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tomwhitejr · Sep 4, 2011

My two cents:

I sell Suzuki. I love Suzuki, but as a brand and product it is pretty low on peoples' shopping lists. In my market I outsell, in no particular order, Honda, Chevy, Nissan, Mazda, Hyundai, Kia, Dodge, Jeep, etc. In fact, only two Ford stores and a Toyota store outsell Suzuki of Wichita.

My customers buy Suzuki of Wichita - NOT Suzuki. I understand the definition of a product. Our product is our environment, culture, team, processes, and message.

I think Jeff is correct. While we are all selling metal, we should be focusing on the things behind the metal. The things that set us apart from all the other dealerships we compete with. This is truly our product and the most important thing to focus on...

Just sayin'

Sep 1, 2011

Jeff, The ONLY thing I was arguing about was the definition of the word "Product". I agree wholeheartedly with Alex's goal. And I agree with the statement, "If your people don't know how they are adding value, then they will not be adding much of it and they will not be fulfilled".

A car dealer is considered to be pretty darn successful if they can hold onto 3 cents of every dollar they bring in. There can be absolutely no doubt that developing a great culture at your dealership will add value for the customer. That "great culture" translates into being your brand. And if that can add 1 penny on the dollar, you've gone from being a average dealer to a highly profitable dealer.

If "evolving" the definition of a word helps you accomplish that, so be it.

Aug 23, 2011

After reading your post, dealership is also an important part, for an specific there is an specific dealer for that.

Used pickup trucks

Aug 19, 2011

In classical marketing terms, Ed is right about the car being the product or merchandise. The dealership is the end of the distribution channel, the retailer. That isn't to say that retailers don't add value to the product, they must. However, marketers generally don't refer to the value added by sales efforts as a product. The service of vehicle repair is a product, the service lane is distribution. Having said that, the lines can get a little blurry.

A retailer of bottled water at the beach adds place utility. Nothing more, but it is worth a premium. Walmart doesn't add value any differently than its competitors, but it does it for less. If you sell cars at a premium, then you need to be able to demonstrate the added value. If you can't demonstrate it to the customer in the age of transparency and choice, then you need to think about selling on a low-priced transaction basis.

Some retailers actually make the product. Starbucks and Cold Stones were mentioned. Both of these companies add value to the product, primarily buy making it custom. They both try to add value beyond the product: clean restrooms, atmosphere, friendly service.

I don't think anyone is wrong here, it is more a question of vocabulary. In the pop-culture that surrounds marketing, the vocabulary constantly changes. In classical marketing terms the word product means what it has always meant.

All this misses Alex's fantastic point. If your people don't know how they are adding value, then they will not be adding much of it and they will not be fulfilled. To Joe's point, enhancing confidence adds value, but I think some stores need to be realistic about how much of this value they actually deliver and what it is worth. Getting the shopper into the right vehicle with the right mix of accessories, financing, service contracts, etc. is also a job worth doing and being rewarded for. Rarely are the differences in vehicle prices equal to the cost of buying the wrong car and having to switch again. Proper matchmaking is just one way dealers can add value, but you need to be honest about whether or not you are in the business of proper matchmaking. I doubt anyone at a high-end dating service ever put a spiff on Ugly Betty because she had been around for 90 days.

Aug 18, 2011

Someone just sent this to me, and I think it fits in here: Login to view embedded media View: http://www.youtube.com/watch?v=u6XAPnuFjJc&feature=relmfu

Incentivize people with a vision. What is your product again?

Aug 18, 2011

Any of you people ever been in a Starbucks? Sure you have. If your like me, it's my second home. What happens if you get a bad drink at Starbucks? I'll bet most people don't know 'cause they never had a bad drink there.

According to John Moore who wrote Tribal Knowledge...Business Wisdom Brewed From the Grounds of Starbucks Coffee, Starbucks is in the people business serving coffee.

To answer my original question, IF you got a bad drink, the Barista throws it away and makes you exactly what you want.

Aug 18, 2011

Joe,

Maybe I'm just an old fuddy duddy, but I will always contend that the "what" is a the car. The "how" in the case of a car dealer, is by instilling confidence.

You can't take your eye off the "how" for a minute just as you can't take your eye off the "what".

The product and the process go hand in hand and one without the other is a major problem. So Joe, I'm in full agreement that the customer is looking for more than just the car, the product if you will. My concern would be that it might be easy for some to put more emphasis on "how" we sell rather than "what" we sell. In the long term, that is a recipe for failure.

Jeff mentions a number of companies. Cold Stone Creamery sells a great "what" and the "how" is spectacular. ShowBiz Pizza sold a questionable "what" combined with a spectacular "how" - they no longer exist.

I'm not suggesting that the car is the only thing thing that matters to a consumer. It's not, they have lots of choices and you had better be differentiating yourself. But in the end, it's the car they pay their money for.

