- Apr 28, 2009
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- First Name
- Jerry
Major issue with this new dealership I work at
- Thread starter MauricioVincenzo
- Start date
I agree with Jerry that 20% has always been an industry average since I can remember from the 90's. Doug probably remembers a little further back
! But it use to be that the average person went to 6-8 dealership's shopping. Now the average I hear is 1.8. Hell, I am not even going to buy brochures anymore after our remodel because we hardly give any out since all the info is so available on any device these days.
I think since people are visiting less dealers the floor traffic closing rate has to have gone up. I would like to see data on the floor traffic closing rate of new vs used.
Eley,
I agree with Jerry that 20% has always been an industry average since I can remember from the 90's. Doug probably remembers a little further back
But it use to be that the average person went to 6-8 dealership's shopping. Now the average I hear is 1.8. Hell, I am not even going to buy brochures anymore after our remodel because we hardly give any out since all the info is so available on any device these days.
I think since people are visiting less dealers the floor traffic closing rate has to have gone up. I would like to see data on the floor traffic closing rate of new vs used.
They had cranks on the front of cars when I started selling them.
Ya'll are absolutely correct. NADA came out with that statistic over 30 years ago and dealers have held tight to it since.
I'm siding with Jeff.
Dealers log their internet deals on their ups log with the floor sales. That didn't exist 30 years ago. My guys were closing over 80% of their shown appointments which went on the same log. Do I know what percentage of sold should be on that log? I have been asking the question for a year. I know it isn't 20%! I think it is over 40%.
- Dec 30, 2009
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- Yago
It has definitely changed from that 20% and this is a much more important number to know than lead percentage from autotarder or Cars.com which seem to get discussed every day.
- Apr 28, 2009
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- First Name
- Jerry
BS, it's not 40% or more. One needs to look at all leads, most don't even differentiate their leads. Appointments close at a 50% rate, and that''s always the best customer that can visit your dealership. Fresh traffic is not even close to that and any dealer that says differently is clearly not logging all their traffic. A beback is not a fresh up and you should count those people in your fresh close stats.
Doug, you were selling 80 cars off 100 shown appointments?
Over 40% on fresh up's, never touched your store, I too think that is high.
With 80% of people visiting Google search to start their search its highly unlikely anymore that there are more than 20% true "fresh ups" or "drive by" customers. Everyone here has gotten 20-30 mins later in what you thought was a "fresh up" the "oh yea, I have been on your website and looking at this car for a while".
In rural America I could understand a higher fresh-up and close rate. For example, we live in an area with 14 Chevy dealers in 45 mins of us. I have 20 group friends that have stores that are the only Chevy store for 60mi or more.
Eley,
We only considered it an internet deal when they had an appointment or asked for an Internet Manager by name. Just because they said that they saw a car on AutoTrader didn't make it an internet customer. Yes, by my standards we closed that many. They have already picked out the car and know the price, why wouldn't they buy it?
I'm back in Dallas. You might be 20 miles away but that might be an hour in traffic.
We only considered it an internet deal when they had an appointment or asked for an Internet Manager by name. Just because they said that they saw a car on AutoTrader didn't make it an internet customer. Yes, by my standards we closed that many. They have already picked out the car and know the price, why wouldn't they buy it?
I'm back in Dallas. You might be 20 miles away but that might be an hour in traffic.
We will have to disagree on this. If the average buyer goes to 1.8 stores, if they don't buy at your store they will at the next.
I don't have a dog in the race. I don't do sales or phone training and I am not looking at going into another store. We sold 20% of our leads (which included calls). We also closed 80%+ of our shown appointments. All internet customers are logged into the CRM. I had a very talented group of ISMs that worked cradle to grave. My least experienced person had 5 years in the business. You will never duplicate this with $10/hr. phone operators handing them off to the first salesperson they see.
There is a Toyota dealership about 5 miles from here, that does even better.
- Dec 30, 2009
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- Yago
Doug,
I would imagine that foot traffic gets even more affected by metro VS suburb store, weather, traffic, day of the week, etc than the Internet would.
Thinking about it for a second I'll imagine that a BMW store may get people like me that just go to look at the new M series and not buy while a KIA store gets none of those. Maybe.
