Car Sales

Activities that generate new and used car sales

How will EV law changes affect your showroom traffic?

In some ways it a good thing. Pushing back the time line for the mandatory ‘turning off’ of ICE engine cars until 2035.

I always thought 2030 was a bit optimistic, but to be fair car manufacturers grabbed it by the scruff of the neck, invested huge amounts of money and looked like they were on target to achieve it.

But the Government have now moved the goal posts.

Is buying a car a toss of the coin at the moment. Do you buy petrol, EV or a hybrid. Think of the poor soul that is trying to sell them.

Which will definitely affect customer confidence. Is this likely to affect the number of people enquiring about your cars?

Over the last couple of months we have had BMW make a couple of sweeping statements regarding the Electric Mini brand. First, it was being moved to China. With only ICE engine models being made in Cowley. Then 2 weeks ago it announced that the electric models would also be made in Cowley.

This is great news for the Oxfordshire site.

But the enquiry levels at the time certainly didn’t reflect that, with an immediate dip in showroom enquiries just after both events.

It looks like the buying public are more concerned about knowing exactly what is happening, slightly less than where the car is made. (which is a little sad).

I suspect that this weeks announcement is likely to worry the customer base even further. Already listening to half the motoring press criticising the move to electric and emphasising the potential financial costs to early adopters. Will the second wave of EV buyers be affected. Unfortunately I think so.

During our enquiry follow up and lost sale telemarketing programmes we have seen a number of customers site that exact reason “I’m unsure about EV, so I’m going to wait a year” and “I decided to buy an old petrol / diesel model to get me through the next couple of years”

Neither response helps the retailer out. Especially if you are struggling for sensibly priced used stock and the manufacturer has given you a solid EV target.

I assume that the government know all of this. The car industry is professional, if the world said – “We want all cars to run on Rape Seed Oil by August 1st”, the motor trade is likely to swear for 10 minutes and then ask “What time on the 1st?”

So it is probably the Government itself that is behind with its forced introduction – we may have the cars but not the infrastructure, and may be wavering in the face of new advances for Hydrogen models. And yet again the Motor Trade is having to pay for it.

Disappointing doesn’t really cover it.

#EV, #motortrade, #lostsales

One Step Forward, Two Steps Back.

Had quite a sobering reminder this week.

Like most companies we send out email updates, newsletters etc to former customers / collegues etc. We aren’t a retail business, instead a business consultancy within the Motor Trade so my own subscriber list is thousands not millions.

By accident, our admin team sent out this weeks “Have a good September 1st” email, but instead of using the latest subscriber list they picked my own list from Spring 2020.

People looking for work and companies hiring.

58% of my former colleagues and contacts are no longer there. Some 4,500 senior managers in the Motor Trade.

A lot of statistics will tell you that people move every 4-5 years, we have had a pandemic, blah blah. But mainly that is to sell the “updated industry list” they are trying to push.

I know people change jobs, but the Motor Trade is quite a family – sometimes a pretty dysfunctional family -, you might move jobs, but often with the same retailer, or certainly within the same group. You have just moved branch. Or quite commonly, returned to a group you were with originally.

So 58% gone, seeing it in one go is quite sobering. I hadn’t noticed it as we update our database and subscriber lists on a rolling basis, happily we have the telesales staff that can call the bounced emails to update the current managers details each week.

If you’re marketing cars and vans to local business and fleet buyers then your database probably went through the same changes as mine and need to have a chat with our data team to see how we can help. They have been making B2B marketing and research calls for over 25 years, and know how to do it.

I know every time they update my database they generate new opportunities for me to call and introduce the marketing services of Cymark. If we can be of help, drop me an email or DM.

#B2B, #telemarketing, #teleresearch

Candlelighters – Unashamed plug and a Fire Engine

Here in the UK, I am sure many of you are aware of the Candlelighters Charity for Children with Cancer. https://www.candlelighters.org.uk

They have run a couple of great events this summer and I just wanted to say – if you get the opportunity pop along and support them. Worldwide there are similar charities and they all deserve our support.

The Fire Engine?

At a recent event we were able to book a seat in a fire engine and given a ride around an old airfield test track. Many of us, especially in the Motor Trade are familiar with performance cars from every brand and have been lucky enough to experience a pro-driver throwing a supercar around a track while we grin manically from the passenger seat.

If you haven’t tried the Fire Engine, your missing something!

