How to get your advertising costs down to $27 per vehicle

You have a location, a sign and brochures. How much a month does this cost you? $2500? If you sell 150 new and used vehicles per month now and spend $45,000 per month on advertising expenses, how many vehicles per month would you sell with just your location, sign and brochures? 90? OK, that does it. You now spend $2,500 per month on advertising and sell 90 cars, that’s $27 per vehicle.

But, you say, “I need to sell at least 150 vehicles per month for a number of reasons”. Does this mean that you are spending $42,500 per month for those additional 60 vehicles? Well, yes it does! By the way, that comes to $708 per vehicle for the 60 additional.

You need to look at efficiency and accountability in the way you go about selling those 60 vehicles. You need to find the most cost effective means of finding buyers at the correct time, when they are looking to buy, and get your dealership into the mix. You can’t create buyers out of thin air, you need to find the ones that exist and get to them at the right time.

This may not be news to many dealers, but it is a simplified and concrete way of looking at it. I’m telling you, there are methods that are accountable and cost effective to hunt those buyers down, you just have not experienced them yet.

And, by the way, the $708 per vehicle is not really all that high when you take most dealership’s advertising budget and see what it really produces. But, it can be a lot lower if intelligent methods are employed.


About dealerite/in association with AP Level 4

National affiliations of professionals who are engaged in changing the culture of the automobile retail business. Associated with AP Level 4 and Edifice Group. These companies are bringing sustainable marketing which has proven quantifiable improvements in a dealer's market share performance
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