So if you’re thinking about “Loading Up” for tax season, please remember it is VERY easy to run out of money before tax season even hits. Yes, you may have a $200,000 Floor, however reconditioning, advertising and selling are CASH-OUT-OF-POCKET. That can be the point of tipping in the “red” for a lot of dealers – seasoned vet and newbies alike!
Following the herd could lead you into financial jeopardy.
Your real meal is your MONTHLY sales – I highly recommend you put your effort and money into where it counts the most – YOU.
For the smallest dealer to survive and grow – 10 sales per month NETTING (after ALL expenses) $800 per unit.
To really GROW a Dealership you will need to be at 18 units sold per month -netting $1,200 per copy.
Other than that – you’re treading water and it’s only a matter of time.
The goal is to increase sales 15% per quarter.
10 sales × 3 months (quarter) = 30 sales.
Multiply that by 15% and you come up with another 4.5 units to buy/recon/advertise & Sell!
It’s called RYTHM and most dealers are hit-and-miss.
Do you have procedures in place so that anyone can follow in your footsteps should an emergency arise?
- Standard Checklist your mechanic(s) follow with EVERY unit they inspect/repair.
- DMS that is easy to use and prints all required paperwork with the click of one button
(I have been recommending and representing Frazer for 13 years because it’s that easy and has the Best Tech Support in the Industry.)
- Presentation – does a Detail company come in or is there a Standard all units are done to by yourself or an employee
- Are there “Internet Down Tags” ready in your drawer?
Do not be the dealer that says, “I had a great week – sold 6! – I had a horrible month, only sold 7 total.”
No consistency = no growth!
Smart money this year is to concentrate on your dealership.
Give people a REASON to buy from you (not just a CHEAP price).
For over 2 decades now I’ve been training dealers/sales people and the major point they all seem to miss is?
People buy VALUE.
The instant your prospect’s PERCEIVED VALUE outstrips the price of your vehicle … people SELL themselves!
Spend this tax season investing in you, your lot (never get a 2nd chance to make a 1st impression.)
Is your lot clean, picked up and ONLY Front-Line-Ready units on display?
Is your building pleasing to the eye (bad paint, cruddy stairs – not a good impression)?
Is your office (desk) clean and professional looking (or does it look like a parts yard)
Is your furniture in good repair, easy to move about and comfortable?
Is your bathroom SPOTLESS and well stocked?
Are all tires aired up, cars start easily (all have GAS)?
Are Demonstration Drive Plates in the trunk of each unit?
Invest in your “Main Lot” – your website!
Is your website mobile friendly & fast loading?
(don’t have one/need one; then call me – I’ve got a great one and inexpensive too.)
How many pictures per unit on your inventory (30 pic min per unit.)
Do your pictures show the good AND the not so good?
Show them the scratches/dents/minor imperfections – no surprises when they show up to buy the unit.
If you finance or arrange financing do you have a SECURE credit application on your page?
With that credit application –
What are your policies and procedures for keeping your prospect in the loop AND are you compliant with the current HIPPA procedures (OPT out email & texting) in doing so?
Your Inventory – What are you stocking in and how long before it’s “stale”?
Tools like MMR, KBB, Black Book (not so big here) are essential in keeping you on track in the marketplace.
Carfax / AirCheck are also tools that are requested and becoming a “standard” in every sale (that means – spend the money for one and “cost” it back to the unit just like advertising).
Would you hand your mom the keys to any unit you have for sale; let her drive off and NOT worry about it?
If that is NOT the case – then why are YOU selling it?
I didn’t say it had to be pretty, some of the ugliest cars I ever sold were all mechanically solid.
People come to you because you are supposed to be the expert (after all you buy and sell every day).
People want decent transportation that IS reasonably priced and DOES not break down 2 days/months after they buy it!
Remember for most folks their vehicle is the second largest investment they will ever make and for some it will be their largest purchase ever!
During the “Delivery” process did you have your customer “log in” and give you a good review (we live & die by stars now – under 4 stars leads to very little new business).
Some dealers use “Thank You” gifts such as a tank of gas, a gift card for dinner – OR the newest Home Run successful dealers are using is a “GPS Security Package” (Call me for details).
Relationships build any business – especially car sales!
How are your follow up skills – “Thank You” card mailed?
1 week follow up; you can catch any problems before they escalate AND ask for a referral.
TXDMV now allows us to “publicly” advertise Referral Fees!
(only to prior customers up to 3 yrs back – means you can work your old sales for business).
Keep in touch with past clients – you never know who they know and almost everyone knows someone looking for either a newer or better vehicle.
Be sure and get your banner up “I buy good used cars” – why pay at auction when the general public will bring it to you?
I can go on for at least another chapter about ways to grow your business.
So does your dealership need some “special attention”? – Call me.
In the past 13 years I have had the honor and privilege to help/consult with over 1700 dealers all across this great state.
Together we’ve put their businesses on the path of consistent
growth and profit.
Ok there you have my spin on the upcoming tax season.
DO with it as you will, however, don’t say I didn’t warn ya!