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What would you do?????

AdamMurray

Refresher
Sep 4, 2015
110
83
28
San Antonio, TX
First Name
Adam
I'm probably in the minority here, but one of my stores sells as many trucks out of the state of Texas as we do in the state. Some of this is primarily due to our extremely heavy involvement in rodeo and partially due to some very targeted campaigns we have put together in rodeo-heavy regions across the country. I'm sure some dealers in other states have seen our ads and said, "WTF? They're either lost, getting ripped off or just plum stupid!"

I'm not saying that is what you are seeing here but just throwing it out as a possibility. As we all strive to become Dealership 2.0, I think it is important to embrace the fact that factory dictated DMA's mean nothing and it is entirely possible to sell a vehicle to a customer 700 miles away and they never step foot in your dealership. I get very frustrated at times working for a dealer group with, to put it nicely, a very odd view of how dealerships operate...however, they embraced this "no geo-boundaries" philosophy a long time ago and have been very successful with it for many years.
 
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craigh

Super Moderator
May 19, 2011
1,674
1,097
114
Ontario, Canada
First Name
Craig
The root of the problem is most ad agencies charge a percentage of ad spend as their fee. If they don't exhaust there budget, their revenues drop. The solution is to eliminate metered pricing.
Pricing should be fixed or based on workload, not be a % of your spend.
Having the vendor be incentivized to convince you to spend more requires real trust.
 
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Reactions: Alexander Lau
Oct 23, 2017
13
4
1
First Name
Adam
Pricing should be tied to/aligned with sales as closely as possible. The good ad agencies would love to get all of the business currently going to bad vendors, so it's not just dealerships interested in creating these pricing structures.