Tag Archives: Automotive Sales Processes

Your_Certified_Pre-Owned_CPO_Program

Are the headaches associated with bringing vehicles up to certified pre-owned (CPO) program standards worth it? For dealers, there’s certainly more work, money and time involved with finding, reconditioning and certifying vehicles for CPO programs.

On the surface, it may seem like the higher margins don’t really justify the higher cost of reconditioning and manufacturer fees involved.

But the financial equation isn’t that simple. The fact is, CPO programs attract a certain type of customer that is willing to pay a bit more for a used vehicle in good condition, along with a warranty, roadside service and other perks. This is exactly the type of customer you want in your database, and you have to look at the long-term value of that customer. Read More

Sales Manager Superstitions

Back in 1998, while I was selling cars at a small Chevrolet dealership in Georgia, we had a daily ritual known as a lot party. This “party” consisted of completely rearranging the lot by moving different types of vehicles to the front line to draw the attention of potential customers. After the cars were moved and lined up precisely, the process of blowing up exactly 99 red balloons began. I’m not really sure why the number had to be exactly 99, other than the fact that our sales manager was a big fan of the 80’s song, “99 Red Balloons,” by the band Nena. Once the balloons were ready, the salespeople gathered 10 to 15 each and began attaching them to the cars on the lot. I don’t know if this garnered any additional business, but my manager insisted this routine be done every day.

The car business, like baseball, is full of these type superstitions. Read More