Times are tough. It’s tempting to compete on price so your team can move as many boats as possible, but it’s not the best strategy. You need a better message than “buy from our dealership because we’re cheaper than the other guys.”
Even if you are cheaper than the other guys!
Because sooner or later, someone is going to come along and do it cheaper than you can.
And even if they don’t … it’s tough to build a sustainable business based on low margins. You need a healthy profit margin to be able to build your team, invest in marketing and still leave enough left over to support your lifestyle.
Don’t be cheaper than the other guys. You need to build a brand and a marketing system that gives your dealership the ability to preserve your margins and enjoy a sustainable, profitable business.
Here are a few different ways to go about this:
Build Your Brand & Tell Your Story
If you’re seen as THE go-to expert in your area, customers will pay more to do business with you. Not only that, but they’ll begin to seek you out and they’ll be willing to jump through some hoops in order to work with you instead of the competition. Build your brand and tell your story. It will make you uniquely valuable in your market.
Differentiate Your Customer Experience
You want to avoid creating an “apples-to-apples” comparison with your competition. What can you do to make your customer experience meaningfully different from everyone else in your market?
Speed or Convenience
If you can get it done faster or more conveniently than your competition … that’s an advantage that people will pay extra to enjoy. What can you do to make it convenient for your customers to do business with you? Extended hours? VIP Delivery options? Concierge-level service?
Top Quality Staff
A top-quality team is very attractive for buyers – especially the type of buyers who aren’t going to be price-sensitive. Invest in your team. Hire the best people you can find, even if they may be more expensive in the short term. (In the long term, they will be much more profitable for you, even if they cost a bit more.)
Premium Experience
What can you do to create a truly premium experience for your customers? Provide educational and operational training events? Hold memorable appreciation events? Elevate your showroom’s fun factor? Provide exceptional client and customer service?
Ideally, you can combine two or three of these characteristics to make a strong case for why you are WORTH IT.
And please hear me on this point – I’ve never worked with a business that can’t make at least one of these arguments.
It’s not easy, but stop competing on price.
About the Author: Danny Decker is an author, speaker, serial entrepreneur and marketing consultant. Danny is a frequent speaker, Dealer Week educator, a contributor to Forbes.com and hosts the Marketing Simplified Podcast. His book, “Marketing Simplified,” is currently available on Amazon.com and other retailers. Learn more, download a free marketing resource and connect with Danny at www.DannyDeckerMarketing.com.
More Danny Decker marketing tips are available at MRAATraining.com.
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