Today I got my Auto Count numbers from Clark County in Nevada. I have been keeping track of Hyundai market share in that area for a prospective client and I noticed something. In a 15 mile radius of the dealer 408 new Hyundai’s were sold in May and 375 were sold in June. Those two numbers represent a huge increase in volume over anything in the previous 2 1/2 years. Yet, Hyundai’s market share among new cars, although on the up-tick, didn’t surpass the high of 10.192% achieved in July of 2012. The difference between July of 2012 and May of 2014 is that the market was way down in July of 2012. 2139 new cars were sold in July of 2012 as compared with 4067 sold in May of 2014 in the Las Vegas market (15mi radius from dealer).
If you didn’t completely grasp the last paragraph, read it again and retain…one, two, three. There was a big turnabout in this particular market.
As a result of this, the dealer (the Hyundai dealer, now a client) didn’t really appreciate how good July of 2012 was. But, he was overly-impressed with May of 2014 even though everybody was selling more cars in the area and he was just keeping up with the trend, not surpassing it.
All too often I see dealer’s trying to pat themselves on the back for a month in which the market soared, even though the dealer, himself, was just barely keeping up with the trend.
Conversely, I have often witnessed a dealer saying they had a so-so month even though they were in a terrible market trend and the dealer, himself, actually gained market share…substantially.
‘Ok’, says the dealer, but it should only matter how much I take in regardless of what the market is doing. ‘It’s either more dollars in our pocket or less, right?’
Yes, it is…in a vacuum. How about the money left laying on the table in the form of lost market share? Or, how about understanding that you ‘reached into the other guy’s pocket’ on a down market? As in – ‘it should have been much worse than it was this month, except I stole a bunch of deals from my competition.’?
How can you expect to identify what processes, marketing and internal capacities worked and which ones didn’t? If you’re not measuring the results against a consistent formulation (i.e. market share), you really cannot measure anything with any amount of accuracy.
Live’n in a fool’s paradise.