At Digital Dealer Tampa, I had the pleasure of co-moderating multiple mastermind exchange sessions with various topics chosen by the dealers centering around used vehicles. For those that don’t know what a mastermind exchange session is, in these sessions, the dealers choose the topics and get advice and solutions from their peers. I was incredibly pleased to see packed rooms of dealers seeking advice on multiple topics.
Here are nine of the hot topics discussed during the exchange sessions at Digital Dealer:
- Used Vehicle Acquisition – Of course, we all know that this is a huge challenge right now, with auction prices soaring based on consumer demand. Dealers discussed multiple ways of acquiring vehicles off the street directly from consumers, like using sites such as caroffer.com and paying attention to popular consumer sales sites like eBay, Craigslist, Facebook Marketplace, and software solutions.
- Digital Retailing & Value Beyond Conversions – In a group discussion, dealers
discussed if/how they are using digital retailing tools on their websites and what they have experienced. The biggest takeaway was that offering digital retailing makes consumers feel like they have a choice on how to complete a transaction online. By making a customer feel in control of the process, customers have more options which will help with overall conversions. - Transportation – Dealers discussed with each other effective ways of going out of their PMA and selling cars on a national level. They discussed methods of completing paperwork, who is delivering that vehicle to the customer, and, if so, how to calculate transportation costs for a customer who is distant. For example, one dealer said they calculate at $1 per mile, and others said they have an online transportation calculator right on the vehicle’s VDP so customers can get transportation estimates on their own. Dealers shared a lot of varying opinions and options, but the bottom line was how they should make it simple for a customer to buy a vehicle from them regardless of where the customer lives.
- Advanced AdWord Campaigns that Drive True ROI – There was discussion about whether independents should be investing in AdWords. The consensus was that AdWords was something that everyone should be using. Advice was given that dealers should be looking at cost-per-sale rather than other metrics such as cost-per-click, conversion rate, or cost-per-lead. There was an even deeper discussion on how to use AdWords to target low-funnel customers that would give them a more predictable ROI.
- Website Optimization – Having a website that isn’t cluttered with every type of
widget but instead focuses on aesthetics and performance was a hot topic.! Dealers discussed how industry leaders and disruptors are creating clean and user-friendly websites. By making it look and feel more relevant, consumers find an easier process and will also allow dealers to better track performance. - Fighting Disrupters – Disruptors told consumers what they wanted to hear with messaging like “Car buying shouldn’t suck!” These messages resonated with consumers that agreed that buying a car should be easier. Disruptors played on consumer emotions and made it seem like car buying should be easier. Dealers discussed how the way to fight back is to beat them at their own game! If a consumer has a choice between buying a vehicle they’ve never seen OR visiting a dealership 12 miles away – where they can see, drive, and kick tires, and, if all else is equal between what the disrupters offer and what dealerships do, consumers will pick the dealership! Ensuring that the customer has a better experience and telling your dealership’s story is imperative to accomplish this goal.
- What Is and What Isn’t Working in Marketing – Dealers discussed multiple platforms like Facebook, TikTok, radio, television, direct mail, and AdWords, with the consensus being that effectiveness ultimately depends on each dealership’s market, budget, and the fact that everything is worth doing. But still, some will work better for some dealerships than others. The fact that there are so many options made this a popular conversation.
- Dealing with Lease Terminations – The focus of this discussion was how there are some captive OEMs that don’t allow dealers to profit on the sale of a lease return. A dealer shared that his store is dealing with as many as 170 buy-outs per month, causing him to utilize his store’s human capital while losing money with no sales to recoup from them. Captive lenders and OEMs that don’t allow dealers to make any money combined with consumers who are frequently choosing to buy out their lease because there is no better option really handcuffs dealerships. Of all of the topics discussed, this was the most frustrating for them as nobody had an answer to this problem.
- Inventory Management – This discussion centered around increasing turn rates and pricing more effectively compared to their market. There was a lot of engagement about ways to be more profitable and turn cars faster and more efficiently.
Join us for Digital Dealer Las Vegas
These were just some of the examples and topics discussed during the mastermind exchange sessions at Digital Dealer Tampa. Both Matthew and I want to thank the many dealers who chose to attend, participate and share their advice and knowledge with their peers! At the upcoming Digital Dealer Conference & Expo (Oct. 11-13, 2022, at The Mirage), Tracy Myers and I will facilitate more mastermind exchange sessions, and we hope to see you there!
Originally Published in the May/June issue of Dealer magazine.
Troy Spring is the owner of Dealer World, Agency 345, and co-founder of Dealer Funnel. His roots in advertising started while he managed four automotive dealerships and the large advertising budgets for the stores. The dealerships all grew under his watch. He credits much of that growth to the advertising decisions he made to drive more business to each location. He has spent the last decade perfecting what he calls the four pillars of advertising: reach, frequency, creative, and cost. He is a strong advocate of this formula. He spends much of his time sharing these concepts as a national speaker and occasional guest on podcasts.