What Is Your Dealerships Product?

[Alex Snyder]

Our manufacturers and vendors can answer this question easily about their own businesses, but can the dealers? A product is a "thing produced by labor or effort. "A "thing" isn't always something physically tangible.

What is the product of a dealership?

This isn't a question anyone ever answered for me directly. It wasn't something anyone directly trained me on, as I think it was just assumed I knew it.

The product of a dealership is the dealership.

I must admit, it is quite the duh statement. There really isn't anything special about it, but once it is stated so plainly it makes all the sense in the world. Was this ever defined for you?

Now that we know our product is our dealership let's talk about what a quality product is. We also know what that is. It is simply something you want to buy. The level of the quality determines the price.  It is a brand; it is a reputation. A quality product easily creates referrals, it doesn't have to ask for reviews, and it generates fans.

Look at Apple. They build operating systems, but there are plenty of choices in operating systems. So why do Apple's customers hang on its every new "thing" and talk about it like they're part of a cult? Why do they pay more for it over and over and over again?

We can talk about Apple and everything they do all day long, but I'd rather you think about how your dealership is a product.


How is your dealership a quality product?

Is it time you define that for your coworkers and staff?

 

[highlight color="#fddcaf" font="black"]For further reading on this subject, check out Bob Lutz's new book:  Car Guys vs. Bean Counters:  The Battle for the Soul of American Business [Amazon].  Yes, this article was inspired by this book.  It is definitely worth the read.[/highlight]

 

[Craig]

Alex,
I'm digging this post....whether or not Ed thinks it's crazy talk.

I think building a brand and selling that brand is the difference maker in lots of transactions by the time we get face to face with a customer.

How and where we "sell" that brand is the whole other discussion that happens on here with the majority still not understanding the where to sell that brand is in space....digital space, that is.

 

[Alex Snyder (blog)]

After talking things through with Ed, in direct tweets, I think he had the misfortune of hearing this notion first from someone who is a bit less "articulate."  I don't know exactly what that other person said, so I can't say whether we are on the same page or not (usually not).

At the end of the day there are two things I'd like people to walk away with after reading this article:

1.  It is all about your dealership.
2.  Read Bob Lutz's book.  

 

[Alex Snyder (blog)]

After talking things through with Ed, in direct tweets, I think he had the misfortune of hearing this notion first from someone who is a bit less "articulate."  I don't know exactly what that other person said, so I can't say whether we are on the same page or not (usually not).

At the end of the day there are two things I'd like people to walk away with after reading this article:

1.  It is all about your dealership.
2.  Read Bob Lutz's book.  

 

[Craig]

I'm going to Audible up Bob's book if it's available.....because like Ed sometimes my brain gets a little mushy from debating with a monkey online throughout the week.

 

[Ed Brooks]

Alex, I'll admit my brain became a little muddled with another person's views on a similar subject. I still feel that the "product" we sell is a car. It's about rolling iron over the curb. That said, if you don't establish a brand for your dealership and work hard to differentiate yourself from the pack, then your efforts as a marketer have failed and you will have far fewer opportunities to move the metal.

I agree with your two "Walking Away" points wholeheartedly!
1.  It is all about your dealership.
2.  Read Bob Lutz's book.

... but we could argue for days on the definition of "Product"

 

[Michael Thompson]

Great article Alex.

The part that gets interesting is how dealers execute and communicate that that quality product across all of their marketing outlets (especially in the digital realm).  Very many dealer websites out there that do not effectively communicate a dealers quality product (or even a "why buy from us" statement) whether it be a slide on the home page or even a blurb on an "About Us" page.

 

[Jeff Kershner]

You're "product" is what you make of it.

Cold Stone Creamery - is ice cream the product OR is it the all the delicious toppings and flavors being mixed in by the servers behind the counter using those special spoons to scoop, slice, throw and mix that sundae into a cone of pure bliss?

It's just ice cream.

Spotify - is music the product OR is it the ease of sharing with friends and receiving live recommendations, syncing with all your other devices that house the Spotify app?

It's just music.

ShowBiz Pizza - was it just pizza OR was this a magical land where to the Rock-afire Explosion would take stage with Billy Bob Brockali whaling away on the guitar while Fatz Geronimo was keeping the band in sync with his wicket beats on the drums? This was the original place "where a kid could be a kid".

It's just Pizza.

Ok - maybe I'm taking it a little too far After all, we're just here to sell cars right? Heck - anyone can do that. There's an endless supply of people and they all need to eventually buy a car. There's an ass for every seat.

Screw that - If it were my dealership, my business, my heart and soul, you better bet it would be a "product".

 

[JQ]

Jeff Kershner: [Screw that - If it were my dealership, my business, my heart and soul, you better bet it would be a "product."]

Would it?  Or would the DOLLAR be the heart and soul?

I know very, very few people who get into this business for the LOVE of selling and servicing cars.  I know quite a few people in this business who LOVE making the income you can make in automotive.

So then, maybe, your "product" is your "focus?"

 

[Ed Brooks]

OK Jeff - Point taken. I'd still contend that "product" of Cold Stone Creamery is the ice cream (with all the delicious toppings and flavors being mixed in). The product alone isn't only the REASON people eat there. But, that product (the delicious ice cream treat) still better be good.

At a car dealership there will be many reasons for a customer to buy from you including reputation, location, etc. But at the end of the day you're selling a car. You can't expect a customer to buy a car they don't want at a price that doesn't make sense - at least not very often. EVERYTHING matters but the car is still the product we retail.

A bad product with lots of nice amenities surrounding it is still a bad product.