Low Inventory = Marketing Budget Adjustment?

[Dan Sayer]

How are you handling low inventory, especially in New, and your marketing spend? Have you asked any of your Vendors for a price break, similar to last year when Covid hit?

Aside from our other makes, we have three, soon to be four, Ford locations and are anticipating running on fumes in June. No trucks, no co-op, no bueno. We are looking at trimming spend to align with what we can realistically sell and order in the next 60 days. What are you doing?

 

[Tallcool1]

I hadn't thought about this. I don't believe Independents will have much luck here, but the franchise side I would certainly think you could get a break until inventory levels rise.

 

[Ryan Everson]

How are you handling low inventory, especially in New, and your marketing spend? Have you asked any of your Vendors for a price break, similar to last year when Covid hit?

Aside from our other makes, we have three, soon to be four, Ford locations and are anticipating running on fumes in June. No trucks, no co-op, no bueno. We are looking at trimming spend to align with what we can realistically sell and order in the next 60 days. What are you doing?

All of a sudden third parties are wanting to switch from lot size based pricing to unique VIN based pricing

 

[NickA]

We have absolutely reduced spend. It's insane how lean our inventories are currently. We have requested price breaks from the third parties, cut those that don't want to play ball, reduced digad spend. Some of our stores are in rural areas where we have kept our local community spends flat (HS sponsorships, local rodeo, county fair, 4H, etc.). I'm always willing to listen to new ideas and products, but don't see the need to add any new vendors at this time.

We have also switched up some of our messaging..."Don't see what your looking for? We can custom build the perfect vehicle for you", "We Buy Cars", "Your Car, Truck or SUV will never be worth more", etc., more of an acquisition theme. A recent email blast to our data base has generated quite a few opportunities for our used car departments with this theme.

With the cuts in spend, selling pretty much anything we can get our hands on, along with the rock solid gross, things are amazingly good...for now.

 

[Rob]

How are you handling low inventory, especially in New, and your marketing spend? Have you asked any of your Vendors for a price break, similar to last year when Covid hit?

Aside from our other makes, we have three, soon to be four, Ford locations and are anticipating running on fumes in June. No trucks, no co-op, no bueno. We are looking at trimming spend to align with what we can realistically sell and order in the next 60 days. What are you doing?

No cuts, yet. Some shifting from new car to used car. Cuts could certainly come over the next few months, depending on inventory levels.