There are many theories involving advertising. Do you advertise for the sake of branding or do you advertise a strong selling message? What do you do in an up market and what do you do when the market dries up?
Much of this depends upon the product you are selling and what your overall goals are for your business.
Many businesses today, due to the economic turndown, are dialing back on their advertsing in hopes of saving a profit. This rarely works. You should definitely be as prudent as possible, but don't stick your head in the sand.
Let's take a look at a particular segment, the automotive industry. If ever there was an industry in financial trouble today, it would be automotive. Automotive advertising is one of the more difficult sales to be made with the current economic climate. Many manufacturers are suffering greatly on the balance sheet. Chrysler and GM have been seeking bailout funds from the federal government in order to stay afloat.
With the large profit margins available on cars, the advertising dollars, if spent wisely, still warrant being spent.
Industries that rely on high volume and moderately expensive merchandise have the toughest descision. In tough times, it is sometimes very difficult to find enough buyers for moderately expensive merchandise. Jewelery stores, as an example, face these types of descisions on a weekly basis.
The safest industry would be that of the essentials. Grocery stores and pharmacies offer up necessities rather than the luxury items that require expendable income. Continual advertising in these industries requires less thought or leaps of faith.
The bottom line is this. In a market as choppy as this one, advertising still needs to be part of the overall business plan for any business that wants to stay ahead of the curve.
Monday, January 5, 2009
Sunday, December 7, 2008
A Woman’s Guide to Smart Car Buying
The latest market statistics indicate that women influence 85% of all the car buying decisions, make 74% of the maintenance decisions, and purchase 45% of all the automobiles sold each year.
Yet some slick salespeople (men and women alike) may still think a woman is an easy mark when she walks into a dealership alone. I remember being pressured into purchasing my first car by a pushy, rude saleswoman who wore me down and had me in tears. I left the dealership with a five year loan on a car I didn’t even like that well because I didn’t know what I was doing and was afraid to say no. But that was many years ago and I’ve learned a lot and made many good deals since then. Here is a list of things you can do to be a great shopper and get more bang for your buck when buying your dream car.
Shop for a car during the week. Everyone looks for cars on the weekend. But when there are many buyers at a dealership, the service isn’t as good and the price of the cars often stays high. But on Tuesday, the weekend seems awfully far away and gives the salespeople more incentive to work with you and provide individual attention. Keeping cars on the lot is not their intent, but they tend to be more willing to bargain when the shoppers are fewer. Car shopping during the week is a great way to enjoy the experience and save you money at the same time. Many dealerships such as Kings Mazda in Cincinnati Ohio or Richmond Ford in Richmond Virginia have implemented programs to train and educate their staff on how to better handle customers who have now become savvy on shopping for the deals.
Shop online and compare at your leisure. You should be used to shopping for bargains online. Going online is the easiest way to comparison shop. Once you have made some initial decisions, go take a test-drive. Then, you can either stay at the dealership and negotiate, or go home and close the deal on the Internet. Use sites like Edmunds.com's Dealer Locator to compare pricing.
Keep control of the situation. Some salespeople can be really good at wearing buyers down – don’t get tired and succumb to the pressure. Remember, it’s your money, and the word “no” packs a lot of power. If the salesperson is already asking you to make an offer while you’re test driving the vehicle, chances are he will continue to pressure you as the deal progresses. Nobody can sell you anything you don’t want if you say no. If you find yourself getting frustrated, upset, or feeling sorry for the salesperson (one guy even pulled out his wallet and showed me pictures of his 10 kids while telling me he was under this month’s quota), just leave. After all, it’s your hard earned money on the line – no one can spend it but you. Dealers such as Trussville Mazda in Birmingham Alabama know the value in easing customers into their decision by showing them the value in what they have to offer.
Be smart in the Finance and Insurance (F&I) office. The F&I guy tries to sweeten the deal for the dealership. In the F&I office, you will hear mention of all kinds of products and services, from rust proofing to fabric protection. These make a lot of money for the dealer and cost you significantly. Just because you are financing a lot of money already, it can be tempting to include little extras "for just $5.00 a month," be careful. When shopping, give some thought to how well the options you are considering will depreciate over time. Some features, such as rear DVD entertainment systems, leather interiors, upgraded engines, and navigation systems can actually add to a car’s resale value, so decide carefully before signing on the dotted line.
