Wednesday, July 13, 2011

That Pesky Groupon Model Surfaces for Auto Sales . . .

Here we finally have a car dealership using Groupon for CAR DISCOUNTS (Cadillac and Groupon).  People can purchase an amount off the car later for buying a coupon for a lesser amount now.

I tried to get four separate dealers to try this last year. I'll get the same push-back here, perhaps, as I did from them, but this guy quoted in the article gets it:  It's not a coupon, it's ADVERTISING.

$199 buys you $500 off a car purchased this year.  The customer commits to buying from you by spending money NOW, and you apply this as an advertising expense.  Really, how much do most of you spend now per vechicle to get the phone to ring, leads/emails to come in, and to get walk-in traffic?

It's going just like pricing did:  We used to hold all the cards for brochures and price, and some of us played games in the newspaper.  Nowadays, if you're asked a price in a lead, you answer with a price (as well with calls to action and enticements, but you send a price).  THAT began when the first dealer sent a price and got business when others did not.  It will be the same here, if this works out, and I think it will.  It's just the first.

by Keith Shetterly,
Copyright 2011, All Rights Reserved.