Find Your Unique Selling Proposition and Quit Racing to the Bottom on Price
In this new world of automotive dealerships and customers demanding more for their money, your dealership’s success depends on more than just selling your share of cars in your defined marketing area.
Are you still focused on selling price alone? With the competition trying to steal some of your market share, and when profit margins are tight, success depends on your dealership getting more than your share.
Let’s face it, all dealerships want more than their share, right? Don’t you?
As you probably know, when the sales process reaches the bottom of the sales funnel, consumers have already decided what make and model of vehicle they want to buy.
In addition, they have also extensively shopped price. At that point, the decision comes down to either “the best price,” or what dealership offers the customer something unique — something “more” . . . or simply “the best value.” Since there is nothing particularly unique or different between two (or more) cars of the same make and model, perhaps your dealership needs to offer something impressive over and above what the other dealer offers — something beyond the product and price.
This “unique selling proposition” (USP) can be the secret to success and create a large increase in business. Some of the most successful dealerships in America feature a strong USP, and have developed an all-encompassing culture around it.
Your USP should be part of the sales and F&I departments’ focus, and impact your parts and service business. Dealership commitment to your USP can take the place of getting the lowest price in the eyes of the consumer.
Profit margin and sales growth will soon follow. Another great benefit to a dealership that is dedicated to its USP is the ability to expand your car-selling boundaries geographically. When your dealership’s USP appeals to consumers all across the country, your sales will then reach outside your normal selling area, and you will begin to sell to car buyers in your competitor’s areas.
People will travel to get more. Some of the most successful USPs include (but are not limited to): lifetime powertrain warranties included on all qualifying new and pre-owned vehicles, oil changes for life (on qualifying vehicles with in your franchise line), and even home pick-up and delivery of vehicles for service.
One important key to a great USP is simply stated: It needs to be based on a “win-win” philosophy for you and your customer. No gimmicks and no gotchas! The world is changing.
Today’s automobile shoppers demand more than just the product at a desirable price. Contrary to the opinion of some, “price” is oftentimes little more than a defense, a reflex objection by the customer.
No one is using Amazon because it offers the lowest price . . . and it is up almost 2000% over the past two years. Amazon is growing due to convenience for customers. Kind of makes you go, “Huuuummm?” — doesn’t it? Dealerships all over the country are enjoying higher sales gross profits (front and back), higher parts and service profits (warranty, customer pay, and internal), higher CSI, a reduction on employee turnover (due to the culture change), and a much higher customer retention by employing a USP.
If you want to get out of that “Price Race to the Bottom” — a race you cannot win — contact us and we will give you some suggestions that you can start employing in your dealership the very same day.
You have nothing to lose by finding out how to change your dealership culture while increasing your profitability, improving CSI, and destroying employee turnover, so please have a look at Binary Automotive Solutions’ video at www.DontRaceToTheBottom.com, then email or call James Binkley, CEO, for more information: [email protected] or 630-258-3439.