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What would you do?????

I'm probably in the minority here, but one of my stores sells as many trucks out of the state of Texas as we do in the state. Some of this is primarily due to our extremely heavy involvement in rodeo and partially due to some very targeted campaigns we have put together in rodeo-heavy regions across the country. I'm sure some dealers in other states have seen our ads and said, "WTF? They're either lost, getting ripped off or just plum stupid!"

I'm not saying that is what you are seeing here but just throwing it out as a possibility. As we all strive to become Dealership 2.0, I think it is important to embrace the fact that factory dictated DMA's mean nothing and it is entirely possible to sell a vehicle to a customer 700 miles away and they never step foot in your dealership. I get very frustrated at times working for a dealer group with, to put it nicely, a very odd view of how dealerships operate...however, they embraced this "no geo-boundaries" philosophy a long time ago and have been very successful with it for many years.
 
The root of the problem is most ad agencies charge a percentage of ad spend as their fee. If they don't exhaust there budget, their revenues drop. The solution is to eliminate metered pricing.

Pricing should be fixed or based on workload, not be a % of your spend.
Having the vendor be incentivized to convince you to spend more requires real trust.
 
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✨ AI Highlights

Rick Buffkin notices dealerships running poorly targeted digital ad campaigns that waste budget by advertising outside their markets and states, and asks the community if he should notify them. The discussion reveals this is a common industry problem where vendors mismanage ad spend by expanding geographic targeting at month-end to exhaust budgets, though one dealer counters that out-of-state sales are sometimes intentional and legitimate. The key insight is that dealers should audit their ad vendors' targeting practices, as wasteful spending drives up advertising costs for competitors in the same market.

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