The “it’s not going to make it, it’s not going to make it”, is heightened to an unprecedented level when the 8m long, 11 tonne vehicle your in is hurtling towards a 90 degree corner and the driver is showing no intention of slowing down. Impressive just doesn’t cover it.

And Impressive is one thing I can say about the kids at the event. No one should have to cope with Cancer, least of all children. They are some of the bravest people I have ever met. Send them some money!

Summer – Flying High or feeling the dip?

How has your summer been in the Motor Trade?

Depending upon the franchise and the available model mix from stock we are seeing a diverse set of retailer results. All driven by the level of enquiries.

Should we expect it? The summer months were always a big dip in the years enquiries, but over the past few years the pandemic has smoothed out a lot of the peaks and troughs.

Overall the picture is good. This August we are seeing the level of enquiries only slightly lower than the peak of 2021. The agency model sites and the ‘electric only at the moment’ brands seem to be fairing the worst, but the levels are still strong right across the board.

On the marketing side, the push for new car events has returned as we try to drive customers into the showroom and encourage them to start a new customer journey, particularly if September registrations are looking weak.

If you can plan the DM in advance and schedule any calls at least 10 days before the event, you are likely to have some success. There are some tricks of the trade to ensure provisional bookings turn up, but at the moment if the offer is good or the finance rate attractive enough, event marketing calls are creating strong appointments.

96 sales from our last event is not to be sneezed at. (Discounted call rate of just £1.65 per record)

#eventcalls, #customerjourney, #showroom

Mercedes – Spinning like a top!

Ok, my strap line is a little bit more sympathetic than much of the press – “The new Mercedes EQG can turn like a tank”. I’m sure #Mercedes are pleased with that one.

They are referring to the latest all electric 4×4 offering from the German brand which will have 4 electric motors and will allow those on the right of the car to turn in the opposite direction to those on the left. Spinning the car around. . . . like a top.

It all goes to show that Tesla was right – you need a new gimmick to make a new model interesting today – If you want to drive more potential customers into the sales funnel you need to stand out.

#mercedes #G-Turn #salesfunnel #cymark

EV Batteries – It’s your money!

I read today that the latest EV battery manufacturing plant is to be built in France and not in the UK despite millions of pounds of subsidies offered by the Government. Apparently France signed up for 1.6bn.

The new plant is for Stellantis and Mercedes, and I can’t really blame them for taking the money.

Line of electrics vehicles next to a line of EV batteries before they are fitted to the cars

When I started this post I was disappointed – let’s hear it for British manufacturing and British jobs – but then I thought about it. If that money was mine, which I suppose government money is, would I want to invest in a factory making batteries?

The word is ‘electric’s the future.’ But Germany just argued with Brussels to allow for e-fuels and I notice that the German government didn’t put their hand in their pocket.

Now I like electric. It makes sense, in a lot of cases. But I also like hydrogen and I like e-fuels.

So I’m not 100% sure I would ask the government to hand over 1.6bn pounds of ‘our money’ to what is probably a non-UK company anyway.

Would you?

#evehicles #evbatteries #stellantis #mercedes #britishmanufacturing

Despite lockdown. Still surprising.

I ‘had’ given up being surprised by customers within the Motor Trade. But this autumn is really something.

I think most of us are hoping that this positive sales bubble won’t burst, despite lockdowns, social distancing and localised tiers.

But in 32 years in the trade, 25 years with Cymark I have absolutely no idea what is driving customers in 2020.

I am sure I could come up with a load of marketing waffle, to sound coherent, but in reality I hear that many professional versions of – ‘this is what is happening’, that I have given up trying to second guess the market.

For example –

For years, Cymark has been making bespoke event / appointment calls to drive customers into the showroom. Every retailer does it. It’s a good, reliable source of business.

This November we geared up to make a number of calls for a particular manufacturers used car event, scheduled for the 6-9th November. Calls from the 2nd to the 6th.

Then, as we all know, Lockdown 2 arrived, effectively closing the majority of showrooms and access to the stock.

The dealers were out of pocket, having committed to taking extra stock from the brand.
We were out of pocket having scheduled everyone to make the calls.

But COVID-19 is COVID-19 and it is better to be safe.

Now the interesting part –

Normally, when we make appointment calls we have a pretty high hit rate and expect to make around 12% showroom appointments. Give or take, we get through to around 75-80% of the customers and get about 12% in through the door. Don’t over sell it, we need these people to turn up!

