If cheap prices, the lowest interest rates, humongous cash rebates and free monthly payments worked, we wouldn't be in this mess. The dealers and manufacturers ads scream to anyone who can read, "It has never been easier in history to buy a vehicle!" So why are our showrooms empty? I guess nobody reads ads.
It is NOT about money, rebates or interest rates. What is 'messin' with the minds' of car buyers is their state of mind. Your ads can do nothing to compete with the free, negative advertising the media is promoting. The media's shock and awe campaign is like a war on our business. It is insanity that they should be biting the arm that feeds them. But it is what it is.
My experience as an automobile sales trainer is that some dealerships don't re-focus their energy effectively in the face of economic trials. For many heavy advertisers, these bad economic times result in even more advertising. More dollars, chasing fewer buyers with desperation messages is generally futile. You can't compete with the morning, noon hour and evening news.
If you have been in this industry for a few years, you have experienced a slowdown before. These situations are the perfect storm for dismantling dealerships that base their success on walk-ins. I've seen lean traffic times ravage many dealerships that were extremely profitable in the 'good times.' I am convinced those who survive now will owe it to what they are doing between 'walk-in traffic' in this down economic period.
Why People are NOT rushing into your showroom.
Customers who are overdue to replace their present vehicle are intimidated. They are responding emotionally to the fear-mongering around them. Most people are safe from the economic crunch that has hit our industry. Yes, it seems a lot of folks are impacted, but the facts are only one in seven people are directly hit. For those of us in the industry it feels like we are bushwhacked. But, the rest of the population is not finding their incomes in jeopardy or their mortgages unpaid. And recent government actions will relieve the pain. But your advertising will not drive buyers into your showroom to impact positively on your bottom-line right now.
TAKE ACTION
So your automobile sales consultants have to respond like the professionals they are and target the available buyers. Where are these buyers if not in your showroom?
They are in your past owner bank-some have been ignored for 4 to 7 years-some are orphans not adopted by a sales pro yet-some are in your service department repairing vehicles that really need to be traded-some are coming through sales calls and internet leads. Take action and become profitable.
REFERRALS -Keep what you have while getting someone else's.
Your competitor may very well be ignoring his past owners. Referrals from your current and past owners target potential buyers from other dealers. Solid referrals come from the workplace, the curling rink, the hockey rink, the coffee shop. Anybody you sell or have sold will positively influence their friends and contacts where to buy and from whom to buy. It is not rocket science, but the result will be sales growth from referral clients. But you have to be intentional.
I have clients who have been practicing these principles since day one when we installed Trackstar years ago. Because of this they continue to grow even in down economic times. You need to focus on relationships and maximizing repeat clients and target marketing, be-backs, service orphans, sales orphans, finance contract terminations, internet leads, sales calls. Trackstar does this automatically. See the short video-very profitable information. Just click on the website below.
Take on the elephant
Only your salesperson can change this situation. They will succeed when they reach out to your customers one-on-one. People only buy from people they like and trust. In tough times you have to have your sales team focusing on connecting with people, building trust and relationships, one customer at a time. Focus on selling by appointment. It is worth the effort-appointments have a 35 - 50% closing ratio! You don't need a lot to make money. You eat an elephant one bite at a time.
Time for your sales professionals to step up
People buy vehicles emotionally. It is all about creating emotional appeal in your buyers, one-on-one. Your customers need to be emotionally confident to make the decision to buy in this present market-your ads can't do that. Your car and truck ads don't overcome fear-they only give information.
