Digital Dealer - December 2017 - 13

at the dealership. To be
specific, I am talking about
actual in-market buyers...
people that are qualified
to buy an automobile from
you. The data is clear, it is
not an opinion - it is fact.
Hardly anyone that buys a
car (who is qualified) goes
from dealership to dealership (physically) anymore.
That is why NADA says it's
"1.2" dealerships they visit.
Folks, we know there is no
such thing as a .2 dealership! Let me repeat that
again. An actual in-market,
qualified buyer only visits
1.2 dealerships period.
This means if you are
successful in getting them
to the dealership you will
sell them an automobile.
Obviously, this excludes if
something goes wrong or
if they are upside down on
their trade, their credit is
unqualifiable, the vehicle
is not available or they
are not realistic. But for
the most part, the vast
majority will buy from you.
You just need to get them
to your dealership for that
appointment!
NADA also says that out
of the 16,500 franchised
dealerships in the U.S., the
average dealership:
	
Delivers 96 units
	
Has 10 sales consultants
	
Has two sales managers
	
Has either and/or both
a GM or GSM
	
Has an F&I manager
	
The average sales
consultant delivers on 9.6
units per month

	
The average cost
per sales in advertising is
$640 per car sold
	
The average closing
ratio on a fresh showroom
prospect is 18-20%
	
The average dealership has approximately
480 showroom opportunities (in dealership
prospect visits)
	
That is 14-15 professionals for ONLY 480
opportunities!
On the flip side, the
average dealership
receives approximately
400 FRESH internet
and phone opportunities
per month (sometimes
just internet leads alone
are 400). Plus, there is
a "residual flow factor"
of an additional 250300 "carry-over" leads.
Realistically, the average
dealership has 650-700
REAL opportunities (both
fresh and carry over)
every single month but
they have a fraction of the
support staff as the showroom does. The average
dealership either:
	
Has those internet
and phone leads distributed to the showroom floor
and makes the sales team
follow up with all those
opportunities in addition
to all the other things they
are supposed to be doing.
	
Has a BDC or some
version of a BDC model
in their dealership but
even with some version of
a "BDC," they only have
approximately two fulltime BDC reps, or a BDC
manager and one to two

reps at most.
The result is that the
vast number of dealerships don't even convert
a true 10% of the 400
fresh opportunities, never
mind 12-15% of the total
opportunities of both the
fresh and carry-over
leads. Remember the total
opportunities per month
are 650-700. That means
the total deliveries should
be between 75-105! Yes,
that is right, if a dealership
receives 400 fresh leads
per month but has a residual flow factor of 250-300
and a REAL 650-700 opportunities to do business!
With that said, 75-100+
is more than realistic. It is
their responsibility. If not,
you are leaving money
on the table. But yet, the
vast amount of dealers
struggle to deliver 40 out
of the 400 fresh leads!
The reason this is
happening is because the
majority of dealerships
are NOT set up correctly. They are still using
traditional thinking and
strategy for both HR and
for marketing. Dealers
are still setting up for the
"traditional showroom,"
10 sales consultants, 3-4
managers to deliver the
average of 96 units.
But as we clearly have
identified, the internet
and phones are the NEW
showroom so why are
dealers still setting up
their showroom with an
antiquated strategy?
We have taken Route
4 Cars in Paramus, N.J.

from delivering 75 units
per month online to 298
units per month online at
$2,300 per copy! And we
did it by treating this department like it was a fullblown dealership. They
have 10 BDC reps, an
internet director and two
sales managers / desk
managers (one for Chrysler and one for Hyundai).
They are a self-contained
"dealership" within their
dealership. Their internet
department delivers triple
the number of units than
the average dealership.
As an example, here's a
typical month for them:
	
Start the month
approximately 900 carry-over leads on day one
of the new month
	
They receive approximately 1,600 fresh emails
and phone calls.
	
Their 10 BDC reps
make a total of approximately 29,000 outbound
calls
	
Their BDC tracks
approximately 3,300 conversations / connections
	
Their BDC makes
over 950 appointments
	
They have more than
590 appointments show
	
To deliver 298 units at
$2,300 per copy...
As you can see, their
internet, phone, BDC
department is more
accurately described as
a "follow-up" department.
That is exactly what they
mostly do. Look at the
amount of outbound calls
it takes to convert to a

D I G I TA L D E A L E R . C O M

Continued on pg. 14

DECEMBER 2017

13
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Table of Contents for the Digital Edition of Digital Dealer - December 2017
