Did The "old School" Sales And The Marketing Tips Have Become Extinct?

Did The "old School" Sales And The Marketing Tips Have Become Extinct?

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Somewhat about 10 years later the automobile business has reached a fork in the road. The industry was challenged by a newly (or soon to be) informed and empowered client base. From that point forward dealers have been challenged with a choice: hang on to those old school sales and marketing strategies or join the ranks of the next generation dealers who rely on a "more sophisticated" approach a kinder, gentler car business.

This kind of option is still facing thousands of dealers whove yet to "choose a side" but time and distance have now created the opportunity to look back and ask, "Are those old school techniques really out of date?"

In an effort to simplify (but at the risk of generalizing), now lets check out some of the elements of the "old school" method:

Higher-pressure promoting environment
Dealer-controlled selling process
Less price/margin clearness
Emphasis on front-end revenues
More reliant on traditional advertising like print, radio, television or direct mail
"Hook" based marketing messages
Customers vehicle choice inspired by profit potential and bank advance
Bigger push for substantial down payment
Pre-qualification moved toward front of sales process
Sales are designed in person, on the spot, on the lot

Now lets take a glance at the "more sophisticated" new way of doing things:
Low-pressure selling environment
Customer restricted buying process
Completely clear pricing and profit margin
Emphasis on achieving money in the long term and willingness to forgo immediate profit
Focus on quick turn, high volume
Less reliant on traditional advertising
Price-based promoting messages
Customers car choice uninfluenced
Little or no pre-qualification
Sales procedure exists in large part in email, on the web, on the phone

So which one is better? Which do you believe we think is better?

Of course, theres no correct answer. At last dealers should always decide to do the business in the same way that which they feel most comfortable... and find to be the most effective way.

However, we strongly recommend against flatly rejecting either "old school" or "new school" techniques and instead cheer dealers to become objective thinkers and operators who are keen to take the best and most effective elements of any line of attack and use it in their commerce.

The real risk is in the vast assumptions that have been developed about the "new economy" and the "new consumer." There is a sense in the business that all of the customers are very well informed customers who will demand very less price and reject any form of the pressure. These assumptions are simply not true.

In reality, To be frank customers still have the similar lizard mindsets which they had a decade ago. And as clever as it would be if the Internet could speed up the pace of evolution, it cant and it hasnt. Individuals still have desires, which are furnished by owning a nicer, newer car. They still have anxieties or doubts, which avoid them from entering the buyers circle. An effective dealers job is to leverage the wishes and overcome the doubts.

The idea that consumers in 2010 are data-driven drones who make only purely logical decisions is false and will harm this industry. Youll be very careful to reject that notion and to prevent it from harming your business.

Tactics vs. Intent

Nowadays the generalizations are made with respect to the dealers who utilize some tactics. For example, weve heard dealers who consider themselves part of this newer generation accuse other dealers who continue to make extremely high front-end profit using "old school" tactics of being somehow unethical.

The broad philosophical question: Is making a profit unethical?

Thats for you to decide. But for the purpose of this article, let us assume that we all agree to the point that making a profit is real ethical. This is, after all, the car business not the car basis.

In fact, dealers gives a valuable service to the public by finding, sourcing and arranging for the transportation of vehicles to their location, inventorying those vehicles so that clients can browse multiple options, helping customers find and arrange for financing of their selected vehicle, providing the opportunity to service the vehicles, etc.

For that service dealers deserve a profit (As an aside, nobody questions or criticizes grocery stores, or clothing stores, or electronics stores for making a profit. Why should making a profit at a car store be any different?) How much profit is the right profit? As much profit as the market will bear, one customer at a time.

That aside, the query becomes: Is the use of "old school" tactics wrong?

We submit that the tricks used are far less vital than the intent of the dealer utilizing them. A dealer whose mission is to help as many people as possible satisfy their emotional desires by helping them own a nicer, newer car is not a bad person. Can we agree on that?

Then it should follow that whatever tactics are used to make the sale, as long as the tactics are not dishonest, regardless of "old school" or "new school", are good and reasonable. And a dealer should find and execute any and all tactics that help secures purchase that they feel comfortable with.

"Old School" Plus "New School"

Makes the Most "Profitable School" In The Industry

In our view, "old school" tactics are wrongly demonized and cast beside by an increasingly contemporary-minded industry simply because theyre old.

Additionally, "new school" tricks are refused by the dealers who are not willing to embrace the new technology, simply because theyre new.

But such polarity doesnt need to exist. This isnt Washington! What good do partisan-style, ideological, intra-industry politics do for a dealer? None. The reality is the best approach is a hybrid approach.

"New School" Dealers should realize:

The Internet has not reinvented the car business. It is a tool to be used and leveraged, not a savior.

Theres much more to Internet marketing than just listing vehicles and prices (in fact, that may be the worst thing you can do). People are now just looking for the information online leaving beyond just prices.

Traditional advertising still works and limiting your marketing to the Internet is a dangerous proposition. Youre simply leaving money on the table if you ignore traditional media.

While more informed, consumers are as emotionally driven as ever.

Low pricing is not the only, or best option (its simply the convenient option, chosen by lazy and unimaginative marketersthats a topic for a different article).

Making a profit is not wrong even in 2010.

While earning a profit long term is important, your business will grow faster and better if you can also turn a profit immediately. The larger profit you make on the front, the more you can make investments to acquire new customers. The more wealth you invest to acquire the new clients, the better you grow.

Dealers provide extremely valuable service, and should strive to provide that service to as many people as possible.

It is entirely possible to sell a decent volume and make a decent profit. High margin does not directly equate to lower volume.

Applying stress for a customer to make a buying decision is not wrong or evil. In fact many customers are anxious for someone to help them finalize their decision, and a little nudge from the individuals is all they need.

As of this texting, people still buy cars in person. We dont see customers entering in their credit card online and having their car delivered by UPS. Until that becomes the norm, the car business is still a brick and mortar business.

"Old School" Dealers should realize:

Youre being talked about on the Internet whether you like it or not. You can join and direct the conversation or you can be a victim of the conversation that occurs without you.

More and more customers everyday are turning to the Internet for information. If youre not there, you will be hidden to those people.

Making money in a short span of time is important. But long-term profit and the life span value of a customer are at least equally as important.

Because of the proliferation of information, many buyers will know more about your vehicles than you do. Now you need to go beyond features, and start talking about profits and helping buyers realize how this car will make them feel good.

In the final analysis, the most successful and stable dealers are those who provide high value in exchange for high profit and utilize all the tools and techniques available to them, regardless of age, to achieve that. Like the dealer who has a video blog AND a radio campaign, or uses a trade hook AND an opt-in form. Old and new are not mutually exclusive and should coexist for best results at your dealership.

About the Author:
Jimmy Vee & Travis Miller are the authors of Gravitational Marketing: The Science of Attracting Customers and founders of the Rich Dealers Institute. They help dealers double their profits in as little as 118 days. Receive a free copy of their special report & video presentation, The New Rules of Automotive Marketing by visiting http://www.RichDealers.com



Article Originally Published On: http://www.articlesnatch.com


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