What do conversion ratios mean? Admin In the Media (0) The majority of dealerships I’ve met with have a fairly good measure on their conversion ratios. While measurement is one thing, analysis of those figures and truly understanding what they mean for your dealership is something we all need to master. Some very basic starting points for analysing conversion ratios are: [More]
The value of knowing your market Admin In the Media (0) Pick a vehicle on your dealership right now. Describe in your mind the person you expect to walk in and purchase that vehicle. Thinking about that description, where is that person most likely to be right now, tonight, this weekend? Are they young, old, have a family, sporty, male, female? Now try this same exercise with another vehicle on your dealership right now. Is the exact same person going to buy that vehicle? Chances are they aren’t – and that’s why there are huge benefits to identifying who the most likely person is to purchase any given vehicle on your dealership. [More]
Making informed buying decisions Admin In the Media (0) Buying vehicles to stock the dealership is a process that is paramount to the success of the business. Purchasing the right stock, at the right price, is a significant role. However, it is one that can be time-consuming and in some cases very difficult. Getting a constant supply of local stock is always challenging, but the opportunities to purchase what you get offered are way more convenient than having to place hundreds, or even thousands, of bids in the Japanese auction environment. Regardless of where you purchase your stock, it is essential to understand the best- and worst-performing vehicles for your business. Time under your belt buying vehicles, alongside gut instinct and intuition, certainly have merit, but this experience needs to be combined with some factual data. This is the only way to assess how vehicles really perform and can be all that is required to make those extra dollars and save you from costly losses. [More]
Customers - plan for success Admin In the Media (0) Every month dealerships have many customers that make contact, enquire on a vehicle, maybe even go for a test drive, but never end up purchasing. These are all opportunities that present themselves but are then lost. For some dealerships this may be 10 or 20 each month through to hundreds in larger dealer groups. Regardless of the number it is still lost sales. It’s frustrating when you’ve spent a significant amount of money to get that customer there and then nothing. This is about ensuring your dealership maximises the opportunity that has presented itself. Customer retention needs to begin right from that very first moment the customer made contact with your dealership. By operating with this mindset you naturally respect every opportunity that ultimately creates a customer, and one that you should retain for life. [More]
Working with out-of-town buyers Admin In the Media (0) There wouldn’t be many dealerships around that don’t appreciate extra sales they get every month from buyers out of their town or region. Before the internet, non-local customers were harder to come by, but they now form an important part of business models. However, despite how important these buyers are, in my experience dealers are still underutilising opportunities to increase sales in this area. A better job can be done by informing these customers of how easy it is to purchase vehicles from out of town and from the comfort of their homes. [More]