Anyone with an outgoing personality can be a car salesman, right? While it certainly helps to have a lively disposition when selling cars in person, merchandising your inventory online takes a whole different skill set.
Below are five features of an effective automotive marketing initiative.
We’re at a pivotal point in the automotive retail industry. With customers changing their buying habits and research methods, it’s time for self-evaluation. More and more dealerships are looking at their internal processes to find areas for growth and restructuring.
If you want to succeed, you need to identify the weaknesses in your inventory management process and work out a plan to correct them. The best way is to move through your inventory management procedures step by step, starting with stocking, moving to appraisal, and finishing with pricing.
Once you’ve uncovered inefficiencies in your processes, MAXDigital will be here to help you fix them.
FOR IMMEDIATE RELEASE
MAXDigital Strengthens Leadership Team, Focuses on “Stop the Drop” Campaign
Digital Retailing solutions help auto dealers maintain gross profits
CHICAGO — October 5, 2016 — MAXDigital, a premium end-to-end software provider for automotive dealers, announced today that Patrick McMullen, previously the SVP of Customer Success, will now be the company’s SVP of Strategy and Innovation. He will be traveling the country to deliver the company’s “Stop the Drop” message which helps dealers maintain gross profits and transform the way they deliver value during every sale.
Additionally, Rebecca Oistad has joined MAXDigital as the company’s VP of Marketing. In her new role, she will focus on building brand awareness, leading marketing communications, and driving demand for the company’s Digital Retailing and inventory management software solutions.
There’s little doubt the Internet has helped boost business across a wide range of industries. From advertising and customer engagement to online retail, the Internet can be credited as the best employee at companies everywhere.
One exception, however, has been at car dealerships. While the digital age has improved profit margins in many industries, car dealerships are finding that the Internet has actually been working against them in more ways than one. In fact, 2014 marked the third consecutive year that net pretax profit at new-car dealerships remained unchanged at 2.2%.
How are car dealership profit margins becoming stale while so many other industries are seeing substantial booms? In short, the Internet provides more information to car shoppers. And armed with this wealth of knowledge, consumers are now beating car salesman at their own game. Let’s examine how car dealerships can better protect their gross margin profitability in a more Internet-centric market.
When your used car inventory needs to be re-stocked, there are only so many places you can turn for quick, cost-efficient cars. Whether your dealership’s turnover is greater than projected or you’re having a hard time closing trade-ins, you need a reliable source of pre-owned inventory to meet your goals. If you’ve ever been in this situation, you’ve probably relied on a wholesale auction to fill in those empty spaces on your lot.
If you work at a car dealership in 2016, you’re in a good place. The most recent NADA Data Report says that “the past six years have been the longest period of new-vehicle sales growth since the 1920s,” and this year’s outlook shows the trend continuing.
Here are some of the milestones attached to that assessment:
- Total dealership revenue across all stores in the US reached a new high of $862 billion in 2015, a 6.9 percent increase over 2014.
- Franchised new-car dealerships sold more than 17.3 million new cars and light trucks.
- Average selling price of a new car/light truck: $33,419 (2.5 percent increase over 2014)
- Average selling price of cars from used vehicle inventory: $19,397 (2.9% increase over 2014)
Perhaps more exciting than growth for the auto industry is growth for local economies. Almost 150 new dealerships opened in the past year, and more than 1.1 million people were on a car dealership’s payroll. That’s a 4.3 percent increase over 2014. Dealerships employed 67 people on average last year.
These numbers are compelling, and they say good things about the health of the auto industry overall, but we know that dealers are always looking to do better. Where is the next big opportunity?
The idea of a “product expert” gets worked into a lot of our blogs and company literature. We like to frame it as the end goal to many of our services. If you take full advantage of the software we offer, you and your sales team can all become product experts. That’s what we want you to get out of a partnership with MAXDigital.
What we don’t want is for this notion to become just another buzzword, so let’s take a moment to talk about what a product expert does and how to become a product expert.
Today, savvy car shoppers do most of their research before they stop by your showroom. They narrow down a selection of cars they want, investigate trim levels and feature lists, and carefully consider option packages. Customers want to figure out the mental math behind a vehicle’s price tag before ever hopping in for a test drive.
Now more than ever, the importance of pricing awareness hits home not just with consumers but with dealerships.
As consumer behavior evolves, so too must that of salespeople. Executing precision in the pricing of a vehicle is becoming a critical step in closing the deal. There are three major reasons why car dealerships must be extra careful with the way they price their vehicles.
The car-buying process has moved online. Most customers are doing research on a combination of OEM, third party, and dealership websites. Once they visit a dealership, they spend time showrooming, comparing the cars on your lot to your competition across town.
If you want to adapt to the digital age, protect your margins, and stop the drop, you’ve come to the right place. MAXDigital is the only provider that can help you improve your sales process every step of the way. Our software and tools use real-time data to bolster your acquisition, pricing, merchandising, and sales procedures.
When you’re doing car appraisals for your pre-owned inventory, you likely have two goals:
- Acquire cars your customers want to buy
- Reinforce your bottom line
Further simplified, you’re looking for the right car at the right price. How can you guarantee that these goals are in line with one another? Those are two birds just waiting to be taken care of with a single stone, but you need the proper tools and strategy if you want to pull it off.
MAXDigital offers just the solution you need: an exclusive Cost-to-Market Appraisal tool that lets your dealership effectively leverage data.
Let’s take a closer look at what we mean by cost-to-market appraisal and why it’s vital to your success in the digital age of car-shopping.