When the 2000 Census was completed, we were advised that the Hispanic population had increased by 50% and that the Black or African American population had increased by 12.3% in just one decade. 

A scant 8 years later on August 14, 2008, the US Census bureau released new information concerning the changing demographics in our nation. 

To quote “The nation will be more racially and ethnically diverse, as well as much older, by midcentury.”

“Minorities, now roughly one-third of the US population, are expected to become the majority in 2042, with the nation projected to be 54 percent minority in 2050.  By 2023, minorities will comprise more than half of all children.”

I think we can all agree that “our country…. it is a changing…. and it is a changing rapidly”.  IS YOUR BUSINESS READY?  No longer can we treat our marketplace as one Giant General Market.  We need to be prepared to interface and serve all of our current and potential customers.   This means being ready not only for today and but for the future.

ANALYZE YOUR NEIGHBORHOOD:

Do you know who comprise your market area?   

It is essential to know the base of the area in which you do business. Read the rest of this entry »

Marketing to your existing customer base is critical in today’s shrinking auto industry where new customers are few and far between.  Unfortunately, the auto industry has a well deserved reputation earned over many years by fast talking car salespeople who relied on buy or die selling systems that ignored the importance of relationship based transparent negotiations to earn - and keep - a customer.  Experience has proven that if you make a friend you are more likely to make a sale.  More relevantly to this post, if you plan to market to your existing customer base it is critical that they are more than customers.  If you hope to earn their future business in sales and service they must be friends, not just previously sold leads.  After all, what are friends for!

Human nature drives every aspect of our lives - especially when buying a car - so it always amazes me when auto dealers implement a selling system or design an automotive advertising plan that doesn’t consider it.  This post will provide some insights from the customer’s perspective that must be addressed before you can presume to market to them as a long term customer vs. only a single sale. Read the rest of this entry »

The auto industry has always reflected the economy that supports it and most auto industry insiders agree that the recent consolidation of new car dealerships was necessary to maintain the equilibrium between supply and demand.  Unfortunately, the sensitive balancing act between new car supply and consumer demand was thrown off by the “success” of the Cash For Clunkers Program which artificially depleted new vehicle inventories.  Auto dealers had already cut back on new car orders to accommodate reduced sales volumes, and floor plan limits capped by shrinking working capital reserves limited the amount of new and used cars that auto dealers could keep in stock.  As a result, car dealers have not been able to timely replenish their sold inventory to maintain sales momentum and preserve profitability.  More urgently, dealers are scrambling for a way to stay ahead of fixed expenses that have already been cut to the bone.

Many automotive advertising agencies predicted that the Cash For Clunkers Program would produce an artificial wave of business with the associated “peak” in new vehicle sales during August followed by the “valley” in September that could continue through the balance of 2009.  Recent SAAR statistics project an adjusted annual sales rate of 8.8 million new vehicles in September proving that their worst fears have been realized.  Successful auto dealers focus on solutions rather than problems.  As a result, used cars have taken on a new importance with a number of creative techniques being applied to acquire used cars with a priority of selling used cars vs. new cars that are in short supply. Read the rest of this entry »

The statistics about the importance of women as a consumer are very familiar to all of us. Women account for 85% of all purchases which includes everything from homes to groceries and control TRILLIONS of dollars of wealth in this country. For those of us in the Automotive Industry, we know how vital the women consumers are to all of us; after all, they represent over 65% of our business. The challenge for all of us is how to make our place of business a comfortable place for women to patronize and purchase our products and services.

It goes without saying that the place where business is conducted must be inviting to both the women and men who come through our doors AND it must also reflect the marketplace in which we do business. Having said that, many of us do not know how or where to find the women we need to hire.

GET THE WORD OUT

Based on my experience here are some suggestions:

Create awareness that your place of business is hiring women and what career opportunities it has to offer. Read the rest of this entry »

A lot of bubbles burst over the past two years besides those on Wall Street, the Banking Industry and Real Estate.  Auto Leasing companies absorbed losses in off-lease vehicles due to overly optimistic residual values, (the guaranteed amount that they agreed to buy back the vehicles for at the end of the lease which was factored in when the lease was originated), when the auto industry shrank along with the economy.  The resulting losses in the wholesale market and lack of ability for auto dealers to retail out of the lease returns forced domestic manufacturers and independent leasing companies to either cancel their leasing programs completely or to reduce their residual values so low that the payments were more than conventional financing.  Basically, for most lenders and customers, leasing effectively died last year but it is staging a recovery of sorts that shows some life in the option that might interest payment buyers and automotive advertising agencies anxious to find ways to offer more for less - per month that is.

Chrysler, for example, has announced that they will be putting their toes back in the troubled leasing waters with some sub-vented leases, (subsidized residual values above expected resale at lease end and reduced money factors), that will offer competitive payments on some of their new models.  All of the details haven’t been released but the story has been announced in the mainstream media and you can expect factory marketing campaigns to start mid-September. Read the rest of this entry »

A shrinking economy has been the catalyst for reducing the amount of “brick and mortar” auto dealerships compounded by the consolidation brought about by the reorganization of General Motors and Chrysler.  The growth of the Internet Superhighway could not have been timed better, as 92% of the people buying a car are driving onto the Internet Superhighway in favor of the reduced number of car dealers on their local car row.

