Radio Sales Café

RSC,
 
This Week's Sales Tip: The Grand Poobah business category for Broadcast Sales has always been local Auto Dealers. Just today, Inside Radio reports $2 Billion was spent on radio in 2011, accounting for 11% of total industry revenue. Let's take a look at Departments within a dealership and the key people you need to get to know. 
  
Auto Dealers are almost always owned by a local character. Expect them to be inaccessible and often near impossible to get any quality selling time with. There are exceptions to the rule but most principals are a very difficult bunch. General Managers and Sales Managers will make the advertising decisions if you bring them creative ideas that will increase customer traffic ... They want warm bodies and they want them now.    
 
Don't overlook the Used Car Manager and the Internet Sales Manager. They have their own seperate budgets and they are substantial. The Service Manager, Parts Manager and the HR Managers all control their own budgets, too. Get to know all the key players at every dealership on your list.
 
Maximize your Auto Dealer accounts and dig deep. Each Department Manager is a potential revenue stream ... Happy Fishing!

Jingle Jim,

Lets dig a little deeper into selling a Dealership.  This is 'the' biggest potential for revenue in my market.  I've gotten very good at the auto lingo.  I've created strong relationships with the salesman, gatekeeper, Sales Managers, General Managers and speak directly to most of the principals.  I know every market is different, but the average gross on a vehicle in my market is $2600.  That's an average of New and Used sales.  NADA says that the average dealership will spend about 1 percent of it's total monthly sales on advertsing.  And radio gets about 15.5% of that each month.  Are you getting 15% of your dealers budget? 

 

Lets use my numbers and say that a dealership is selling 100 cars at a 2 to 1 used vs new.  Average sale on a used vehicle is about $17,000 and new about $28,000.  That would be roughly $2 million in total sales equaling $20,000 in ad budget and then that means that radio should get $3,100 of that $20,000.

I like to use the gross per unit instead.  In my market the average gross is $2,600 per vehicle.  And I just ask for 3 or 4 cars per month.  Meaning I want $7,800 to $10,400 per month in advertising.  I know that I can sell them 3 or 4 cars....easy! 

 

Let's talk more about this category!

 

Sonny

 

I came across the property “Nissan Patrol” on http://www.radiospicefm.com/ which was a remote titled “Nissan Patrol Challenge” done at the Nissan dealership in Dubai.

It is a simple concept to create buzz and footfalls at the dealership. The radio station hauled its DJs to the dealership and they had to pull the Nissan using ropes. DJs formed teams and were assisted by loyal listeners of the station to help their favorite RJ win. Videos from the event were put up on the website and am sure would have created hype and talking points within the local community.

However, you guys need to evaluate the idea on its own merit keeping in mind your local market.

This was just a pointer from a different market.