29 Apr What You’re Thinking Is Gross
Alan Ram discusses how to increase gross profit per retail unit sold.
Guess what dealers said they were most concerned about at the NADA convention? This is just a survey I happened to see the results to. It wasn’t declining volume or increased competition. It was declining gross profits.
So how do we increase gross so that we’re able to make a fair profit and not every deal is a mini? The answer is by working with customers that haven’t been shopping as a family adventure for the past 60 days. Let’s face it, if someone’s been out shopping for weeks, they’ve probably been low balled or lied to about what they can buy a car for. At that point it’s a struggle to even make any deal. So what’s the answer? The answer is dealing with people before they’ve shopped and in many cases been misled by the competition.
Who are those customers and where do we find them? The answer is your sold customer base. In my training, I talk about the last person that a customer talks to having the advantage as it pertains to unsold customer follow up. Let me expand on that for sold customer follow up. I don’t just want to be the last person a customer talks to, I want to be the first person as well. I want to get to my previous sold customers before they’re actually in the market and draw them into the market. That’s how you ensure yourself a fair profit. Be the first AND last person that your customers talk to. What does that take? It takes managing your sold customer base. It takes knowing their buying patterns. Knowing the buying patterns of their other family members. Information is power and it applies here as in other endeavors. Being proactive and actually working your customer base rather than just hoping to bump into your previously sold customers by the front door. That’s your answer. That’s how you increase your gross and make a fair profit for your efforts. Now you just need to bridge the gap between knowing and doing, want more? I talk about this and many other topics at great length on my ADAPT VT platform. Feel free to give us a call.