automotive strategies - amazon s3 · ‣ 78% of profits are retained ... dealership. both new and...
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Automotive StrategiesControl Your Destiny - Think Automotive!
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Over 40 Years of Combined Technology & Automotive Experience
Your Instructors
‣ Brian Anderson• BS / MBA
• Internet Marketing Since 1995
• Local Marketing Since 1996
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‣ Syd Michael• 17 + Years in Retail
Automotive
• Former GM
• Former Used Car Director
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“The course within the course”
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Facebook Mastermind
‣ If you haven’t already? Friend one of us on Facebook and we will add you to our Automotive Strategy Group
• https://facebook.com/atlantabrian or https://www.facebook.com/syd.michael
‣ Get Involved‣ Ask questions!‣ Share‣ #1 goal is to Educate, Train & give YOU the skills to CLOSE
more business!!Monday, February 4, 13
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US Retail Automotive Landscape
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‣ 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.
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Understand there are “two businesses” inside of each dealershipAutomotive Dealership Breakdown
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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
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‣ General Manager
‣ Service Manager
‣ Body Shop Manager
‣ Service Writer
‣ Service Technician
‣ Body Shop Technician
‣ Porter
‣ 78% of Profits are Retained
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To win - you must know what drives each person!General Manager - the “KING”
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Front End Back End
‣ General Sales Manager
‣ Finance Director
‣ Sales Manager
‣ Internet Sales Manager
‣ Internet Sales
‣ Website Traffic
‣ Showroom Sales
‣ Finance Sales (The Other “Back End”
‣ Service Manager
‣ Controls all Service
‣ Controls all Clean-up
‣ Controls all Get-ready
‣ Collision Repair Manager
‣ Parts Manager
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To win - you must know what drives each person!Dealership Approach & Direction
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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
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Automotive Dealership Breakdown
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Service Manager
‣ Controls all Service
‣ Controls all Body Shop
‣ Controls all Clean-up
‣ Controls all Get-ready
‣ Gets Paid On Back-End Profits Only
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Dealer Organizational Chart
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To be effective selling to dealerships, you need to understand the acronyms & language
Important Car Business “Lingo”
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‣ 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 Monday, February 4, 13
‣ 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 720 +‣ Bogue- Customer with less than avg credit‣ Roach- super bad credit
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Focus on Digital Marketing!2013 Retail Dealer Advertising Data
‣ 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. 2012.]13
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from June 2012 survey data2011 Retail Automotive Ad Spend
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Source: NADA Industry Analysis Division
Advertising % Spend by Major AreaNew Car Dealerships
OnlineNewspaperTelevisionRadioOtherDirect Mail
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Source: NADA June 2012 dataInternet Advertising Facts
‣ 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.
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$628Average advertising spend per car sold in 2011 (NADA)
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Small dealerships spend more per vehicle!Large vs. Small Dealership Advertising
‣ 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.
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(Per Vehicle spend based on 2011 NADA survey data)Sample Monthly Advertising Budgets
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Small ($788) Medium/Large ($628) Mega ($418)
100 cars sold
250 cars sold
600 cars sold
$78,800 * *
* $157,000 *
* * $250800
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