Aug 18, 2011

What is the customer buying? The Product? The Smiling Sales Rep? The
Internet Cafe in Svc? The Inflatable Gorilla? NO. I think the customer
is buying... Confidence.

Consumers seek a seller that inspires Confidence. The showroom visit is all about overcoming fears:
-Do you have a history of selling good product?
-Is this Product offered at a fair price?
-Does this Product have a good history?
-Will this product get me to work?
-If this product fails, will you be there for me?

We Sell Confidence.

Aug 18, 2011

You might be a redneck if...

...you think what you're selling is the same thing offered down the street (aka Product).

Sorry Brother Ed, yes, car is a product, but that's only part of what a consumer is looking for.

Aug 17, 2011

Nope - but like most every other retailer, they sell products made by others.

Aug 17, 2011

Ed - does the dealer build the car?

Aug 17, 2011

OK Jeff - Point taken. I'd still contend that "product" of Cold Stone Creamery is the ice cream (with all the delicious toppings and flavors being mixed in). The product alone isn't only the REASON people eat there. But, that product (the delicious ice cream treat) still better be good.

At a car dealership there will be many reasons for a customer to buy from you including reputation, location, etc. But at the end of the day you're selling a car. You can't expect a customer to buy a car they don't want at a price that doesn't make sense - at least not very often. EVERYTHING matters but the car is still the product we retail.

A bad product with lots of nice amenities surrounding it is still a bad product.

Aug 17, 2011

Jeff Kershner: [Screw that - If it were my dealership, my business, my heart and soul, you better bet it would be a "product."]

Would it? Or would the DOLLAR be the heart and soul?

I know very, very few people who get into this business for the LOVE of selling and servicing cars. I know quite a few people in this business who LOVE making the income you can make in automotive.

So then, maybe, your "product" is your "focus?"

Michael Thompson · Aug 16, 2011

Great article Alex.

The part that gets interesting is how dealers execute and communicate that that quality product across all of their marketing outlets (especially in the digital realm). Very many dealer websites out there that do not effectively communicate a dealers quality product (or even a "why buy from us" statement) whether it be a slide on the home page or even a blurb on an "About Us" page.

Aug 16, 2011

Alex, I'll admit my brain became a little muddled with another person's views on a similar subject. I still feel that the "product" we sell is a car. It's about rolling iron over the curb. That said, if you don't establish a brand for your dealership and work hard to differentiate yourself from the pack, then your efforts as a marketer have failed and you will have far fewer opportunities to move the metal.

I agree with your two "Walking Away" points wholeheartedly!
1. It is all about your dealership.
2. Read Bob Lutz's book.

... but we could argue for days on the definition of "Product"

Craig · Aug 16, 2011

I'm going to Audible up Bob's book if it's available.....because like Ed sometimes my brain gets a little mushy from debating with a monkey online throughout the week.

Aug 16, 2011

After talking things through with Ed, in direct tweets, I think he had the misfortune of hearing this notion first from someone who is a bit less "articulate." I don't know exactly what that other person said, so I can't say whether we are on the same page or not (usually not).

At the end of the day there are two things I'd like people to walk away with after reading this article:

1. It is all about your dealership.
2. Read Bob Lutz's book.

Aug 16, 2011

After talking things through with Ed, in direct tweets, I think he had the misfortune of hearing this notion first from someone who is a bit less "articulate." I don't know exactly what that other person said, so I can't say whether we are on the same page or not (usually not).

At the end of the day there are two things I'd like people to walk away with after reading this article:

1. It is all about your dealership.
2. Read Bob Lutz's book.

Craig · Aug 16, 2011

Alex,
I'm digging this post....whether or not Ed thinks it's crazy talk.

I think building a brand and selling that brand is the difference maker in lots of transactions by the time we get face to face with a customer.

How and where we "sell" that brand is the whole other discussion that happens on here with the majority still not understanding the where to sell that brand is in space....digital space, that is.

Alex Snyder · Aug 16, 2011

Our manufacturers and vendors can answer this question easily about their own businesses, but can the dealers? A product is a "thing produced by labor or effort. "A "thing" isn't always something physically tangible.

What is the product of a dealership?

This isn't a question anyone ever answered for me directly. It wasn't something anyone directly trained me on, as I think it was just assumed I knew it.

The product of a dealership is the dealership.

I must admit, it is quite the duh statement. There really isn't anything special about it, but once it is stated so plainly it makes all the sense in the world. Was this ever defined for you?

Now that we know our product is our dealership let's talk about what a quality product is. We also know what that is. It is simply something you want to buy. The level of the quality determines the price. It is a brand; it is a reputation. A quality product easily creates referrals, it doesn't have to ask for reviews, and it generates fans.