But, a couple of sites that decided to push ahead with the used event anyway, despite the lockdown.

“We can try virtual. Ask the customer for a time when the sales exec’ can call them to talk to them about a particular car. Then we can do Click and Collect. . . .”

So, we did. The deal on offer was good, but probably no more so than before March, but we were getting much more interest from customers.

Appointments / Time for a call – UP from 12% to 16% across sites.

PLUS – Possible interest and wanted to talk to a sales exec anyway – Another 6%

And these customers bought. With the new lockdown the retailers were able to stretch their event offer window slightly, and the customers put their hands in their pockets.

We were expecting a little kickback when we made the calls, but they were all made at sensible times of the day, and with as little pressure as possible. Just polite and professional.

The customers are easier to chat to, sure they wanted to speak about the summer and COVID in general, but as long as you aren’t chasing a ‘must speak to 12 customers per hour’ target and have the time it works. But then all our calls are like that. No pressure. Just professional.

I hope this continues. Retailer staff are back into furlough, but sites are getting lots of enquiries. Not just from the event calls outlined above, but normal telephone / manufacturer leads, our enquiry follow-up calls and local business B2B prospecting calls are showing great results.

Customers want to buy your cars!

Long may it continue.

Long may it keep surprising me.

A great autumn. Let’s not miss any.

The Motor Trade has been having a great autumn, sales are strong and profits are up year on year in many sites. Lets make sure we convert as many of those enquiries as possible. Now. While the market is strong.

A long time ago I made my living selling Ford Escorts and Sierra’s. But I and virtually every sales exec’ I worked with knew exactly where we wanted to be.

We wanted to be in the Porsche showroom selling 911’s.

As far as we were concerned Porsche salesman did absolutely nothing. The customers walked in and if they had the money, they ordered a car. “You would like a test drive? Have you got your cheque book?”

I know the reality was slightly different, but how many times have we heard in the past few years – “Oh they are just order takers now, they don’t do any real selling.”

I am sure a large part of this is the older generation looking back with rose tinted glasses, and there is certainly more paperwork, professionalism, and legal hoops to jump through, but the sentiment is certainly still with us.

Take this summer. A bloody awful summer. But again, the message I am getting back from our dealers is that it has been the best Autumn in years. One Volvo site confirmed that it has been the best September they have EVER had.

I have lost count of the number of dealerships that have told me that they are ahead of 2019 budget year on year. Which is fantastic. And doesn’t look like easing up yet.

It’s difficult to argue with the numbers. Sales are up. Admittedly still more on the used side, but at least the profit is really good on used.

The reason for my comparison in the opening couple of paragraphs is to ask the question – “Are we being order takers at the moment?”

Our showrooms are certainly enquiry rich, and with retailers running very lean to keep costs down, the sales exec’s are doing what any sales exec’ would do when there are only so many hours in the day. They cherry pick.

Which is great. Sort of. We are certainly selling cars, so this is definitely not a complaint.

But a lot more customers are saying that their enquiry hasn’t been followed up. To be fair, perhaps the sales exec’ has looked at both the enquiry and the customer and decided that A) the car is to hard to find, B) there is not enough money in the deal or C) It’s a new car, forward order, that won’t pay him any commission for 5 months.

As a company, for 25 years, Cymark has followed up lost sale records to ensure that customers that are actually still looking to buy a car and flipped back into the showroom.

With as much information about what, when and how serious they are.

For 25 years these customers have been buying cars and generating much more income than our own nominal costs. (that and we are good at it).

But today, how can we fault a sales exec that is flat out and hitting his numbers. He has enough enquiries to go at.

As one Sales Director said recently.

“Guy. In the showroom I have two execs’ off, self-isolating, you are sending these customers back to us that are still wanting to buy a car from us. But I don’t have anyone to give the record to!”

But I would still have to ask, “Wouldn’t you want to know?”

I know time is the problem at the moment. Sales exec’s and sales managers are running around left and right trying to sort out orders, click and collect hand overs and virtual sales videos. But I still go back to my Ford days –

“I can sell these Fiesta’s all day long. But they only bring in £100. Or I can convert that Cosworth enquiry and make £2,000.”

I know which one my sales manager would want me to follow up this afternoon.

Good luck everyone. At least this lockdown seems more manageable than the last.

CYMARK