Archives For Automotive Market Share

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…

Industry Thought Leader Shares Guerrilla Marketing and Competitive Conquest Advertising Strategies – Automotive Digital Marketing Professional Community.
Ralph Paglia, Vice President of Digital at Tier10 Marketing, is sharing with automotive dealers and managers his insights on guerrilla marketing and competitive conquest advertising strategies

DETROIT September 7, 2011 Ralph Paglia, Vice President of Digital at Tier10 Marketing, is sharing with automotive dealers and managers his insights on guerrilla marketing and competitive conquest advertising strategies for the web. With today’s technologies and the sophisticated messaging and advertising systems available, there are more ways than ever before for aggressive dealers and managers to take their competition’s customers away from them.

What are some online tools and techniques that dealers can use to see exactly which keywords the competition is bidding on in Google?

How can dealers and managers use their dealer advertising association’s own web site to take customers from other dealers?

Paglia offers advice to dealers and managers on:

  • How to create a dealership Google Adwords account.
  • How to register competitive conquest domain names.
  • How to build guerrilla marketing microsites.
  • How to determine the weakest gazelle for conquest.

Ralph Paglia has 20-plus years of leadership in information technology enabled automotive marketing strategy and tactical implementation. Widely known as the outspoken director of Digital Marketing at ADP Dealer Services, Paglia is now vice president of Digital at Tier 10 Marketing.

Paglia is also the founder and editor-in-chief of America’s leading social network for automotive marketing and sales professionals. The Automotive Digital Marketing (ADM) Professional Community provides an online exchange for strategies, tactics, best practices, files, images, videos and professional networking among marketing professionals working in the car business.

Paglia has presented critically acclaimed workshops at each of the 10 previous Digital Dealer Conferences.

Ralph Paglia will be speaking to dealers and managers about guerrilla marketing and competitive conquest advertising strategies for the web at the 11th Digital Dealer® Conference & Exposition, October 5-7, at The Mirage, Las Vegas, Nevada.

Google +1: Now in PPC Ads and Affecting Search Engine Ranking – Automotive Digital Marketing Professional Community.

 

Google makes it clear that the +1 button does have an impact on your organic rankings, regardless of whether they come from a PPC ad or your organic listing.  As long as the URL of your PPC ad matches the URL of the organic listing, +1’s will show on both results.  The company also notes that while +1’s will affect your organic search ranking, they will not change Quality Score or ad ranking.  However, the most important component of Quality Score is Click-Through Rate (CTR) and I suspect that the primary reason that Google is testing this functionality in PPC ads is that they believe (as I do) that when a user sees a +1 from a trusted source, they will be more likely to click on the ad—increasing CTR, Quality Score, and Google’s ad revenue.

J. D. Power and Associates Sales Satisfaction Index (SSI) Study Reveals New Vehicle Purchase Decision Points

Study Shows: Jaguar Continues To Excel At Treating Their Customers Right And Audi Continues To Suck At It!

The manner in which customers are treated by the dealership is more important to overall new-vehicle buyer satisfaction than the actual transaction price, according to the J. D. Power and Associates 2010 U.S. Sales Satisfaction Index (SSI) StudySM released November 18, 2010.

The J. D. Power and Associates SSI study is a comprehensive analysis of the new-vehicle automotive purchase experience. Overall customer satisfaction is measured across four factors:
  • working out the deal (33%)
  • salesperson (25%)
  • delivery process (21%)
  • dealership facility (20%)
J. D. Power’s 2010 SSI study finds that more than one-half (52%) of new-vehicle buyers cite dealer treatment as a reason to purchase their new vehicle from a specific dealer. In comparison, 38 percent of buyers cite vehicle price or the deal offered as the reason for selecting their dealer.

The SSI study reveals one aspect of car buying satisfaction (or lack of) that is of particular interest; once the selling car dealership is selected, the ease of coming to an agreement on the final vehicle price has the single-greatest influence on buyer satisfaction, surpassing the importance of fairness of the actual price paid.

With the exception of selecting a vehicle, negotiating the deal is the aspect of the new-vehicle buying process that takes the longest time (53 minutes, on average).

“The process of working out the deal is the primary indicator of whether new-vehicle buyers have a satisfactory purchase experience,” said Jon Osborn, director of automotive research at J.D. Power and Associates. “While there are some buyers who enjoy the negotiation process, many find it to be the most unpleasant part of purchasing a new vehicle. It is particularly important for retailers to make this process as efficient and collaborative as possible, given its importance to overall satisfaction.”

For a third consecutive year, Jaguar ranks highest among luxury brands in satisfying buyers with the new-vehicle buying experience. Jaguar performs particularly well in the salesperson and working out the deal factors. Cadillac and Mercedes-Benz follow in the luxury brand segment rankings. These two brands also ranked second and third, respectively, in 2009.

Among luxury brands, Lincoln demonstrates the greatest improvement from 2009, moving from sixth rank position to fourth in 2010.


MINI ranks highest among mass market brands, performing particularly well in dealership facility, salesperson and delivery process.

