Those who are going to buy cars are going to buy cars. The small fraction of people who can be convinced to buy a car when they are not intending to buy a car is not something that you can run a business on. Sure, you might be able to motivate people who have been thinking about buying cars to buy one a bit sooner than they were expecting or to buy the kind of car you sell…or buy it from you, but you are not going to create any significant number of buyers out of whole cloth.
With that said, how do you increase your market share? Capacity and Opportunities.
I’ve talked about these two elements before, but they are the foundation of a retailer’s ability to increase or decrease their numbers.
Your ‘capacity’ has to do with your:
- Sales force
- efficiencies of processes within the organization
Your ‘opportunities’ consist of:
- Walk ins
- Phone ups
- Web and Email inquiries
- Marketing Footprint
Let’s talk about ‘Marketing Footprint’. Where and how often a consumer in your market may come across your dealership while in their buying cycle is how your dealership is ‘put in the mix’ of dealerships that may get this customer’s business. Acquiring new customers is reliant on this concept. The dealer’s location and signage are part of this equation, but so are direct marketing, billboards and other forms of advertising. The trick here is to get in front of the ‘in the cycle buyer’ in the most cost efficient manner. Obviously, cost efficiency is a key here or you will be spending far too much money in acquiring the business which would make it virtually impossible to have any consistency in your marketing efforts. Without consistency, you will forever yo-you up and down the market share race and put both your ‘capacity’ and your ability to create ‘opportunities’ in dire jeopardy.
When you jeopardize your ability to sustain your capacity and the creation of ‘opportunities’ you will forever be spinning your wheels (pun intended) and may not be around to profit from what can be an extremely profitable business.