"Old GM" Dealership Mindset

[skylark68]

Originally Posted by BVPBG

Although I enjoy reading many of the posts and responses on this site I almost never join the discussion. This time I must.

What is the point of advertising, and how would you spend your money if you were running a dealership and a budget, you needed to sell vehicles balance inventory and pay floorplan on the cars and trucks you have in inventory.
As I am sure many of you know the highly desirable vehicles can be very difficult to come by and GM is always asking for favors in regard to inventory.

As a BPG point ( and a fairly large one) how many Acadia’s and Enclaves do you think we have been allocated? Other than to tote the corporate barge should I advertise a vehicle that already has more customers coming in to purchase than I can provide vehicles for? And by the way that are being sold in some cases with little discount and no real support from the mfg..

I agree that many of the new products are class leaders and at some point I hope that the slower moving vehicles will be fazed out or replaced with more desirable and "better" product, but until then what would you do?

Those of you who are consumers and talk about canyon or lacrosse and how and what we should stock should open your eyes. For me if the canyon no longer existed (like the Pontiac and Buick Vans) it would not affect me in the least. To inventory a vehicle that can sit for 2, 6, 9 months or more so that I can sell it at no profit is a benefit to whom?

I for one see great things happening at GM and hope that someday I won't need to advertise blow-out deals on old 2nd class product but until then we still need to run a business and if we are not profitable who will be around to sell and survive your favorite American cars and trucks

Sorry if I am all over with this but there are so many things to say that I could write all day on any one of these subjects

Thanks for joining the site and including your observations/comments. Please chime in often.

[DealerGuyAtl]

Originally Posted by BVPBG

Although I enjoy reading many of the posts and responses on this site I almost never join the discussion. This time I must.

What is the point of advertising, and how would you spend your money if you were running a dealership and a budget, you needed to sell vehicles balance inventory and pay floorplan on the cars and trucks you have in inventory.
As I am sure many of you know the highly desirable vehicles can be very difficult to come by and GM is always asking for favors in regard to inventory.

As a BPG point ( and a fairly large one) how many Acadia’s and Enclaves do you think we have been allocated? Other than to tote the corporate barge should I advertise a vehicle that already has more customers coming in to purchase than I can provide vehicles for? And by the way that are being sold in some cases with little discount and no real support from the mfg..

I agree that many of the new products are class leaders and at some point I hope that the slower moving vehicles will be fazed out or replaced with more desirable and "better" product, but until then what would you do?

Those of you who are consumers and talk about canyon or lacrosse and how and what we should stock should open your eyes. For me if the canyon no longer existed (like the Pontiac and Buick Vans) it would not affect me in the least. To inventory a vehicle that can sit for 2, 6, 9 months or more so that I can sell it at no profit is a benefit to whom?

I for one see great things happening at GM and hope that someday I won't need to advertise blow-out deals on old 2nd class product but until then we still need to run a business and if we are not profitable who will be around to sell and survive your favorite American cars and trucks

Sorry if I am all over with this but there are so many things to say that I could write all day on any one of these subjects

Great post! I too get a little sick of seeing the "arm chair experts" spout off about how stupid the Dealers are when they don't have a clue about what actually goes on in running a Dealership. If they understood "allocation" of hot selling vehicles and accepting the slow sellers so you can get a hot seller, then maybe they wouldn't be so critical.

[t-rex]

Originally Posted by BVPBG

Sorry if I am all over with this but there are so many things to say that I could write all day on any one of these subjects

Please, write all day if you have the time!

I strongly encourage people from inside the industry to give their comments and explain to those of us on the other side of the equation what's going on on your side of the fence.

I for one don't like always having to make assumptions or do guesswork based on limited experience. The more input we have from dealers, sales managers, salesmen, techs, and the like, the more informed we are and the better we can understand the big picture.

Please, keep comments, coming.

And welcome to GMI!

[Wagon of Fury]

This local dealer had an innovative approach to consumer marketing (some NSFW language) http://www.youtube.com/watch?v=RFW4-QswUg4

[American_Muscle]

i wouldnt mind an 08 grand prix. those super charged v6's are QUICK

[1999 White C5 Coupe]

nsap,

Would you buy a new Equinox from that dealership....................

[nsap]

Originally Posted by 1999 White C5 Coupe

nsap,

Would you buy a new Equinox from that dealership....................

HA.

[bangstudios]

Originally Posted by ericmvest

General Motors dealerships consistently get higher JD Powers sales and service customer satisfaction ratings than Toyota brand dealerships. I am sure General Motors dealerships' advertising and sales stategies could improve, but on the very important aspect of customer handling, General Motors dealerships do a better job than Toyota brand dealers.

