Automotive Strategies

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Arlene Barnett
5 years ago
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1 Automotive Strategies Control Your Destiny - Think Automotive! 1

Marketing Since 1995 Local Marketing Since 1996 Syd Michael

2 Your Instructors Over 40 Years of Combined Technology & Automotive Experience Brian Anderson BS / MBA Internet Marketing Since 1995 Local Marketing Since 1996 Syd Michael 17 + Years in Retail Automotive Former GM Former Used Car Director 2

3 Facebook Mastermind The course within the course If you haven t already? Friend one of us on Facebook and we will add you to our Automotive Strategy Group or Get Involved Ask questions! Share #1 goal is to Educate, Train & give YOU the skills to CLOSE more business!! 3

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5 US Retail Automotive Landscape The US automobile dealer industry includes about 50,000 new and used vehicle dealers with combined annual revenue of about $700 billion. Major companies include AutoNation, CarMax, Penske Automotive Group, Asbury and Sonic Automotive. The industry is highly fragmented: the top 50 companies generate less than 15 percent of revenue. 5

Manager Sales Manager Sales Person Internet Sales Person 3% of Profits are Retained Monday, February 4, 13 General

6 Automotive Dealership Breakdown Understand there are two businesses inside of each dealership Front-end (Sales/Internet) Back-end (Service/Body) General Manager General Sales Manger Finance Director Internet Sales Manager Sales Manager Sales Person Internet Sales Person 3% of Profits are Retained Monday, February 4, 13 General Manager Service Manager Body Shop Manager Service Writer Service Technician Body Shop Technician Porter 78% of Profits are Retained 6

7 General Manager - the KING To win - you must know what drives each person! Front End Back End General Sales Manager Finance Director Sales Manager Internet Sales Manager Internet Sales Website Traffic Service Manager Controls all Service Controls all Clean-up Controls all Get-ready Collision Repair Manager Parts Manager Showroom Sales Finance Sales (The Other Back End 7

8 Dealership Approach & Direction To win - you must know what drives each person! Internet Manager (Sales/ Internet) General Sales Manager Internet Sales Website Traffic Only Paid on Front-End Store Profits Showroom Sales Internet Sales Finance Sales also referred to as backend profit, not to be confused with backend of store Only Paid on Front-End Store Profits 8

9 Automotive Dealership Breakdown Service Manager Controls all Service Controls all Body Shop Controls all Clean-up Controls all Get-ready Gets Paid On Back-End Profits Only 9

10 Dealer Organizational Chart 10

11 Important Car Business Lingo To be effective selling to dealerships, you need to understand the acronyms & language Wrench Average Service visit $$$ UPs Any customer / prospect that walks into the dealership. Front End This refers to the Sales, Finance areas of the dealership. Both new and used car sales. Back End This refers to the Service, Body Shop, Get Ready departments. PVR Per Vehicle Retail, this refers to the actual front end profit that the dealership makes on the sale of a 11

12 Walked A customer that is given info or test drove and let go without a sale. B-back Someone let go without buying that returned Demo -Test Drive or Loaner car to employee Bullets Perfect credit! Typically scores of Bogue- Customer with less than avg credit Roach- super bad credit 12

13 2013 Retail Dealer Advertising Data Focus on Digital Marketing! 2013 Ad Spend Forecast - About half of surveyed dealers will not increase their ad spending next year. Emphasis on Digital! Even those who don t up their ad budget in total will emphasize digital in the 2013 media mix. While about 2/3 s of dealers will spend more on digital, only 1/3 will increase their spending on traditional formats like TV and print. Dealers say as much as 35% of sales come from digital advertising. Dealers also like the easy-to-measure ROI offered by digital formats. [Source: LaReau, Jamie and Barkholz, David. Deals cautious about 2013 ad dollars. Autonews.com. 15 Oct ] 13

14 2011 Retail Automotive Ad Spend from June 2012 survey data Advertising % Spend by Major Area New Car Dealerships Online Newspaper Television Radio Other Direct Mail Source: NADA Industry Analysis Division 14

15 Internet Advertising Facts Source: NADA June 2012 data In 2011, Advertising on the Internet rose sharply -- for all sizes of dealerships. Dealerships selling over 750 units spent 23.5 percent of their advertising budget on the internet while dealers selling below 150 units spent 24.8 percent of their advertising budget on the internet. The most active Internet users were dealership selling between 400 and 749 units with a share of 26.7 percent of the advertising budget. 15

16 $628 Average advertising spend per car sold in 2011 (NADA) 16

17 Large vs. Small Dealership Advertising Small dealerships spend more per vehicle! The smallest dealerships spent more to reach their customers than the largest dealerships overall $788 per new vehicle sold, compared with $418 per unit at the largest dealerships. 17

18 Sample Monthly Advertising Budgets (Per Vehicle spend based on 2011 NADA survey data) Small ($788) Medium/Large ($628) Mega ($418) 100 cars sold $78,800 * * 250 cars sold * $157,000 * 600 cars sold * * $

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2011 Economic Impact Report

2011 Economic Impact Report The Economic Impact of Franchised New Car Dealerships on the Colorado Economy Sponsored by: DIRECTOR S MESSAGE & BACKGROUND INTRODUCTION President s Message Tim Jackson President