Archives For automotive internet sales

Automotive Internet Sales 20 Group Composite – Chicago, October 23-25 2012 At The Downtown Hilton

I am proud to be one of the presenters selected to speak at the Automotive Internet Sales 20 Group in Chicago from October 23rd to the 25th and highly recommend this event for dealers and managers who are seeking to improve their Internet sales results. The way Sean Bradley has designed this event, participating dealers will be included in monthly conference calls to review participating dealer composite reporting ala “Dealer 20 Group” style, but specifically for handling online marketing and sales.

Eighth Element of the Automotive Consumer Journey – Automotive Digital Marketing Professional Community

Want to Sell More Cars? Then don’t forget Eighth Element in Modern Automotive Consumer Journey from Shopping to Buying!

When I read The Zero Moment of Truth (ZMOT) I think back to my early sales days – with more hair and less weight! – standing in the showroom next to a brand spanking new Dodge Aries. From that vantage point, I’d see consumers who would drive from dealership to dealership, gathering information and brochures while adding or removing cars from their consideration list. In-store sales processes back then were constructed around stopping the shopping, and if we failed to do so, our manager’s idea of constructive criticism and coaching was to call us “weak.” Yikes! What a memorable First Moment of Truth (FMOT) that must have been for the consumer!

We know from ZMOT that seven of the top eight automotive buying influences are online. The “eighth element” is your in-store processes. Sadly though, as I’ve witnessed in too many dealerships, a winning ZMOT strategy combined with antiquated in-store processes equals a recipe for disaster. Digital processes are improving, but what about the 89% of consumers whose First Moment of Truth takes place over the phone or by walk-in? For many dealerships, the eighth element, phone and in-store processes, is as antiquated as a K-car.

 

Tips and Tricks for Creating a Modern In-Store Process

  • Manager Meet and Greet: The Manager T.O. worked great when cars still had retractable seat belts and cassette players, but now consumers don’t want to be turned over to a manager after they have made a decision to leave…or introduced to some mysterious person when a deal can’t be agreed upon. Dealership managers should get out from behind their desks and walk the showroom meeting and greeting customers at the beginning of the sales process, not at the end. This simple change in your sales process creates a friendlier environment for the consumer and injects a feeling of transparency into the sales process. If this is not a standard practice in your dealership today…it should be!

 

  • Customer Qualifying: Let’s start with some good news: if they are physically in your dealership, you’ve already won the Zero Moment of Truth! But you still need to win the First Moment of Truth, and expanding your qualifying process can easily help you deliver a victory for your dealership. Embrace the fact that your consumers will likely have received some serious education by the time they set foot in your showroom. Let your customer know that if they have questions or need access to additional information while they are shopping, that you have a computer or iPad available where they can privately get online. This simple statement provides transparency in the shopping process and helps you remain in control of the sales process. It’s better for the consumer to do additional research in your dealership than leaving to do it at home.

 

  • Negotiating: Consumers want transparency as well as an expedited sales process. They don’t want to spend five hours in your dealership buying a car. As Sales Managers, you control the deal flow. So when it comes to negotiating price, don’t implement a sales process that requires your salespeople to run back and forth negotiating numbers with the desk. Your dealership sales process should allow the sales manager’s first pencil to be directly with the consumer. Remember, your consumers are educated and have the same information in front of them as do you. So get out from behind the desk and go in and close the deal! If your sales process includes the Manager Meet and Greet as mentioned above, you’ll be well on your way to delivering a positive First Moment of Truth.

Do we still want to “stop the shopping?” Of course! But today, by the time the consumer has entered the dealership, they have stopped shopping. They have narrowed their consideration list to a small handful of vehicles and dealerships. With seven of the top eight buying influences occurring online, it’s up to dealers to deliver that critical eighth element that is going to take shoppers from the floor to over-the-curb.

 

Written by Steve Hanson, Cobalt Performance Improvement Consultant

 

THE CAR BUYING JOURNEY

richard_bustillo_honda_collision_center.wmv Watch on Posterous

Richard Bustillo is the General Manager of Rick Case Honda in Davie, Florida and in the Automotive Management Minute video he explains how he has become far more effective at marketing his dealership’s body shop.

Google Next Update Will Make Current SEO Practices Obsolete!
In a few days time, Google will unleash the biggest shake up of search engine rankings in it’s history.

It’s so big, Mat Cutt’s made the unusual decision to pre-announce it at a conference a couple of weeks ago.

