Automotive Marketing Facts

Automotive Marketing Facts: The Dealer Response to OEM Mandates

By September 8, 2015 No Comments
Automotive Marketing Facts: The Dealer Response to OEM Mandates

The Dealer Response to OEM Mandates

A friend of mine asked the question, are OEM mandates bad? I think the better question is what an individual dealer should do in response to the OEM program they face. Some dealers find the OEM programs for websites and digital marketing offer the solutions they would have chosen anyway. In other cases, the consideration set of vendor is one, and a bad one at that. You have to estimate the value of breaking out, like adding a non-mandated site, versus optimizing within the guidelines. With website features increasing, the gap between a great site and a mediocre site is getting bigger. At the same time, the cost of an additional site is lower today than it was even six or eight months ago. At the end of the day, the OEM, investors, lenders, and employees are measuring the value of the store primarily based on sales. The best response is generally the one that yields the most sales, and that’s a fact.