page contents Automotive Thought Leader: Ralph Paglia: How Many Opportunities To Grow Profits and Redcue Expenses Do Car Dealers and General Managers Miss Each Day? My title page contents

Saturday, March 8, 2008

How Many Opportunities To Grow Profits and Redcue Expenses Do Car Dealers and General Managers Miss Each Day?

Monday Morning 9 AM
Lot attendant smashes car that was scheduled for delivery at 4 pm that day.
Net cost $2,584.00

Monday Morning 10 AM
Manager’s meeting. Walk the trades from Saturday. Used car manager makes appraisal mistake valuing the wrong model.
Net cost $2,300.

Monday Afternoon 1 PM
Sales person promises a customer lifetime oil changes and tire rotation to deliver a car. Salesperson is no longer there. Customer has it in writing!
Net Cost $1578.00

Total losses for the day as of 1:20PM = $ 6462.00

Monday Afternoon 1:25 PM
Digital Marketing supplier walks through your front door, talks to you about a program that delivers more traffic to the dealership's showroom, web sites and generates more incoming sales calls and provides the dealership with more vehicle sales opportunities. Just like every other vendor claims, so you tell him NO thanks.

Monday Afternoon 1:45 PM
That same sales person for the sane Digital Marketing supplier that you threw out at 1:25PM walks to your neighboring dealership and sells that digital marketing program. The GM at your competitor invets $25,000 into an online advertising program that will generate 5,000,000 impressions, 15,000 visitors to the dealership's web sites, 150 email leads, 450 phone calls and 750 showroom visitors... Over the next 30 days, your competitor delivers and additional 50 cars @ $2,500 Gross Profit PVR, generating an additional $125,000 in Sales Department income. But wait, it gets better yet for your competitor, because he cut $35,000 from his general advertising budget when he signed up for $25,000 in online digital advertising... So, a net savings of $10,000 went to the Sales Department's bottom line before his month even started!

This is a PRICELESS scenario!

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