| Up-sell, Cross-sell When someone purchases a car they need financing and insurance – these are natural complements to the purchase. They also are highly prone to getting fancy wheels, better stereos and extended warranties – all, which get wrapped into the financing package. Increase Frequency of Purchase They can stay in touch by sending information on the latest models of the vehicle you own. By keeping the customer interested in new models they move them towards a purchase sooner, instead of waiting for them to discover the new model and build their own interest over 6 months to a year. Remember that if they purchase every 3 ½ years instead of every 4 years, the dealer increases revenue 15%. Other Ideas 1. Instead of trying to add products gradually in your up-sell process (e.g. "Your payment is only $250/month and for an extra $3/month, we can get you the alloy wheels", etc.), offer a full-package up-sell and present the comprehensive package with various payment amounts from 12 months to 60 months. Past experience has shown that 18% will take your full-package price. You can always remove products to make a deal work. You will still find that 25% of buyers will sell at the manufacturer's list price, with the customer not asking you to discount the vehicle price. 2. Work your database and send offers to people on your list. You should know what they bought from you before, what their price range was, and what you have that you could sell to them. You could easily get one or two orders from an email blast. 3. Consider bartering the lease of one car (new value of $20,000, but it only cost you $18,000) with a local radio station manager in exchange for $20,000 of advertising. Explain to the station manager that once that time is past, he can't redeem it, so why not put your ad on the air when there are no other ads to place. Make the lease two years, so at the end you'll get the car back and be able to re-sell it for at least $10,000. This way you get $20,000 of advertising for $8,000. 4. Approach large companies in your area and explain to them that you will create an account for every one of their employees and credit it with $500 in each of their accounts toward the purchase of a car over a certain value. When the employee comes time to buy a car (remember that 6% to 8% are always "buying now"), then it will be hard for them to pass up that $500 credit. 5. This one I learned from the Honda dealer in Japan. When a prospective customer or a current client comes into your dealership, don't expect that he'll go to your vending machine and buy a drink. Bring him a small menu card (laminated) and offer him coffee (hot or ice), tea (hot or ice), juice, soda or water. Forget the $200/month you might make from a vending machine. You will impress your clients to no end and they will start referring people to you. Go the extra mile and impress. 6. Get a used F1 replica cockpit and put it in your dealership. Allow clients to have a race. Then announce a competition, put up a compelling prize, send out a press release, send out an email blast to your list, and watch your dealership get some great PR and some great traffic. |