Do your research before you negotiate. Check out Edmunds.com's True Market Value® pricing before visiting the dealer. This service determines and reports what others are paying for new and used vehicles where you live. Knowing this information will make the negotiating experience great fun if you like to haggle. If you’re shy about haggling, the information will give you the confidence you need to quietly but firmly discuss what you want the price to be.
Extended warranties are negotiable and you can always buy one later. Many extended warranties don’t go into effect for at least three years, and your factory warranty on a new car often covers the majority of items during that time. Also, did you know that if an item that is not covered by the extended warranty (such as a fan belt) breaks and damages an item that IS covered, then often the repair is not covered at all? Extended warranties also often do not cover damage caused by rocks, street debris, etc. When you do purchase an extended warranty, be aware that there are many different types, and make sure to read all the plan provisions and deductibles before signing up.
Yet some slick salespeople (men and women alike) may still think a woman is an easy mark when she walks into a dealership alone. I remember being pressured into purchasing my first car by a pushy, rude saleswoman who wore me down and had me in tears. I left the dealership with a five year loan on a car I didn’t even like that well because I didn’t know what I was doing and was afraid to say no. But that was many years ago and I’ve learned a lot and made many good deals since then. Here is a list of things you can do to be a great shopper and get more bang for your buck when buying your dream car.
Shop for a car during the week. Everyone looks for cars on the weekend. But when there are many buyers at a dealership, the service isn’t as good and the price of the cars often stays high. But on Tuesday, the weekend seems awfully far away and gives the salespeople more incentive to work with you and provide individual attention. Keeping cars on the lot is not their intent, but they tend to be more willing to bargain when the shoppers are fewer. Car shopping during the week is a great way to enjoy the experience and save you money at the same time. Many dealerships such as Kings Mazda in Cincinnati Ohio or Richmond Ford in Richmond Virginia have implemented programs to train and educate their staff on how to better handle customers who have now become savvy on shopping for the deals.
Shop online and compare at your leisure. You should be used to shopping for bargains online. Going online is the easiest way to comparison shop. Once you have made some initial decisions, go take a test-drive. Then, you can either stay at the dealership and negotiate, or go home and close the deal on the Internet. Use sites like Edmunds.com's Dealer Locator to compare pricing.
Keep control of the situation. Some salespeople can be really good at wearing buyers down – don’t get tired and succumb to the pressure. Remember, it’s your money, and the word “no” packs a lot of power. If the salesperson is already asking you to make an offer while you’re test driving the vehicle, chances are he will continue to pressure you as the deal progresses. Nobody can sell you anything you don’t want if you say no. If you find yourself getting frustrated, upset, or feeling sorry for the salesperson (one guy even pulled out his wallet and showed me pictures of his 10 kids while telling me he was under this month’s quota), just leave. After all, it’s your hard earned money on the line – no one can spend it but you. Dealers such as Trussville Mazda in Birmingham Alabama know the value in easing customers into their decision by showing them the value in what they have to offer.
Be smart in the Finance and Insurance (F&I) office. The F&I guy tries to sweeten the deal for the dealership. In the F&I office, you will hear mention of all kinds of products and services, from rust proofing to fabric protection. These make a lot of money for the dealer and cost you significantly. Just because you are financing a lot of money already, it can be tempting to include little extras "for just $5.00 a month," be careful. When shopping, give some thought to how well the options you are considering will depreciate over time. Some features, such as rear DVD entertainment systems, leather interiors, upgraded engines, and navigation systems can actually add to a car’s resale value, so decide carefully before signing on the dotted line.
Do your research before you negotiate. Check out Edmunds.com's True Market Value® pricing before visiting the dealer. This service determines and reports what others are paying for new and used vehicles where you live. Knowing this information will make the negotiating experience great fun if you like to haggle. If you’re shy about haggling, the information will give you the confidence you need to quietly but firmly discuss what you want the price to be.
