Why does a person elect to do business with a certain dealership?

Why does a person elect to do business with a certain dealership? Because they feel comfortable with the way the dealership does business and they want the product that the dealership has for sale.

Nowhere did I mention anything about who has the best ‘deals’.  Deals are made between two parties.  Broadcasting ‘deals’ is not the same as conducting ‘deals’.  A dealership can broadcast ‘deals’ in order to get a shopper’s attention, but the deal will ultimately be consummated between two parties; the buyer and the seller.

So, where does salesmanship enter into the equation?  Everywhere.  The customer needs to be sold on the entity they are to do business with…the dealership.  This means the customer not only likes and wants the product, they like and respect the party with whom they are entering into a deal.  Please see my blog on ‘What is a professional environment’ to fully understand what a customer is really buying.  Sure, you may make a few sales on selling the customer on ‘price’ alone, but rarely will this result in repeat business, referrals, high CSI, service and many other aspects of a successful transaction.

One only has to investigate the advertising budget of your competitors in the market.  Those that spend the most advertising and marketing dollars on a per car basis, yet have an erratic market share from month to month, are your prime examples of dealerships that cannot sell themselves in transactions.  They are always running in quicksand!

Once a dealership gets in the habit of running in quicksand, the inevitable occurs: erratic market share swings from one month to the next, a tendency towards running staffed sales events, an unhealthy turnover of sales staff and an ever-increasing ad dollar per car sold ratio.

Again, people do business with those they want to do business with.  The exceptions are not numerous enough to build an efficient, professional business around.


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
This entry was posted in Auto Dealer Solutions, Dealerite Blog, Sales Meeting Subjects and tagged , , , , , , , . Bookmark the permalink.

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