One way to build net profit is to be the first dealership a buyer visits with a potential trade-in vehicle.
At this early stop, the consumer gets market information. You can sell real market value. Some customers will balk at the first offer. But a respectable percentage will accept the quote.
The results of your advertising are dictated by how you plan it. The results we see dealers get in trade-in business often stem from a specific, yet diverse marketing plan.
For example, if a dealership spends most of its ad budget on digital, the store misses needed scale. Conversely, sticking strictly with traditional media misses out on quality website traffic.
The answer is a combination of marketing. But there should be a consistent message to the consumer. What makes your dealership attractive to a buyer who needs to get a viable trade-in allowance?
What message will make that person go to your dealership? How can you get a first look at trade-ins before all the gross profit is shopped out?
The answer is to make your dealership a destination for trade-ins. Do that by:
- Running strong TV spots touting that fact.
- Digitally offering quick and easy trading quotes.
- Executing mobile marketing tactics with easy 1-click trade-in hotlines for consumers to call to get instant trading information directly from actual car buyers on your staff.
All of these build scale and make access easy. Another smart tactic is to promote certain models that you’re seeking to buy. That will get you high-demand used units and put the previous owners in new cars bought at the dealership.
Think about messages that are relevant in real-time. Stop marketing your dealership as a brand. You are not brand, you’re a retailer of brands in a service industry.
Customers can buy the same car at many different locations for pretty much the same price. What makes them choose you first? Often, it’s because they believe your store is the place to go for trade-in deals. They think that because your marketing has told them so.
Adam Armbruster is a senior partner in the business growth firm Eckstein, Summers, Armbruster & Co. He can be reached at 941-928-7192.