Play a Math Game: Are You Getting Your Share of the DMA?

Differentiate your dealership to sell more of your make than the other guys

I call this game “Calculate how many new vehicles you’ll sell.” It’s kind of a math game. The idea here is for you to figure out how many vehicles you should sell each month based on your Designated Market Area (DMA) and the make of vehicle you sell. The game is based on a seminar I attended a few years ago by Scott Toland.

Here are the assumptions of the game:

  1. Roughly 1% of the population is shopping for a vehicle at any given moment.
  2. The percentage of total vehicles sold by a particular make doesn’t change much in the short term.
  3. Your market has a particular number of dealers who sell your make of vehicle, ranging from one (you’re the only one) to many dealers who sell your make.

To demonstrate the game, I’ll use a fictitious market and population. Just plug in your market’s real numbers to play.

Brett formula

Here we go: The dealership is in a DMA called Auto Ville with a population of 500,000 people. If roughly 1% are in the market for a car, 1% equals 5,000 shoppers. Let’s say you are a Jeep dealer.

From the chart below, roughly 4.9% of the vehicles purchased are Jeeps, so 4.9% of 5,000 shoppers equals 245 Jeeps sold. The final calculation is to take 245 Jeeps divided by the number of Jeep dealers in the market: 245 Jeeps divided by 5 dealers equals 49 Jeeps.

So, if your dealership sold 49 Jeeps, you are average. If your dealership sold 72 Jeeps, you are stomping the competition by selling vehicles to the other dealerships’ customers (in other words, more than your share).

brett table

Try this game with your dealership. All you need to get is the population in your market and the number of dealers who sell your make of vehicle.

Here is why you need this game: Your goal should be to sell more of your make of vehicle than the other guys that also sell that make. How? By differentiating your dealership. Why should Jeep shoppers buy their vehicle from you instead of the other Jeep dealers?

If your advertising creates the perception that buying from you is better than buying from them, you win. Remember that other dealers that sell your make are your real competition. Your manufacturer doesn’t care which of you sells the Jeeps, as long as Jeeps sell. But you should care, and focus on selling some of the other guy’s share.

Brett Stevenson


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