Endangered Profits

The car business used to be a people business, but the machines are taking over and turning it into a transactional business of commodities and insisting that front-end profit become a thing of the past.


Stripped away will be what everyone is currently overlooking:the actual value you provide. It's not selling cars. The real value is helping people who have problems, arranging financing, handling trade-in issues, giving advice, and simplifying the selection process.


This likely future is a nightmare scenario that dealers should be fighting to avoid. You can choose to join the fight against these forces…the fight for independence…or you can assimilate…be slowly homogenized, commoditized, equalized, and finally downsized.


We believe there is another version of the future. It is a future where the car business is fun and profitable again. It's the renaissance of a once glorious business.


In truth, it’s a revolution. And you are needed. Here’s our position:


1.       The car business should be enjoyable…even fun, again.


2.       Car dealers should be respected and influential members of their communities.


3.       Dealerships should have a competitive advantage other than low price.


We’re proposing a better kind of success and we can get there together…But how?


First, pick a side.You must choose or it will be chosen for you. You can take a passive role and let the future happen to you or you can take an active role and fight for what's rightfully yours to create…the future you desire.


Second, quit the price war. Pull the troops out. Throw up the white flag. The cost of victory is complete destruction and annihilation of the car business as we know it.


Third, declare that there is something unique about you and your dealership…a reason for customers to choose you over other dealers, other than low price. Even if you can’t enunciate what that difference is right now, don’t worry. We can help.


Fourth, commit to this new set of values.


The car business should be fun:Americans have a love affair with cars. Cars are an extension of our personalities. Our neighbors and co-workers see the car we drive and judge us by it. The powerful force of the human ego is intertwined with every American’s desire for a nicer, newer car. You can use that desire as a force of positivity and prosperity. You can help people get the nicer, newer car they so ardently desire and make a very healthy profit in the process. It’s fun to help people get what they want.


Car dealers should be respected:merchants ensnared in a price war aren’t respected. They’re walked on. By exiting the price war and committing to providing exceptional service and being a problem solver for your customers you can regain the confidence of your community. By positioning yourself as a source of help and support you can become a beacon of respect.


Dealerships should not compete on price:study after study of consumer buying behavior has found that price ranks low on the list of reasons buyers buy. Participating in the price war erodes the confidence and respect customers have in you. There are huge masses of prospects available to you who are yearning for something different than the lowest price. But they’re invisible to you and you’re invisible to them as long as you continue to be a pawn in the commodity game. Instead of fighting to offer the lowest price, you can increase the value of the service you provide and have all the customers you can handle.


Why is this so important?


Well, did you dream of more than this for your business? For your life? When did this become acceptable? Is this why you signed up to be a dealer, or are you still in business to make a profit? And do you believe that the profit you make should be determined by how much value you bring to the marketplace? Or should your profit be dictated by a piece of software or a suit in a corporate office?


Let’s start a revolution.


A movement that’s not just about features and benefits or cars and prices—an insurrection of value against the destroyers.


The beauty of this plan is that it only requires a slight adjustment. A simple change in perspective. A change in how we look at ourselves and the role we play in this business and in the world.


If you take this seriously and want to change the future for your business, we can arm you with the battle gear that will help you thrive. Rich Dealers can help you take a completely different path.


You’ll discover a wealth of ideas and strategies to grow your business now without offering the lowest price. You’ll be introduced to dealers all around the country who have regained the lost spirit of the car business and are now having fun, feeling respected and building prosperity once again.


Jimmy Vee and Travis Miller are the nation’s leading experts on attracting customers, the co-authors of Gravitational Marketing: The Science of Attracting Customers & founders of The Rich Dealers Institute.Todiscover how your dealership can stand out and sell more without spending more sign up for a free Market Rater Market Analysis atwww.MarketRaterReport.com.






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