Look at Apple. They build operating systems, but there are plenty of choices in operating systems. So why do Apple's customers hang on its every new "thing" and talk about it like they're part of a cult? Why do they pay more for it over and over and over again?

We can talk about Apple and everything they do all day long, but I'd rather you think about how your dealership is a product.

How is your dealership a quality product?

Is it time you define that for your coworkers and staff?

[highlight color="#fddcaf" font="black"]For further reading on this subject, check out Bob Lutz's new book: Car Guys vs. Bean Counters: The Battle for the Soul of American Business [Amazon]. Yes, this article was inspired by this book. It is definitely worth the read.[/highlight]

Aug 17, 2011

Thanks for including the PCG Pit Stops is the list!!

Aug 14, 2011

This is a nice feature..love it!

bpulseadmin · Aug 14, 2011

DealerRater Introduces Added Feature to Certified Dealer Program that Enhances Dealers’ Review Pages to Showcase Employee-Specific MyReviews

DealerRater® introduces an added feature to its Certified Dealer Program that enriches the appearance and content of dealer review pages by showcasing a dealer’s top-reviewed employees and their associated review counts. Given this enhancement, employee-specific MyReviews pages are now more predominantly accessible via hyperlink from the Certified Dealers’ main review pages.

Waltham, Mass. – August 12, 2011 – DealerRater®, the nation's premier car dealer review website, announced today an additional feature of its Certified Dealer Program that will enable dealers to better showcase employee-specific review pages.   With this enhancement, DealerRater updated the appearance and content of dealer review pages by showcasing a dealer’s top-reviewed employees and their associated review counts. As a result, a dealer’s employee-specific reviews or “MyReviews” pages are now more predominantly accessible via hyperlink from the main dealer review pages.

“DealerRater’s employee-specific MyReviews pages represent the digital age equivalent to an Evidence Manual,” said Chip Grueter, president of DealerRater.   “With this latest feature enhancement, our dealer partners can easily promote their excellent sales and service teams for a competitive edge and quickly hyperlink a prospect into an employee’s “Evidence Manual” even before that prospect enters the store.”

MyReviews pages are one key feature of DealerRater’s Certification Program. These employee-unique review pages enable dealers to break down the barriers of distrust that are inherent in the auto industry and differentiate their staff from other dealer sales and service individuals that potential customers may be considering when purchasing or servicing a car.

More than 3,900 dealers across the U.S. and Canada are enrolled in DealerRater’s Certification Program. As an online reputation management tool for car dealers, the Certified Dealer Program is designed to help car dealerships reach DealerRater community members while demonstrating an utmost commitment to quality customer service.

About DealerRater

DealerRater was founded in 2002 as the first car dealer review website worldwide. With 500,000 people joining the DealerRater user community each month, DealerRater is fast becoming the world’s #1 online resource for anyone seeking third-party information on automobile dealerships.   DealerRater features more than 40,000 U.S. and International car dealers, 400,000 user reviews and over 1,000,000 classified ads. DealerRater attracts more than 5 million consumers every year who visit the site to search for car dealerships, read current reviews, write their own descriptive reviews, and find car deals – all for free. Car dealers are rated on the criteria of customer service, quality of work, friendliness, price and overall experience. In addition, DealerRater offers qualified car dealers a Certified Dealer Program as a reputation management tool to help them grow their online presence and achieve higher SEO rankings across the Web. Today, over 3,900 dealers are members of DealerRater’s Certification Program. For more information, visit www.DealerRater.com or call 800-266-9455.

TomLaPointe · Oct 30, 2013

Uncle Joe - the growth of CarChat24 and other chat vendors proves this is more valuable today than it was 30 months ago. Live Chat is like many dealer vendors - it can be done in-house (like dent repair or paint touch-up), but because there are specialized tools and processes involved, sometimes it is best to use a pro, and sometimes a combination is best. Many of our dealers have their own in-house chat, but use us as backup if their reps are tied up or after hours.

Sep 12, 2011

JQ, I have no clue about all the things you have used but I can tell you this......I have dealers in rural parts of the country getting around 100 chats a month. I wouldn't call your destination a "e-commerce-less-driven-marketplace" because they are obviously going to your site with that many unique visitors. Many of my metro dealers don't get that many. You should get no less than 250 chats a month. This is not a science it is a basic conversion tool and if done properly it will convert that many. I have seen websites with 400 unique site visitors get 12 chats a month so your numbers are way off. I believe the "pretty girl" gives an impression you aren't speaking to someone at the dealer. If it is an "Industrial" town or a die hard "Amercian" town than you may be putting them off with a stock image of someone who is on a million different websites. If deployed on all sales related pages you should have huge success. Don't give up my friend. Keep trying no matter what company you use. I promise success is there you just have to find it. Maybe some A/B testing will be good.

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