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Automotive Workshop

What Every Media Rep Needs To Know Before Calling On a Dealer. Automotive Workshop. John Potter VP/Director RAB Radio Training Academy jpotter@rab.com. Automotive Workshop. The Stats. Automotive Drives America. Sources: Advertising Age, June, 2007. Automotive Workshop.

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Automotive Workshop

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  1. What Every Media Rep Needs To Know Before Calling On a Dealer AutomotiveWorkshop John Potter VP/Director RAB Radio Training Academy jpotter@rab.com Automotive Workshop

  2. The Stats Automotive Drives America Sources: Advertising Age, June, 2007 Automotive Workshop

  3. Automotive Drives America A Sales Slowdown Total US Units Sold In Millions 16.5 16.1 15.7 Sources: JD Power & Associates, January, 2008 Automotive Workshop

  4. Top 10 Brands 2007 Sales (000) Automotive Drives America 2,250 2,161 2,062 1,371 1,058 941 543 485 475 467 Top 10 of 38 represent 73% of units sold Sources: JD Power & Associates, January, 2008 Automotive Marketing

  5. Average annual sales: $31.9 million Dealership sales are 20.3% of all retail Average number of employees: 53 Average annual earnings of employees: $47,191 Average annual dealership payroll: $2.49 million The Average Auto Dealer Source: NADA, 2006 Automotive Workshop

  6. Reduced profit margins by factories Reduced sales High cost of inventory Hard to find and pay for talent Sales people Skilled mechanics Skilled parts Advertising media choices Cost of advertising 2% Owning a Dealership Not For the Faint of Heart Automotive Workshop

  7. Customer research Customer convenience Customer power Full disclosure – sticker & invoice online Distant shopping New Internet departments Internet Is Changing Everything Automotive Workshop

  8. New (lower profit, higher dollar) Retail Compact (lower %) Mid-sized (average % - around 7%) Large (higher %) Fleet Used (higher profit, lower dollar) Service Parts Body shop F & I New F & I Used Dealers Profit Centers Automotive Workshop

  9. Factory Branding Factory money Dealer groups Event Co-operative Dealers Event and branding Dealer money Three Buckets $350 Automotive Workshop

  10. Generally 2-3 months Some cases 5 months Varies Purchase vs. lease Domestic vs. import Model Buying Cycles Automotive Workshop

  11. Dealer (owner) – profit GM – salary plus 1 ½ -2% of gross or net profit New Sales Manager – salary plus bonus on gross or net profit Used Sales Manager – salary plus bonus on gross or net profit Salespeople – commission (generally 20-30% of gross profit less pack) Dealer/Manager Motivation Automotive Workshop

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