Jan 16, 2014
With the change in our lane structure for 2014, the run order for all of our independent dealer lanes is based on sales percentage for the previous 12-months.
So to help all of our dealers we sat down with Blair Arnett, Sales Manager for CAA, and compiled a list of 6 ways to increase your sales percentage, and consequently, your run position.
1. Build and Protect Your Reputation
When you buy a car for your lot, you usually purchase from companies or dealers that you trust. It's the same with your buyers. Nobody wants to be nickel and dimed, and nobody wants to buy from someone they think is trying to deceive them.
If you're honest and sincere in your business dealings it will always come back around to benefit you in the long run. Make a reputation for yourself and it will build your brand image better than any marketing campaign or sales gimmick ever could. Then, people will be willing to pay that extra $300 because they know they're getting a car in good condition that is backed by an honest businessman.
2. Rep Your Own Vehicles
We are happy to help you Rep your cars here at CAA, but there is no substitute for you selling your own cars on the block. You can give instant information to your customers and it gives you a visible presence that you are backing your own vehicles.
But the biggest reason to rep your own cars is that you can make quick decisions about price! It's no different than on your sales lot, where a customer standing in front of you is far more likely to purchase a vehicle than after they leave the lot. Once your potential buyer leaves, you have to follow up with him to try to close a sale, and by then he may have found something else he wants.
3. Take Advantage of On-Site Services
CAA has a large reconditioning facility that specializes in making your vehicles look their best on sales day. We also have a mechanic shop to fix up your cars; paintless dent repair; Carolina Key is even onsite to make keys for your vehicle.
If you do all of the little things that add value to your vehicle, then it builds your reputation and ensures a better buying experience for your buyer - hopefully gaining a repeat customer.
4. Market Yourself
You need to sell to your fellow dealers much the same way that you sell to your customers on the lot. If you're still new to the industry or to CAA, don't be afraid to provide a sales incentive to your buyers. You can do a contest on the block, or a weekly or quarterly giveaway, etc.... The only thing you cannot do is give cash incentive on a particular vehicle (must be on a group of vehicles or spread out through your buyers).
5. Know Your Market Segment
Every Dealer is looking for a particular set of cars. Some shop by price, or manufacturer, or the type of vehicle. It's going to be hard to sell a Ford F150 to a dealer that wants compact cars for an urban market. On your lot you most likely carry a particular set of vehicles. So get to know the other dealers in your segment of the automobile market and sell to them. By building a good reputation and knowing your customer personally, you've greatly increased your sales options.
6. Take the "First Money"
It's a known fact that "The first money is usually the best money." The first time a car runs through the auction it will almost always bring the highest price that it will bring. Re-running it again the following week an hoping for a higher price is not usually going to pay off, and it's going to cost you more fees as well as keep you from getting the best price on your vehicle. The exception to the rule usually lies when a vehicle runs again the following week after being cleaned up and put in much better shape than the previous week.