Today’s consumers, baby boomers and millennials alike, have far more sophisticated taste. They expect a lot more out of dealerships than some obnoxious inflatable tube men or painted letters that spell out “SALE” underneath the hoods of your cars.
You know the drill. It’s always a hassle, even if you walk right in and point immediately to one car and say, “I’m buying that.” There are all kinds of documentation, the discussion over add-ons and, in most cases, the financing. (Dealerships make a killing on financing.)
On Monday July 15th, Honda launched a social media campaign using the short-form video application Vine as a way to reach people expressing their frustrations with their current car. They noticed a lot of people in social media share their daily vehicle problems, which could open up an engaging opportunity to help promote Honda’s Summer Clearance Event.
3) If you get hired on, and are greeted by a sales manager (or “tower” manager) who makes you the Alec Baldwin scene from “Glengarry Glen Ross”, walk out of there immediately and never look back. If you find the sales manager to be a total hardass who raises his voice and manages through intimidation, then walk. You will be better off.
Prior to getting into car sales I had always been paid a salary or on an hourly basis. If I worked 40 hours a week, I was paid whatever the hourly wage was, times 40 hours. When I was salaried, I was getting a fixed amount each month, as long as I did my job. But after my first week in sales I realized I had just given up 50 hours of my life and hadn’t made one red cent. Because I hadn’t sold a car that week.
On film and TV shoots, there are rarely leftovers. In fact, good food stylists often compete with the caterers: Actors usually have to eat the food during their scenes, and the crew finishes off the scraps. While shooting a Chinese New Year scene for the show Fresh Off the Boat recently, actress Lucille Soong told Oliver, who was styling that episode, that she was going to skip lunch because she wanted to enjoy eating her food on camera. “That was pretty freaking flattering!” Oliver says.
This is the part of car buying people dread. Well, most people. There are some folks who absolutely love to negotiate. That’s how they get their kicks, affirm their manhood, and impress their girlfriends: by getting the best of a car salesman. However you feel about it, negotiation is a major part of car buying, so I won’t be able to cover it all at once. What I’d like to do first is offer an overview of a few good strategies car buyers can use to get a better deal, and next time talk about specific techniques that can make you a negotiating ninja.
The recent bump in overall sales (expected to be over 2% worldwide throughout the year, with Europe coming out of a recent slump) is attributable to consumers replacing old cars and the stabilization of gas prices. While that may continue, manufacturers are struggling to find why some brands and models resonate in the market place, while others don’t.
China’s car market rules are already designed to help develop the local industry. For one thing, foreign companies are only allowed to operate in China’s automobile market through joint venture (JV) partnerships, with foreign equity capped at 50%; these equity restrictions have been maintained by the most recent version of the Catalogue Guiding Foreign Investment in Industry, released in June 2017. In recent years, there have also been allegations from foreign players that Chinese regulators have employed legislation, such as China’s Anti-Monopoly Law—which saw aggressive enforcement against foreign automakers for alleged price violations in 2014—as a tool of industrial policy to chip away at foreign market share, in order to give local automakers room to grow.
Shrinking dealer margins do not translate into happy customers: Most customers (approximately four out of five) dislike the purchase process, and many still come away feeling cheated and mistreated. This strong antipathy is largely responsible for the rapid growth of Internet-based services that offer alternative means of gathering information on cars, soliciting price quotes and, in some cases, conducting transactions.
Kia also is exploring these types of integrations, in addition to using AI to engage directly with consumers on a chat module for their new hybrid SUV Niro through Facebook Messenger. Dubbed the “NiroBot,” this chat functionality lets consumers research the car’s features and functionality powered by AI.
Outbound marketing is interruptive and attempts to place information in front of a potential customer, even if they are not expecting or looking for it. Outbound tactics include traditional ads in newspapers, radio, and TV as well as broadly targeted digital ads.
The average car salesperson’s salary in 2012 was just under $45,000. And it doesn’t come easy. Many salespeople work purely on commission, meaning they only make money if they sell a car. “We’re not paid anything for standing there 12 hours a day and not selling,” says McDonald. “And if I work a whole week and don’t sell a car that week, I make nothing. When I do finally sell a car, I might make a minimum commission, which at my dealership is $125. When you divide that by 60 to 90 hours a week, it’s nothing.” Smith agrees, citing an average success rate of about 20 percent. “We lose in this industry a whole lot more than we win.”
Automobile salespeople who have been successful in their careers can eventually own their own dealership if they choose. Dealers with the financial means and necessary industry contacts may open a new dealership, or they can purchase an existing location and take over the operation.