![Page 1: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/1.jpg)
Automotive StrategiesControl Your Destiny - Think Automotive!
1Monday, February 4, 13
![Page 2: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/2.jpg)
Over 40 Years of Combined Technology & Automotive Experience
Your Instructors
‣ Brian Anderson• BS / MBA
• Internet Marketing Since 1995
• Local Marketing Since 1996
2
‣ Syd Michael• 17 + Years in Retail
Automotive
• Former GM
• Former Used Car Director
Monday, February 4, 13
![Page 3: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/3.jpg)
“The course within the course”
3
Facebook Mastermind
‣ If you haven’t already? Friend one of us on Facebook and we will add you to our Automotive Strategy Group
• https://facebook.com/atlantabrian or https://www.facebook.com/syd.michael
‣ Get Involved‣ Ask questions!‣ Share‣ #1 goal is to Educate, Train & give YOU the skills to CLOSE
more business!!Monday, February 4, 13
![Page 4: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/4.jpg)
4Monday, February 4, 13
![Page 5: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/5.jpg)
US Retail Automotive Landscape
5
‣ The US automobile dealer industry includes about 50,000 new and used vehicle dealers with combined annual revenue of about $700 billion.
‣ Major companies include AutoNation, CarMax, Penske Automotive Group, Asbury and Sonic Automotive.
‣ The industry is highly fragmented: the top 50 companies generate less than 15 percent of revenue.
Monday, February 4, 13
![Page 6: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/6.jpg)
Understand there are “two businesses” inside of each dealershipAutomotive Dealership Breakdown
6
Front-end (Sales/Internet) Back-end (Service/Body)
‣ General Manager
‣ General Sales Manger
‣ Finance Director
‣ Internet Sales Manager
‣ Sales Manager
‣ Sales Person
‣ Internet Sales Person
‣ 3% of Profits are Retained
‣
‣ General Manager
‣ Service Manager
‣ Body Shop Manager
‣ Service Writer
‣ Service Technician
‣ Body Shop Technician
‣ Porter
‣ 78% of Profits are Retained
‣Monday, February 4, 13
![Page 7: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/7.jpg)
To win - you must know what drives each person!General Manager - the “KING”
7
Front End Back End
‣ General Sales Manager
‣ Finance Director
‣ Sales Manager
‣ Internet Sales Manager
‣ Internet Sales
‣ Website Traffic
‣ Showroom Sales
‣ Finance Sales (The Other “Back End”
‣ Service Manager
‣ Controls all Service
‣ Controls all Clean-up
‣ Controls all Get-ready
‣ Collision Repair Manager
‣ Parts Manager
Monday, February 4, 13
![Page 8: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/8.jpg)
To win - you must know what drives each person!Dealership Approach & Direction
8
Internet Manager (Sales/Internet) General Sales Manager
‣ Internet Sales
‣ Website Traffic
‣ Only Paid on Front-End Store Profits
‣ Showroom Sales
‣ Internet Sales
‣ Finance Sales “also referred to as backend profit, not to be confused with ‘backend’ of store”
‣ Only Paid on Front-End Store Profits
Monday, February 4, 13
![Page 9: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/9.jpg)
Automotive Dealership Breakdown
9
Service Manager
‣ Controls all Service
‣ Controls all Body Shop
‣ Controls all Clean-up
‣ Controls all Get-ready
‣ Gets Paid On Back-End Profits Only
Monday, February 4, 13
![Page 10: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/10.jpg)
Dealer Organizational Chart
10Monday, February 4, 13
![Page 11: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/11.jpg)
To be effective selling to dealerships, you need to understand the acronyms & language
Important Car Business “Lingo”
11
‣ Wrench – Average Service visit $$$‣ UPs – Any customer / prospect that walks into the
dealership.‣ Front End – This refers to the Sales, Finance areas of the
dealership. Both new and used car sales.‣ Back End – This refers to the Service, Body Shop, Get
Ready departments.‣ PVR – Per Vehicle Retail, this refers to the actual front
end “profit” that the dealership makes on the sale of a Monday, February 4, 13
![Page 12: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/12.jpg)
‣ Walked – A customer that is given info or test drove and let go without a sale.
‣ B-back Someone let go without buying that returned‣ Demo -Test Drive or Loaner car to employee‣ Bullets – Perfect credit! Typically scores of 720 +‣ Bogue- Customer with less than avg credit‣ Roach- super bad credit
12Monday, February 4, 13
![Page 13: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/13.jpg)
Focus on Digital Marketing!2013 Retail Dealer Advertising Data
‣ 2013 Ad Spend Forecast - About half of surveyed dealers will not increase their ad spending next year.
‣ Emphasis on Digital! Even those who don’t up their ad budget in total will emphasize digital in the 2013 media mix. While about 2/3’s of dealers will spend more on digital, only 1/3 will increase their spending on traditional formats like TV and print. Dealers say as much as 35% of sales come from digital advertising.
‣ Dealers also like the easy-to-measure ROI offered by digital formats.
‣ [Source: LaReau, Jamie and Barkholz, David. Deals cautious about 2013 ad dollars. Autonews.com. 15 Oct. 2012.]13
Monday, February 4, 13
![Page 14: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/14.jpg)
from June 2012 survey data2011 Retail Automotive Ad Spend
14
10
10
15
20
20
25
Source: NADA Industry Analysis Division
Advertising % Spend by Major AreaNew Car Dealerships
OnlineNewspaperTelevisionRadioOtherDirect Mail
Monday, February 4, 13
![Page 15: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/15.jpg)
Source: NADA June 2012 dataInternet Advertising Facts
‣ In 2011, Advertising on the Internet rose sharply -- for all sizes of dealerships.
‣ Dealerships selling over 750 units spent 23.5 percent of their advertising budget on the internet – while dealers selling below 150 units spent 24.8 percent of their advertising budget on the internet.
‣ The most active Internet users were dealership selling between 400 and 749 units – with a share of 26.7 percent of the advertising budget.
15Monday, February 4, 13
![Page 16: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/16.jpg)
16
$628Average advertising spend per car sold in 2011 (NADA)
Monday, February 4, 13
![Page 17: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/17.jpg)
Small dealerships spend more per vehicle!Large vs. Small Dealership Advertising
‣ The smallest dealerships spent more to reach their customers than the largest dealerships overall – $788 per new vehicle sold, compared with $418 per unit at the largest dealerships.
17Monday, February 4, 13
![Page 18: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/18.jpg)
(Per Vehicle spend based on 2011 NADA survey data)Sample Monthly Advertising Budgets
18
Small ($788) Medium/Large ($628) Mega ($418)
100 cars sold
250 cars sold
600 cars sold
$78,800 * *
* $157,000 *
* * $250800
Monday, February 4, 13
![Page 19: Automotive Strategies - Amazon S3 · ‣ 78% of Profits are Retained ... dealership. Both new and used car sales. ... 100 cars sold 250 cars sold 600 cars sold $78,800 * *](https://reader036.vdocument.in/reader036/viewer/2022062600/5adf9ea37f8b9ad66b8d19bc/html5/thumbnails/19.jpg)
19Monday, February 4, 13