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Dealer Marketing Magazine | Selling Cars In Service

Dec 05, 2014

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Automotive

Richard Bustillo for Dealer Marketing Magazine.

  • 1. Rick Case Honda of Daviehas been a forward-thinkingand record-setting dealershipfor many years. They arethe #1 Honda dealership inthe Southeast, the #1 Hondadealership in the countryfor gross profit and now,thanks in part to their OneDealership marketing andbranding strategy, they aregenerating multiple newrevenue streams and sellinghundreds of cars every monthout of their service lane.When it comes to customer relationships,few dealerships can match the opportunityis everywhere atmosphere that keeps somany Rick Case Honda customers lining upto visit the dealership multiple times eachmonth.Want a haircut? Need gas? How about a freecar wash? If so, all of these things as wellas the usual dealership offerings are waitingfor you on the Rick Case Honda campus.However, as you pass through the simplegates that line the entrance to this dealershipyou will immediately understand why RickCase Honda has been so successful. This isbecause everywhere you look, from the lightpoles to the windows and from the servicelane to the hang-tags tastefully displayedin every car on the lot, there are beautiful,OEM quality pieces reminding you ofone consistent message that Rick CaseHonda is where you come for the VehicleExchange Program.Richard BustilloGeneral ManagerRick Case Honda
  • 2. Once Rick Case Honda in Davie gets a hold of a conquest Honda SELLING CARS IN SERVICE owner the chances of that customer becoming a customer for life is extremely high, Budd Blackburn, owner of www.TeamVelocityMarketing.com, money. Take Selling cars in service forSo, what does any of this have to do example. The concept of coming in for an oil the integrated marketing companywith selling cars in service? Everything! Rick Case Honda in Davie uses. change and leaving with a new car is excitingAccording to Richard Bustillo, General for our customers but it is also unfamiliar.Manager of Rick Case Honda in Davie, Capturing the opportunity requires marketing,one of the keys to selling hundreds of cars print, Point-Of-Sale materials, software anda month out of the service lane is making processes to all work together smoothly.it perfectly clear that upgrading to a newer Consistency is key because breakdowns invehicle is everybodys opportunity. Its process can easily break down the customersnot just for new car shoppers or used car competition has to pay at the auction. This confidence. We chose the company we usecustomers, Bustillo says enthusiastically. allows us to make more money on every unit because they get it when it comes to ourIts for everyone. This is a message we clearly even though our pricing is very competitive. vision, they know how to execute and theycommunicate in our marketing and this is are here with us on a regular basis helping uspart of the culture we strive to demonstrate As with anything worth achieving, Rick make things happen.when a customer visits our campus. Case Hondas success is not without effort. However, Richard is quick to point out that Spend more than 5 minutes with RichardBased on his finding the right business partner one that Bustillo and his team and you will see thatresults, its easy can strategically collaborate to develop a plan there are a lot of things happening at Rickto see why he as well as tactically manage the mechanics of Case Honda of Davie. Yes, they have 60%is so excited. multiple complex programs so they function great facilities and yes, they have a lot ofSince starting ales as a single integrated solution is vital. inventory. However, take a look around nStheir program last Increa Se se i rvice and you will see that what pulls all these m When asked why he gives so much credit customers to the dealership and what pullsNovember, Rick froCase Honda has to his strategic marketing partner (www. all these great programs together is notincreased sales TeamVelocityMarketing.com), Richard just a building and product. It is a winningfrom service over 60% and although they responded, Team Velocity takes our ideas strategy, created with a proven marketingaverage 105 vehicle sales per month out of from the whiteboard to the real world. Thats partner and executed by a talented andtheir service lane, it is not uncommon to for important because thats where we make our committed team.them to deliver over 125, like they did mostrecently in March. Everyone focuses on the new car salesnumbers says Bustillo, but they are onlypart of the story. The real beauty of thisprogram is that it generates revenue for allthree of our major profit centers. It increasesour new car volume. It increases our servicerevenue because of the reconditioningrequired to turn a trade-in into a retailunit, and it has a huge impact on our usedcar business because it allows us to take inhard-to-find used cars for less than what our Heres an example of how this works based on Richards current gross profit averages. 1.New Car Profit: $2,500 From the sale of the new vehicle 2.Service RO: JOE CASTLE, CHAIRMAN AND CEO From the reconditioning of SOCIALDEALER a low-mileage trade-in vehicle $1,450 3.Used Car Profit: From the sale of a certified pre-owned vehicle $3,900 Example Gross Profit From Vehicle Sold In Service: $7,250
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