Some Sales Ideas to Help Car Dealers in a Down Market

Although the government's "Cash for Clunkers" program provided auto dealers with a badly needed shot in the arm as many slow moving or non-moving vehicles were sold off their lots, the medicine in that particular syringe seems to have run out for most dealerships.

Sales have been slow for most dealers since the end of the government-backed program. "Clunkers" did move million extra vehicles off dealer lots last summer and 800,000 clunkers were removed from the roads.

Ford and Chevrolet have been fortunate exceptions to the slow market because their sales have been steady -- indeed Ford has just declared its first yearly operating profit in five years -- as both automakers have exciting vehicles they can tout and which are bringing customers into their showrooms. Ford has its radically restyled Fusion Hybrid, that won as North American Car of the Year, and its new Transit Van, winner of North American Truck of the Year.

Chevy has an exciting lineup that includes the restyled Malibu, the 2008 Motor Trend Car of the Year, and its-soon-to-be released all-electric Volt.

But, what about the rest of the auto business, how can it bring customers through the door and get them to sign on the bottom line? Here are some ideas that might work or might now. They are tried-and-true and they have attracted their share of business:

Service special mailing coupons -- Granted, this is an old saw that has been beaten on by car dealers for years, but, it's an idea that does work. If you offer someone a free oil, lube and safety check, the chances are very good that the customer will bring a vehicle to the dealership to have the work done -- free is free and who can beat that deal.

Since most of these visits are scheduled, an enterprising salesperson can be available to talk with the customer when he arrives and will make sure the customer has a seat and a cup of coffee and a little chat.

As they are are chatting the salesperson can mention the super deals that are available; and he can mention the dealership is great deals on used cars, such as the one being serviced, because it needs those cars for its lot. (source: mailing from dealership to home)

Using real "loss leaders" to bring people into the showroom -- This isn't the classic bait-and-switch where the salesman tells a customer the vehicle he wanted to look at has just been sold and the customer is then shown a "similar," more expensive model.

Instead, the dealer is willing to take a hit on some vehicles so that when customers drive their new Blattmobiles home, they can tell their friends about the super deals they received at XYZ Motors.

This is the oldest sales idea in the book, but it is one that works, word of mouth.

If someone is treated well by a dealership, the chances are good that friends, relations and co-workers about it and chances are equally as good three more customers result as they want to take advantage of the same program.

Yes, it may cost the dealership a bit of gross the vehicles, but they will likely make it up on add-on sales of things such as entertainment systems and the like. (source: retail sales experience)

Using real internet specials that are available only to "Internet customers" -- This one sounds like a no-brainer; it should be but it isn't.

For whatever reason, car dealers, collectively, have the same thinking process which says that "special deal" is available as a sales target for anyone, not just "special" internet customers.

To make this work, the "special" car has to remain an "internet" deal with a special price. This "special" can't be considered just another model to sell at the usual discount. If it is, then the dealer has just wasted a great chance at an extra sale. Based on our experience as an internet sales manager at a dealership this is usually what happens.

What should happen is that there should be some "real" internet specials -- at significant savings -- that are available only to "Internet customers."

These cars should not be for sale to other people for a certain number of days so that the "internet department" has its fair shot. Of course, after that time has elapsed these cars go back into general inventory so then it becomes anyone's horse race.

However, during the time it is an "internet special," it should have a much lower price that, even if loses a buck or two, will have the customer singing the praises of the dealership to friends, family and co-workers.

Again, word-of-mouth is probably the most powerful ad tool there is and all it takes is a good deal or two to encourage many others t become customers of a dealership

Real special sales events -- Nearly every weekend a dealership is holding a "special event sale" or something to that effect. Indeed, this is a sales ploy advocated by dealership trainers to new salespeople during their training sessions.

When they are trained on using phones salespeople are encouraged to ask customers if they are "calling about the big sale?"

If you are calling a dealership and here that line, don't believe that line because there usually is no "big sale" that weekend or any other weekend.

Indeed, as a trainer told us during a phone refresher class, we are "just trying to build a sense of urgency" that a customer might be missing something special.

Well, how about a "real special sales event" to which only select customers are invited and who are then given lower-than-normal prices. Further, they should be given extra value for their cars, so they have deals they really can't refuse.

Again, it could cost the dealership a bit of money, but, the word-of-mouth traffic and goodwill that this would build would be invaluable.

A real "red tag" special -- This would be a sale where customers would get real values on the vehicles they were offered, not just rewarmed and remarked vehicles -- the standard type of sales event where cars are marked up so that when they are finally sold there are no real savings as the customer ends up getting what the dealership was going to allow in the first place.

In a real "red tag" special, a car would be priced at a lower-than-normal figure as a starting point. It might even get somewhat lower and, of course the dealership's gross would be cut. If you think about this, though, the chances are good that the "red tag" vehicle will sell quickly and anyone else looking for that particular car will find it gone, so be prepared either to have another "red tag" special ready or have a similar deal available only for those who ask!! You can always charge a higher price to a later customer who isn't a "red tag" customer (source: experience as salesperson).

Here you have it! Some of these ideas are oldies but goodies. However, they are ideas that have worked in the past and should continue to work in the future even if the sales tools may have changed salesmanship is still salesmanship and that hasn't changed at all.