere.
Looking through the lens of a marketer, having a "value proposition" makes it easy to differentiate the dealership. Something to brand the dealership with.
But..is it needed? Depends on the dealership. I like to believe Value Added programs are Bunk and if a dealership has a solid process in the sales department from beginning to end, has a great reputation and allows the customer to flow through the purchase..maybe it's not needed.
But also, consider the local competition. Do they have a value add and if so has it had an impanct on your sales and service?
My Nissan dealership had/and has a new Added Value Program. Nothing major like Lifetime Warranty but a value add none the less. Half of the customers that purchase aren't even aware of it. Yes, that's the fault of the sales department not using it to their possible (?) advantage, but this dealership has increased sales by almost 200% in a little over a year. Of course there are other variables to figure into the increase but the point still stands..most are not aware of the program and we continue to excel.
Side note: One of our closest competitors does have a Lifetime Warranty value add and they have done a great job at branding it as well.
With that being said, are we placing too much focus on the Value Add to initially sell cars to potential new prospects? What about service retention?
Great service retention has a direct impact on sales retention. IF you have a value added package, one needs to calculate the value from the front to the back. It's imperative it becomes the "brand" of the dealership and promoted across ALL mediums.
In the end, if you choose the right value add with the right positive calculated long term ROI, promote it across all mediums including the showroom floor. It could yield you a nice advantage.
Looking through the lens of a marketer, having a "value proposition" makes it easy to differentiate the dealership. Something to brand the dealership with.
But..is it needed? Depends on the dealership. I like to believe Value Added programs are Bunk and if a dealership has a solid process in the sales department from beginning to end, has a great reputation and allows the customer to flow through the purchase..maybe it's not needed.
But also, consider the local competition. Do they have a value add and if so has it had an impanct on your sales and service?
My Nissan dealership had/and has a new Added Value Program. Nothing major like Lifetime Warranty but a value add none the less. Half of the customers that purchase aren't even aware of it. Yes, that's the fault of the sales department not using it to their possible (?) advantage, but this dealership has increased sales by almost 200% in a little over a year. Of course there are other variables to figure into the increase but the point still stands..most are not aware of the program and we continue to excel.
Side note: One of our closest competitors does have a Lifetime Warranty value add and they have done a great job at branding it as well.
With that being said, are we placing too much focus on the Value Add to initially sell cars to potential new prospects? What about service retention?
Great service retention has a direct impact on sales retention. IF you have a value added package, one needs to calculate the value from the front to the back. It's imperative it becomes the "brand" of the dealership and promoted across ALL mediums.
In the end, if you choose the right value add with the right positive calculated long term ROI, promote it across all mediums including the showroom floor. It could yield you a nice advantage.
