The global race for the most luxury vehicle sales in 2015 could not be closer. According to Automotive News, the most recent count is
BMW 1.56 Million
Mercedes-Benz 1.53 Million
Audi 1.49 Million
The positive publicity associated with winning the global sales crown is significant and will benefit all BMW dealers to some degree. The question is how best to maximize store sales and the resulting contribution to the BMW’s global sales while also maximizing profitability. No one, including BMW, is eager to harm dealer profits and brand integrity by “buying the crown” with deep discounts at the end of the year.
National and regional incentives may be applied, and will certainly help, but incentives are often a dull instrument. A lease special on 3 Series vehicles may be of tremendous benefit to a dealer with excess supply of that model, but it provides little assistance to a dealer with too few 3 Series vehicles and too many X5s. Each individual dealer can benefit the brand the most by doing what is in their own best interest, reaching out to shoppers considering the vehicles or vehicle categories the dealer most needs to sell.
The free, downloadable tool accompanying this article makes it easy for anyone to quickly identify which models and categories make the most sense for the dealership to target. With advanced digital advertising, it is possible today to tailor advertising to the shoppers interested in the vehicles the dealership most needs to sell.
Currently, BMW dealers average a 36 day supply of vehicles, but some dealers have far more than this and some far less. A dealer with an excess supply of vehicles has more need to aggressively attract more shoppers to the website and the store. No one wants to go into a traditionally slow sales month like January with excess inventory.
Even dealers with low overall inventories need to perform this same simple analysis. A dealer may only have 30 days supply of inventory, but may have far more for some models and far less for others. Which models require the most attention is much different for one dealer than is the case for others. Timing matters as well. The proper target for a given dealership might be 5 Series in one month and X3s in another.
Sales crowns are not won by attracting thousands of additional site visitors for a model or group of vehicles already in short supply. A dealer’s digital advertising can and should be pinpointed to attract the exact shoppers needed to purchase the vehicles in excess supply. This is the surest path to higher overall sales and higher overall gross profit. These trends can be identified with ample time to do the right thing and balance traffic to the inventory at hand.
BMW dealers need a customized tool to help them identify which models to target traffic for. That simple tool can be downloaded here. Simply fill the yellow boxes with the sales history you already know and the current inventory information that is close at hand or easily found on your BMW certified website. The green cells populate automatically for instant analysis. Sample data is also provided along with tips for better analysis and proper execution.