By Duane Sprague
Every
dealership, regardless of its size or market, can implement
several low-cost ideas to generate more sales every month,
even in a slow economy.
Every single
day, make it a goal to put "Would You Take" flyers on
at least 50 older cars.
This is a pre-printed flyer that simply says: "I would like
to offer you $___________ for your car. If you are interested
in easy financing to quickly upgrade your vehicle to something
newer, or more appropriate for your current needs, please call
me at 555-1212." Then put on it your name, your dealership
name and logo, your address and hours, and a customer testimonial
or two. Use a quality design and layout so it looks professional,
credible, and easy to read. Print two flyers per 8 ½ x
11 sheet, and cut them in half. Use at least two ink colors, and
full-color if you want to show some examples of newer cars and
trucks than what they are driving, to wet their appetite.
Or try this
version, which is easier and faster, because it does not require
a price offer, and see which one pulls better. "You can be
driving a newer, safer, more reliable car today! With easy financing
to fit every need, we have a 98% approval rate, no matter what
your credit situation. Call me today at 555-1212, and drive home
happy!" Again, include your logo, address, and hours of operation.
Now I ask
you, who is not interested in easy financing, that will allow
them to quickly upgrade their older car, for something newer,
safer, more reliable, or more appropriate? And then drive home
happy! Most everyone with an older car is interested in just such
a proposition, I guarantee it. Everyone wants a newer, nicer car,
they just didn't know they could afford it until you came along
and made it easy.
Done consistently,
you will be amazed at the response. And if you need even more
sales, just increase the number of flyers you distribute each
day. The business is there for the asking, but you have to be
creative, motivated, and go out and find it.
To save money,
eliminate newspaper display ads, and focus your print budget entirely
on classified ads. However, at the bottom of each classified ad,
place your logo in reverse type (white type on a black background).
This will make your ad and you name stand out, giving you the
name awareness and visibility of a display ad, for a fraction
of the cost.
Call or mail
to every past customer, to see if they or anybody they know is
in the market for a car. Offer them $100 for each referral who
buys.
Network with
independent body and repair shops, and offer them a finders fee
for any sales they send your way. Anybody who has their vehicle
in for major body or mechanical repair is most likely in the market
for a replacement vehicle. It's a good idea to have your brochures
in display in the waiting area, and at the desk.
As a closing
tool, every sales person should create their own "testimonial
binder" packed with solicited and unsolicited testimonial
letters from happy customers. When shown to the prospect as they
are waiting for finance approval, a trade evaluation, or whatever,
the testimonials build a solid foundation of credibility, trust
and endorsement, which will make the close easier.
The lot and
showroom should be decorated each weekend with balloons, banners,
and antenna flags, to create a festive sale atmosphere, and a
sense of urgency. Your lot and building should be clean, well
lit, and have a sign and logo that looks professional. Try lighting
the outside of your building with strands of professional grade
clear white Christmas lights. Use lots of them. It gives your
lot a unique festive look at night, that will stand out and get
attention.
Place a nice
magnetic sign on both sides of the car you are driving that day.
Put your dealership name, address, and a slogan that is short,
easy to remember, and beneficial to the customer. Better yet,
commit to driving one car for three years, and make it a rolling
billboard by wrapping the entire car, just like the city busses.
This will really stand out and get noticed. Park it right on the
front line each day, but drive it everywhere you can.
Research your
market to be sure you are offering the right makes, models and
price ranges for current market conditions. This will increase
your inventory turn rate and reduce flooring cost.
One of the
biggest expenses a dealership has is advertising. Learn how to
buy more TV, radio and newspaper advertising for less, and how
to plan your advertising schedule to be more effective. If your
learn how to do it right, you can save thousands of dollars every
month, and generate more traffic.
Want to increase
your gross profit by an additional $9,110 per month? I have developed
an easy formula if your serious. Based on the 20% average vehicles
in operation turn rate, as explained in the article in this issue
"Is The Used Car Industry Alive And Well?", if you make
only 5 quality contacts per day, working only Monday thru Saturday,
you will have contacted 1,440 people over a 12 month period. If
20% of these people are currently, or will be in the market for
a car within one year, and you only close 20% of them, you will
sell an additional 5 units per month. Five units at $1,822 average
gross profit per unit is $9,110 per month. This equates to another
$109,320.00 in gross profit per year.
