CallSource^® Aim Higher

Save Your Money

by Tim Lantz, July 14 2009

"I can't believe I'm saying this, but as your advertising agency, I think you should just save your money...at least until we get the fundamentals taken care of first." Oh yeah...the fundamentals. Ugh.

I seem to be having this conversation more and more, probably because, given the current state of our industry, dealers are looking for the latest magic bullet to spark sales. "What's working, Tim?" "What are your dealers having success with?" My answer is simple: The most successful dealers are sticking to the fundamentals of car sales; they are managing their inventory well, hiring well and constantly training their people, and they're advertising core product on a consistent basis with a consistent message.

Nothing fancy - just a very simple formula - but one that can be hard to follow and stick to. Oftentimes, it's so much easier to throw money at the problem by getting your ad agency to design some colorful ad or a slick TV or radio spot. Or, as we're seeing more and more these days, pumping money into Search Engine Marketing or utilizing the "net." But ultimately, when the traffic does come, you've got to be good at the fundamentals in order to close a deal.

Consider your inventory.
Is it the right kind? Is your new car inventory stocked with top sellers? Do you have an ample supply of the cars that move the fastest? What about some price leaders, are you able to get those? With all the sophisticated software packages available these days, there is no reason to "wing it" or "go with your gut" when managing your inventory. You have the resources and ability to find out everything you need to about one's new and used inventory mix: best selling models, most appropriate pricing per model per market, average turn. Buy the software. Use it.

Is your inventory clean and displayed properly? Is it lined up in a way that is logical and easily accessible to the customer? Does it  "step them up" in options and price? Are the advertised vehicles prominently displayed either on the showroom floor or right outside so that customers and salespeople alike can easily access them?

I know they sound pretty obvious, but some dealers are still not following these simple steps. Are you? I am constantly amazed at the number of dealer lots I go on where there is no rhyme or reason to the way the inventory is laid out. New and used mixed together or not clearly defined; brands mixed together; the owner's sports car/motorcycle/boat displayed on the showroom floor.

Consider your salespeople.
I know finding good people is hard. In fact, it's a never ending process. Are you constantly looking for the best of the best or simply someone with a pulse? Do you have enough for your sales goals? When you hire a salesperson, are you continually training them? You've spent all this time, energy and money on them; you can't afford to have them fail due to neglect. Are they neat, clean, and dressed appropriately? Do you allow them to smoke in front of the building? Your people are your biggest expense. Require their greatest effort. They are the faces of the organization. Make them great.

Have you looked at your showroom lately?

"Uh...what about my showroom?" you ask. Well, is it clean, bright and well organized? We all know that car buying is emotional. What kind of emotion does your showroom stir up? Is it a happy place? Peppy? Fun? Or is it a morgue? What about sales collateral and point of purchase? Is it nicely displayed and relevant or faded, torn and left over from the sale two months ago? All of these factors make a difference. It is your money. You spend all that cash to bring people to your home. Make sure there aren't piles of laundry on the sofa or dirty dishes in the sink.

Now, we can talk advertising.
Don't do it. That's right, don't advertise unless you've got a pretty good handle on all of the above. With the business being what it is and salespeople being who they are, I realize your task will never be completely done, but we should all strive for constant improvement, Kaizan and all that. But advertising, any advertising, is doomed to fail if the above criteria aren't met. I'm not being altruistic, believe me-I want your money! I just want to hedge a bet that my divinely inspired campaign will produce the results promised because all of the other basics are taken care of.

When we do get around to advertising, let's make sure we do it consistently. We need a consistent message on a consistent medium. Our core message must exist across everything we do. The best financial planners advocate choosing quality, proven mutual funds and dollar cost averaging for their clients-nothing too sexy, no fads, no jumping in and out or timing the market-in good times or bad. This is exactly what you need to do with your advertising in order to achieve long-term success.

Call me to continue the conversation, tell me I'm full of it...or just to wrap about the biz.

Tim Lantz is a 20 year veteran of the car business having served in both sales and advertising capacities. He currently is an account director with Intermark Automotive in Birmingham, AL, and can be reached at 205-776-2276 or at   tim.lantz@intermarkgroup.com.