Extended warranties are negotiable and you can always buy one later. Many extended warranties don’t go into effect for at least three years, and your factory warranty on a new car often covers the majority of items during that time. Also, did you know that if an item that is not covered by the extended warranty (such as a fan belt) breaks and damages an item that IS covered, then often the repair is not covered at all? Extended warranties also often do not cover damage caused by rocks, street debris, etc. When you do purchase an extended warranty, be aware that there are many different types, and make sure to read all the plan provisions and deductibles before signing up.
Tuesday, September 30, 2008
Auto Dealers Taking It On The Chin
The economic crunch reaping havok with auto dealers nationwide. All points of the country are reporting much lower than average numbers year over year due to the times.
West Coast dealers are feeling the strain as much as East Coast Dealers. Des Moines Chevrolet Dealers are feeling it as much as Columbus Mazda Dealers.
There is no escaping the down turn.
Bill Heard Chevrolet, one of the nations largest Chevrolet dealers recently filed Chapter 11.
The $700B Bailout would be a step in the right direction to curb the pain of these dealers.
We'll see in a few more days if the bill gets passed, and if so, the effect it has on the industry.
West Coast dealers are feeling the strain as much as East Coast Dealers. Des Moines Chevrolet Dealers are feeling it as much as Columbus Mazda Dealers.
There is no escaping the down turn.
Bill Heard Chevrolet, one of the nations largest Chevrolet dealers recently filed Chapter 11.
The $700B Bailout would be a step in the right direction to curb the pain of these dealers.
We'll see in a few more days if the bill gets passed, and if so, the effect it has on the industry.
Sunday, July 13, 2008
Feeling The Heat!
New car dealerships around the country are not the only sector of the auto dealers feeling the heat of the economy. Used car dealers are getting whacked in the same manner.
Whether it is a new SUV or used, dealerships are watching the value of their inventories plummit. With no immediate end it sight, many dealerships are doing everything in their power to move these gas guzzling vehicles as quickly as possible and free their inventories from these hard to market pieces.
Certain regions in the country are getting hit harder than others. Cincinnati Used Car Dealers are in a highly saturated market, therefore, the public has many choices in a buyers market. This is not a good position to be in as a dealer.
Dealers are wanting to move these products and are paying top dollar for economy trades.
If there were ever a time for the consumer to secure an outstanding deal on a new or used SUV or truck, this is the time.
Whether it is a new SUV or used, dealerships are watching the value of their inventories plummit. With no immediate end it sight, many dealerships are doing everything in their power to move these gas guzzling vehicles as quickly as possible and free their inventories from these hard to market pieces.
Certain regions in the country are getting hit harder than others. Cincinnati Used Car Dealers are in a highly saturated market, therefore, the public has many choices in a buyers market. This is not a good position to be in as a dealer.
Dealers are wanting to move these products and are paying top dollar for economy trades.
If there were ever a time for the consumer to secure an outstanding deal on a new or used SUV or truck, this is the time.
Wednesday, July 2, 2008
Used Car Consolidation Strategy
Times are getting tougher and tougher in today automotive arena. Many dealers are finding it imperative to consolidate as much as possible. This obviously assists in bringing down expenses and overall overhead for dealerships.
Mutli-dealer groups, such as a major dealer group in Cincinnati known as Cincy Autos, has pulled many of it's resources and formed a powerful alliance with all of it's used car dealerships. They realize that Used Cars Cincinnati is a powerful keyword phrase and that Cincy Autos needs to be a force in the internet landscape when customers are searching for used cars in Cincinnati. Placing all of their used car inventories in one centralized location is a great benefit to their clients, as well as their overall business plan.
Consolidation will become more and more attractive to dealer group owners if the current economic environment fails to give back what it has taken.
Mutli-dealer groups, such as a major dealer group in Cincinnati known as Cincy Autos, has pulled many of it's resources and formed a powerful alliance with all of it's used car dealerships. They realize that Used Cars Cincinnati is a powerful keyword phrase and that Cincy Autos needs to be a force in the internet landscape when customers are searching for used cars in Cincinnati. Placing all of their used car inventories in one centralized location is a great benefit to their clients, as well as their overall business plan.
Consolidation will become more and more attractive to dealer group owners if the current economic environment fails to give back what it has taken.
Subscribe to:
Posts (Atom)