The car buying public will always take the path of least resistance and the Internet was already growing as the information resource of choice when selling a car or buying a car.  People selling new cars and/or used cars will naturally gravitate to where people looking to buy used cars and/or new cars are shopping, however the abrupt closing of thousands of auto dealerships across America has increased traffic to dealer websites at a faster rate than anticipated.  The result is an explosive need to improve the technology and the associated applications to enhance selling processes to facilitate buying cars and selling cars in a more efficient and cost effective manner. Read the rest of this entry »

Everyone knows that Certified Pre-Owned Vehicles are late model used cars or used trucks that have the same - or even better - warranties than new cars.  Car dealers are responsible to inspect certified cars to confirm that they have not been in an accident, have no body damage or paint work, are within established year and mileage limits set by the factory that is sponsoring the certified used cars program and that the dealer has reconditioned the vehicle to look and perform like a new car.  Special auto financing terms are offered on many certified vehicles and customers who want to buy used cars with all of the benefits of buying a new car have found that certified used cars represent the best of both worlds for the car buying public. 

Well, if you were one of the few that didn’t know about Certified Pre-Owned Cars you do now! Now that we are definitely all on the same page, let’s discuss why certified pre-owned cars are the best way to go for consumers who are buying cars and for auto dealers who are selling cars. Read the rest of this entry »

Buying cars and selling cars are two sides of the same coin.  If you are buying a car the odds are that you are also selling a car; unless you walked to the car dealership, you just got your driver license or you live in Manhattan where a parking space costs more than a small country!  The point is that the car buying public is usually also selling used cars either to car dealers as a trade-in or to another consumer who prefers buying used cars rather than new cars.   In all cases the answer to “How Much Is My Car Worth” can’t be found on most dealer websites - although a multi-franchise / multi-dealer website like everycarlisted.com will prove to be an excellent guide.  The fact is that the value of used cars and used trucks can only be determined by the market.  If you are a car dealer selling sports cars or Pre-Owned Certified Cars, or a consumer selling a car that has been a loyal member of the family, all you need is to do a little home work so you can negotiate using facts vs. emotions.

As a former auto dealer and author of a book, “How To Buy A Car” followed by another one, “How To Sell A Car,” I have developed a unique respect for both sides of the negotiation table.  Add the time that I have invested as the host of an automotive advertising resource / networking site - http://AdAgencyOnline.Net - to those experiences and I am confident that I can help both sides of the negotiation table wind up with the right deal.

To simplify matters I suggest that you refer to the following list of relevant observations before you jump in your car with your trade-in keys in hand, hit the World Wide Web with your credit card at the ready or presume to price your new car or used car for sale: Read the rest of this entry »

With the C.A.R.S. program in full-swing, or some would say “roller-coaster mode”, I thought I would touch on some opportunities for dealers who want to think outside of the box.

Cash for Clunkers is bringing big business to dealers nationwide who are selling new cars to people who might otherwise be buying used cars.  Some dealerships are having new car deals fall right into their laps without even trying to promote the program while others are using it as an “event” to help drive additional traffic for people considering a new car.  Even when the program was briefly suspended before more government funds were thrown into the rebate coffers, dealerships were receiving calls on whether or not the car buying public could still take advantage.  I think this program will be a much needed shot in the arm for automotive new car sales, but that dealers should invest more of their time promoting it opposed to letting nature take its course.
Read the rest of this entry »

Latest comment:

brianpasch: Joe, great post. A program like Cash for Clunkers really gives dealers the opportunity to be creative. I think we have another 30 days before the new $2 billion gets used up. Dealers should have a clear CFC marketing plan to get them through the Labor Day sales weekend. This program can be leveraged to increase local marketing lists and also used car sales. FYI - We posted the top 10 new car models sold under the NHTSA CARS program and the Toyota Corolla was in the #1 spot. See list: http://www.cashforclunkersfacts.com/bill/top-10-cash-for-clunkers-models

I attended and chaired a round-table on social media marketing to women car buyers at the annual M2W-Marketing to Women conference recently where the brightest and greatest minds on how to reach women spoke, networked and discussed the latest trends and strategies. It was invigorating and a nice change of pace for me to spend time mostly in the company of women who like me understand the “Power of the Purse”. I am very committed to speaking and training mostly men in the auto industry that women are not a diversity or niche market and how to improve results with women. Women are the majority of car, tire and service customers, yet at M2W it was the like singing to the choir, very few men attended the conference and ZERO men from the auto industry in attendance.

Read the rest of this entry »

Latest comment:

Philip Zelinger: Jody, As always, you answer questions that most auto dealers don't even know that they need to ask! After 31 years of a happy marriage - and counting - I thought that I knew all about the power that women have in a buying decision but until I read your post I didn't know why. You taught me that women approach a problem - like buying a car or selling a car - differently then men and that their thought processes are based on legitimate differences in the way they view life and the way that they are treated by salesmen that just don't understand women. Now, if only I can apply your teachings to understanding my wife I would be trully happy. Until then, I will settle for selling more cars to women by listening to them instead of trying to sell them a new car or a used car!