All Blog Posts Tagged 'profitability' (47)

Automotive Industry Veteran Danny Benites Joins ZipDeal as National Sales Director

Fast-growing company taps industry innovator to head up its national expansion…

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Added by Tony Gomez on September 14, 2020 at 9:30am — No Comments

What A Good User Experience Can Do for You

With most of the country in quarantine, people are more reliant upon digital applications like Netflix and Amazon than ever before. Netflix reportedly had 16 million new subscribers in the first three months of 2020 due to the coronavirus. It’s no…

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Added by Steve Southin on July 21, 2020 at 9:57am — No Comments

Rides on Demand: How Vehicle Subscription Services Could Grow Your Profitability

Over the past few years, subscription services of all types have become increasingly popular with today’s consumers. Big names like Netflix and Amazon leverage them to offer optimized, often instantaneous access to their goods. Now, it’s the auto industry’s turn, with the rising popularity of vehicle subscriptions. These programs charge customers a monthly…

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Added by Jeff Giere on August 22, 2019 at 10:15am — No Comments

Shifting to a Razor and Razor Blade Business Model

In the last seven years, new vehicle gross margins have declined from four percent to two percent. If that pace continues, profit margins will be wiped out by 2025. It appears that the front-end grosses dealers enjoyed 10 or 15 years ago are never coming back.

 

F&I profits have made up for some of these lost profits, but this trend is not…

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Added by Scot Eisenfelder on July 12, 2019 at 9:26am — No Comments

Why Your Marketing Goals are All Wrong

Most people think about marketing as a way to generate immediate ROI. For every email campaign sent out, we measure its success with metrics like open rates, click-through rates (CTRs), number of sales or ROs, or even dollars generated.

 

While it's important to expect accountability from your marketing partner, sometimes it's easy to get lost…

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Added by Courtney Evans on June 7, 2019 at 9:44am — No Comments

No One Plans to Fail

As the old adage goes, no one plans to fail, they just fail to plan. This could not be more true when it comes to service marketing budgets in dealerships.

 

As new vehicle sales and gross margins decline, it's natural to look for ways to cut expenses. But I've never understood the logic behind cutting service marketing…

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Added by Scot Eisenfelder on May 24, 2019 at 10:38am — No Comments

Why Tesla Missed the Boat

If you haven't heard already, Tesla was in a world of hurt after reporting its Quarter 1 sales. In fact, the pain was so great that some could say it almost became the Titanic with a series of unfortunate events including sales reported lower than…

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Added by Michia Rohrssen on April 17, 2019 at 10:31am — No Comments

When Car Sales Slow Down, Change is Necessary

Just one month into 2019, and we've already received the dire prediction (from NADA) that sales are expected to drop to levels the auto industry hasn’t seen since 2014. …

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Added by Eric M. Schlesinger on February 13, 2019 at 9:45am — No Comments

How Failing to Train Service Advisors Affects Profitability

All too often, dealers are hesitant to make an investment in training new and Preowned salespeople because turnover in the sales department can be as high as 70 percent according to NADA. Service, however, has always been most dealership’s foundation for profitability. That’s where the phrase “service absorption” comes from.

 

For the most part,…

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Added by Andy Church on January 18, 2019 at 10:06am — No Comments

Who Need Sales Training? Bah Humbug.

Dealers are constantly inundated by trainers vying for their business. These trainers promise exponential success in sales and profits when they do. Many, however, are one-shot wonders in the sense that they come in, perform their training, get your staff pumped up and leave. What happens then? Chances are the lessons or knowledge that they may have learned…

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Added by Andy Church on December 13, 2018 at 10:08am — No Comments

Shifting Winds Reveal Service Revenue Opportunity

After an unprecedented period of sales volume growth, the prediction for a flat Seasonally Adjusted Annual Rate (SAAR) in the coming years has significant implications for dealerships. As competition for new vehicles heats up, front-end margins will continue to decline, forcing more dealers to focus on back end profitability.…

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Added by Scot Eisenfelder on November 2, 2018 at 10:41am — No Comments

Don’t Miss Revenue Opportunities!!

It is widely known that Service is the lifeblood of all dealerships and, in many cases, keeps dealerships financially in the black. With the inundation of service requests by consumers, largely due to the increasing amounts of recalls that we’ve seen in the last few years, service departments are finding it more difficult than ever to accommodate all of the customers that…

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Added by Andy Church on September 21, 2018 at 9:56am — No Comments

Did you THRIVE or SURVIVE in 2012?

By Leonard Buchholz

Every year about this time we begin to contemplate. What was our final score for 2012? How did we end up? Did we just SURVIVE or did we THRIVE?

For most of you, that reality was written months ago and on the 10th of January you’ll be reading the results you already suspect.

You may even be feeling some anticipation (much like a kid on Christmas morning).

For those of you who spent more time…

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Added by Leonard Buchholz on January 1, 2013 at 5:41pm — No Comments

"Things" do not a great Service Experience make.

Service is an "elbow to elbow" people business. As I (we) have traveled and observed so many Dealership Service Operations, there is still one overriding factor that every Customer Service Organization must understand and adhere to. This is people business.…

Customer services
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Added by Leonard Buchholz on November 15, 2012 at 9:04am — No Comments

Want to increase Service Sales by 30%?

Lost Sales and Declined Services Customers are in many Dealerships, the largest untapped source of additional revenue. And in most cases, the Sales has been lost because of a few words and not a few dollars.

Trained Advisors Make More Sales!

Advisors…

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Added by Leonard Buchholz on October 11, 2012 at 9:13am — No Comments

Techno me, Train me or Tank me...which is it?

It is an age old diametrically opposed argument. On one side, we have technology. On the other side, we have personnel.

I can't sell anything without a great Multipoint Inspection.

I can't sell anything without a professional Sales Process.

I must have both in order to be effective.

In recent years there has been a migration to technology because we…

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Added by Leonard Buchholz on September 12, 2012 at 10:30am — No Comments

3 Common Mistakes Salespeople Make

The 3 Most Common Mistakes Salespeople Make That Cost The Dealership Money!

The good news: They are all Preventable! Read below for the latest in how you can prevent Lost Sales!

#1-NO INTERVIEW!

An interview is the most important part of any sales…

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Added by Leonard Buchholz on July 25, 2012 at 2:18pm — No Comments

Why "Old School" Communication is the new "Class Dismissed"

Clearly there is a huge gap between what "we" (old school) managers and Leaders consider useful and proper communication, motivation and Leadership techniques and what the "new" generation responds to.

There is a choice to be made.

A. Keep doing what you've been doing and keep getting the same results while expecting a different outcome.

B. Do something…

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Added by Leonard Buchholz on July 16, 2012 at 10:44am — No Comments

4 Challenging Employees and What To Do About Them

Employees are the life of any organization. We spends hours recruiting, screening and interviewing them. After we have hired them, we spend more time training, coaching and monitoring them.

And when it's all said and done, we like to think that we have contributed to the Dealership's future and had a hand in weaving the very fabric of that Dealership.

And in every Dealership…

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Added by Leonard Buchholz on July 11, 2012 at 10:37am — 4 Comments

Grasshopper Pie

A traveling salesman had come to the end of a long day and was very hungry. He had not made many sales and was feeling a little frustrated with his results. He decided to stop and get something to eat and mull over his next step.

He stopped in town, parked on Main Street and looked around. He found two restaurants side by side.  Above each there was a sign.

The one on the left said “Food, more…

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Added by Leonard Buchholz on June 25, 2012 at 1:29pm — 8 Comments

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