Mercury and GMC, respectively, follow MINI in the mass market segment rankings. The mass market brands demonstrating the greatest improvement from 2009 are Hyundai (moving from 16th rank position to seventh in 2010) and Chrysler (moving from 15th rank position to eighth in 2010).

The study also finds that 60 percent of new-vehicle buyers visit more than one dealership during the shopping process. While many dealers are rejected for not having a vehicle that the buyers wanted to purchase, a significant number of buyers (18%) end showroom visits primarily due to poor customer treatment by the dealer’s salespeople. While some new-vehicle buyers complain about dealer sales staff applying too much sales pressure, “With new-vehicle retail sales remaining soft and manufacturers spending considerable amounts on incentives to get customers into showrooms, the value of prospects coming in to a dealership is extremely high,” said Osborn. “Dealers cannot afford to drive away customers through poor treatment. In addition, most of these rejecters go on to purchase a different brand of vehicle entirely, meaning that both the individual dealer and the automaker lose out.” The Internet continues to play an increasingly important role in the new-vehicle shopping process, with more than three-fourths of new-vehicle buyers (79%) using the Internet during the shopping process.

 

Twenty-four percent (24%) of all new vehicle buyers in 2010 submitted an online request for quote to a dealer, and were, on average, more satisfied with the negotiation process and the price paid. However, perhaps expecting a quicker sales process, these buyers are more likely to express dissatisfaction with the length of the sales process than are buyers who did not submit an online request.

“Dealers need to streamline the new-vehicle buying process for customers who do a lot of research online,” said Osborn. “These buyers tend to be affluent, well-informed and time-sensitive. They generally know the exact vehicle they want and how much they expect to pay for it. Despite often having little familiarity with the dealership they are buying from, they want to get in and out as quickly as possible. Dealers need to balance respect for the customer’s time while still providing what the customer needs.”
The J. D. Power and Associates 2010 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 25,244 new-vehicle buyers who purchased or leased their new vehicle in May 2010. The study was fielded between August and October 2010.

Jim Ziegler and Ralph Paglia Host Dealer Battle Plan Workshop in Atlantic City on July 6-8th

ATLANTA, June 2 — Top automotive industry trainer Jim Ziegler presents a dynamic workshop to help auto retailers meet online marketing challenges. Automobile retail sales are a fiercely competitive and erratic market. Ziegler’s plan is to give dealers an Internet Sales and Marketing Strategy to outperform the competition. This powerful event will be held at Bally’s Atlantic City, just minutes from the Philadelphia and New York City areas.

Change is constant. Nothing is the way it was, and will never be that way again. After working with thousands of automobile dealers over the years, Jim Ziegler needed to be sure his clients kept up with the new realities of changing technologies and the emerging influence of social media. So he assembled an all-star faculty for this dynamic event. All four presenters are world-class online retail practitioners. Their expertise and hands-on experience has shown they know what works and what doesn’t work in the online sales arena.

Workshop Instructors Ralph Paglia, Joe Webb and Tim Jennings have all been top-rated speakers at premier industry events and have managed both large and small InternetDepartments. When interviewed, Jim Ziegler smiled and said, “I’ve assembled a killer team for this event, combat tested veterans with more than four decades of in-the-trenches experience.”

Now, Ziegler and friends are delivering the real deal, content-rich sessions, hands-on “real-world stuff”, not theory. These tactics and processes are battle-tested on the front lines in dealerships all across the country.

Jim continued, “Dealerships can’t afford to miss a single opportunity to do business.” Having a dominant and effective presence on Facebook, Twitter, and other portals is critical to dealership marketing strategy. Ziegler and Paglia are masters of Social medium relationship sales and marketing. Students will take back an in-depth understanding of how to leverage online relationships for sales and profits as well as…

  --  The pathway to success; from email, to telephone, to the appointment
      to delivery
  --  How to Maximize Existing Profit Centers and Create New Ones
  --  How to use self-produced videos to capture customer trust and create
      credibility
  --  Focus sites, micro sites, and 12 other secrets to drive high-volume
      traffic
  --  Internet stealth marketing techniques with 'Ninja' Search Engine
      Optimization
  --  Marketing and Advertising with ultimate Video Search Engine
      Maximization
  --  How to turn your dealership into an Internet Sales Powerhouse
  --  Customer Relationship Management and CSI Engineering Projects for High
      Average Profitability, Top-Rated CSI Scores, Customer Retention and
      Referrals!
  --  YouTube, Facebook, LinkedIn and Twitter: How to profitize
      relationships with consumers through customer-friendly "Pull
      Marketing"

  About :

Ziegler SuperSystems is an automotive training and consulting organization based in the Atlanta, GA area. President Jim Ziegler is a member of the National Speakers Association and has been a keynote speaker at National and State Dealer conventions, and has trained over 75,000 Dealers, GSMs, Sales and F&I Managers. Course and Training information is at: http://zieglersupersystems.com/ Jim can be reached at: 800-726-0510

Jim Ziegler and Ralph Paglia Host Dealer Battle Plan Workshop in Atlantic City on July 6-8th.