Matt Cutts, the head of search spam at Google, said “you don’t want the next Penguin update.” He warned that the Google “engineers have been working hard,” on this update. He even added the next few updates will be “jarring and jolting” for webmasters and SEOs.

If you’ve been following me, this can’t come as a surprise…

Winter Is Coming

It will be hard, for you, for your clients, for your rankings.

BUT

In carnage comes great opportunity.

One of the biggest opportunities will be in helping local businesses through this shake up. Google isn’t unleashing hell on the indexes for fun. They are hitting the reset switch to take advantage of context based searches. They are doing it to stay relevent.

Delivering search results the user needs BEFORE they even knew they needed it…. [1]

Caro McCourtie and I having been training people to work with local businesses for years now. On Thursday evening (US East Coast Time), Caro and I will take you through whats going on.

It sure won’t be link building!!

To register for the webinar click here…

Phoenix From The Flames – How you can take advantage of the imminent Goomageden

Sent from my iPad

Ralph Paglia
http://RalphPaglia.com
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http://Twitter.com/RalphPaglia

Dealer Marketing Magazine and Automotive Digital Marketing Form Partnership

“We are proud to be associated with the ADM community,” says Brett Stevenson, Publisher of Dealer Marketing Magazine. “There are a number of social networks out there for auto dealers, but this is the Granddaddy. They have a large influence in the auto industry and have always helped dealers learn from one another.”

Source:  Automotive Digital Marketing Professional Community.

Death of a Salesman, has the day arrived?

The furniture and carpet retail industry’s pay commission only, BUT their salespeople get a percentage of the GROSS SALES REVENUE, in many cases 6% to 8% with an average being about 7%.  The key there is that the salesperson’s percentage is based on transaction amount and NOT on gross profit.  When there is a slow moving line of furniture or carpeting, it is not uncommon to see a retailer put a 10% commission on that product line to get the salespeople fired up.

There is nothing FUNDAMENTALLY wrong with automotive sales professionals being paid on a commission based system, but when the pay structure was established in 1972 and based on a gross profit margin that was, as a percent of the transaction price, 2 to 3 times what it is today, then there must be adjustments made in order to ensure that a sales professional position in the car business is still a high paid job.

When I started selling cars on Friday, February 13, 1981 my commission plan paid a similar commission as a percent of gross profit margin as many dealerships pay today.  This is ludicrous and counter intuitive! My first dealership felt compelled to put a CAP on sales commissions because we were selling diesel VW’s for $2,000 to $5,000 over window sticker… My first year of selling cars, a 10 month years in 1981 I made over $84,000 as a car salesman.  Let’s put that into perspective in today’s 2012 dollars… Can a first year car salesperson make $175,000 today?  And, don’t say I was anything special, because there were at least 4 or 5 people in my dealership that outsold me.

If you give an entire class of professionals a pay cut ever year for over 30 years, what do you suppose happens to the quality of who we have available to hire and the turnover in that professional category?  Yes… It is as obvious as it seems and a lot less complicated than people want to admit. Until the entire automotive distribution system in the USA allows for sales professionals to earn a living commensurate with the skills required for them to do a great job, we will be relegated to lousy salesperson performance as an industry average.  This is not just a dealer responsibility… Every time an OEM strips gross margin out of the MSRP on the window of a new car, and puts that money into dealer cash that is paid separately, they are in fact reducing every sales professionals income from selling those cars.  I personally believe that there needs to be more gross profit margin in the MSRP shown on the window of most new vehicles sold in this country.  And based on what most consumers seem to believe we have for profit margins in those Monroney sticker prices, they agree as well!

Source: Automotive Digital Marketing Professional Community.

Introducing Dealers United – Competitive Advantage for Privately Held Car Dealers – Automotive Digital Marketing Professional Community.

Dealers United

Dealers United Procurement and Cost Control Program

 

COMPETITIVE ADVANTAGE VIA COST CONTROLS – Dealers United enables
independent dealers and small dealer groups to generate big savings from
vendors by leveraging multiple dealerships’ purchasing power. Today,
independent dealerships and small dealer groups are unable to demand the
same level of discounts from their vendors as big dealer groups are
capable of achieving. Dealers United levels this playing field and
allows independent dealerships to compete with the purchasing power of
large dealer groups. Use the link provided to learn more about
enrolling your dealership in Dealers United…