Automotive Dealers Selling More

Why is the guy down the street selling more cars than You?

You’ve heard it said a thousand times before: “My competitor sells more cars than I do.  We need to get more market share and outsell him.  What is he doing that makes him a bigger dealer than us?”  Well, the answer to these questions are more complicated than they seem.  There are several reasons why one dealer may outsell another.

First your competitor probably spends more money in advertising than you do.  Advertising dollars usually translate into sales.  Oh sure some campaigns and some methods of advertising are better than others.  Nevertheless, you can typically look at what a dealer spends in a market and see a direct correlation in sales.  I know dealers who set their budget each month to hit a certain number of sales for that given month.  One thing is for sure: if you don’t spend money in advertising, you won’t make the sales.  Once in a while, you will get lucky and have a good month with a lower budget, but that way of thinking will catch up with you sooner or later.  You may not spend a lot of money in June and still have a good month, but you will begin to feel the pain in July or August.  Spend money in advertising; it’s probably the most important investment a dealership can make.

The other reason the guy down the street may be outselling you is he may be smarter than you are.  The truth is, he is probably making better decisions on how to position his store and how to spend his advertising money.  He is probably committed to a plan and has a different way of thinking than you do.  The old adage has never been truer when it comes to advertising: “You must spend money to make money.”  Here are a few tips for becoming a better marketer:

1. Think your advertising through.  Invoke your managers.  Make this a priority in your dealership.  This is an expensive proposition:  it can make or break your bottom line.  Plan on a weekly advertising meeting and follow through.
2. Find good people who not only know how to make good ads but also know the car business.  Too often, you have GSMs trying to design ads.  Stick to selling cars and find the right people who know how to handle the advertising.  Coast to Coast Direct Marketing does just that!
3. Find out what is working for other dealers around the country.  Good ideas will generally work well in all markets.

So, the next time you see the numbers of the guy down the street, think about it and act on it.  There is no reason why any dealer in the country can’t increase sales if they are committed to the process.  But remember, you need to spend money to make money.