Speaking from personal experience, I was delighted with the dealership experience when I purchased my new Silverado a week or so ago -- and this is at a small town/city dealership. The sales staff were INCREDIBLY customer oriented (up there with Bavaria BMW's when I lived in Edmonton) and the whole sales process was smooth as proverbial silk.

In addition, post-sales followup was better than ANY other purchase experience I've ever had: part of the deal was that a boxliner would be included -- they ordered the liner immediately, it was in stock the next day and they called me TWICE to come by to bolt it in. I didn't even have to make an appointment: "just come on by; it's a simple installation, so just drive up to service when you have a chance".

Really, really great. It doesn't sound like a big deal, but it's small efforts like this that make the purchase memorable. No cheezy salespeople, no BS "hidden charges" and no plus-sales pressures. 100%!

[78chevyman]

Originally Posted by 78chevyman

The biggest problem at my dealership in South Texas is that most of the people in our area have not so good credit. They love the products and they flock in to kick the tires...but I had a lady the other day with 2nd chance credit and she wanted a 2008 Malibu LT for under $300 a month...not possible. So that is the common problem with most of the customers today in my area. I am not saying that some...and I mine a few...people in our area have good credit...but they want a 2008 Mailbu for under $300 too...very unrealistic on a $23K+ car.

Another problem I have is people having the guts to ask for invoice on our vehicles.

Our dealership is very small and we are competitively priced...believe me...when we sell new vehicles, we don't make very much gross at all already...but we do not disclose invoice...that is just another bullet they can use in their loaded gun!

I wish I could tell them..."Can I come to your place of business and get something for free from you and you don't make a profit on it?"

Crazy people today...

[CobaltSScrazy]

Originally Posted by 78chevyman

Another problem I have is people having the guts to ask for invoice on our vehicles.

Our dealership is very small and we are competitively priced...believe me...when we sell new vehicles, we don't make very much gross at all already...but we do not disclose invoice...that is just another bullet they can use in their loaded gun!

I wish I could tell them..."Can I come to your place of business and get something for free from you and you don't make a profit on it?"

Crazy people today...

I guess it depends on where you live, in Metro Detroit and the North East there are GM dealers a dime a dozen and if you can haggle them back and forth, good for you. The PROBLEM with vehicles is it is such a high cost thing and there is no standard. You could sell a Malibu LT for 21.9 or 23k at two difference dealerships for the EXACT same car, thats wrong, it should be against the law. When I buy an Ipod or a computer, its a standardized price no matter which best buy, circuit city, or apple store I end up going to.

My family gets the GM discount so fortunately I don't have to deal with any of that garbage haggling and dealerships screwing me over, if I didn't I'd probably buy a Saturn and if I was uber-rich I probably wouldn't care and just go to where my friends purchase theirs and ask for their car salesperson.

CobaltSS

[YupYupYup]

Not all dealers are bad...And service ranking ARE higher than Toyota for the most part. However some dealers, and their staff, just don't get it and end up ruining it for thousands of other dealers/ GM...

Anyone got any pics of huge inflatable gorillas on the lot?

[adplusone]

Chevy dealers in our market have an eleven day supply of Malibus...they are hot and good gross profit units (for a car).

Chevy nationally has delivered both the product and the advertising to support it. And more products are coming....just not now.

Now, if you are a Chevy dealer and can not keep a Malibu in stock but you have 800 other vehicles on your lot what are you going to advertise?

At best with a full supply of Malibus, it will represent no more that 10-15% of a total Chevy dealer's sales...

That other 85% has to be moved down the road...the floor plan meter is ticking....

[Greg Burr]

Great Subject!

I ask why oh why doesn't the local Checy dealer have the new Malibu in plain view of traffic. Instead they have trucks or their used car inventory (including other makes) in plain view.

They're putting their worst foot forward, often showing the stock thay want to get rid of (focusing on their problem), instead of wowing the customer and changing perceptions (focus on the customer).

[adplusone]

Originally Posted by CobaltSScrazy

When I buy an Ipod or a computer, its a standardized price no matter which best buy, circuit city, or apple store I end up going to.

CobaltSS

And if that statement is true, the Department of Justice boys will be filing those "Price Fixing" lawsuits.....

I have seen a price range of $ 50 on the same ipods...computers are even more price competitive.

[steinravnik]

Originally Posted by ericmvest

General Motors dealerships consistently get higher JD Powers sales and service customer satisfaction ratings than Toyota brand dealerships. I am sure General Motors dealerships' advertising and sales stategies could improve, but on the very important aspect of customer handling, General Motors dealerships do a better job than Toyota brand dealers.

I have always received excellent dealer service from numerous GM dealerships in numerous states.