dealer marketing magazine | selling cars in service

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Richard Bustillo for Dealer Marketing Magazine.

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Page 1: Dealer Marketing Magazine | Selling Cars In Service
Page 2: Dealer Marketing Magazine | Selling Cars In Service

Richard BustilloGeneral ManagerRick Case Honda

Rick Case Honda of Davie has been a forward-thinking and record-setting dealership for many years. They are the #1 Honda dealership in the Southeast, the #1 Honda dealership in the country for gross profit and now, thanks in part to their “One Dealership” marketing and branding strategy, they are generating multiple new revenue streams and selling hundreds of cars every month out of their service lane.When it comes to customer relationships, few dealerships can match the “opportunity is everywhere” atmosphere that keeps so many Rick Case Honda customers lining up to visit the dealership multiple times each month.

Want a haircut? Need gas? How about a free car wash? If so, all of these things as well as the usual dealership offerings are waiting for you on the Rick Case Honda campus. However, as you pass through the simple gates that line the entrance to this dealership you will immediately understand why Rick Case Honda has been so successful. This is because everywhere you look, from the light poles to the windows and from the service lane to the hang-tags tastefully displayed in every car on the lot, there are beautiful, OEM quality pieces reminding you of one consistent message – that Rick Case Honda is where you come for the “Vehicle Exchange Program.”

Page 3: Dealer Marketing Magazine | Selling Cars In Service

“Once Rick Case Honda in Davie gets a hold of a conquest Honda

owner the chances of that customer becoming a customer

for life is extremely high,”Budd Blackburn, owner of

www.TeamVelocityMarketing.com, the integrated marketing company

Rick Case Honda in Davie uses.

Here’s an example of how thisworks based on Richard’s current gross profit averages.

1. New Car Profit: From the sale of the new vehicle

2. Service RO: From the reconditioning of a low-mileage trade-in vehicle

3.Used Car Profit: From the sale of a certified pre-owned vehicle

Example Gross Profit From Vehicle Sold In Service:

JOE CASTLE, CHAIRMAN AND CEO SOCIALDEALER

So, what does any of this have to do with selling cars in service? Everything! According to Richard Bustillo, General Manager of Rick Case Honda in Davie, one of the keys to selling hundreds of cars a month out of the service lane is making it perfectly clear that upgrading to a newer vehicle is everybody’s opportunity. “It’s not just for new car shoppers or used car customers”, Bustillo says enthusiastically. “ It’s for everyone. This is a message we clearly communicate in our marketing and this is part of the culture we strive to demonstrate when a customer visits our campus.”

Based on his results, it’s easy to see why he is so excited. Since starting their program last November, Rick Case Honda has increased sales from service over 60% and although they average 105 vehicle sales per month out of their service lane, it is not uncommon to for them to deliver over 125, like they did most recently in March.

“Everyone focuses on the new car sales numbers” says Bustillo, “but they are only part of the story. The real beauty of this program is that it generates revenue for all three of our major profit centers. It increases our new car volume. It increases our service revenue because of the reconditioning required to turn a trade-in into a retail unit, and it has a huge impact on our used car business because it allows us to take in hard-to-find used cars for less than what our

competition has to pay at the auction. This allows us to make more money on every unit even though our pricing is very competitive.” As with anything worth achieving, Rick Case Honda’s success is not without effort. However, Richard is quick to point out that finding the right business partner – one that can strategically collaborate to develop a plan as well as tactically manage the mechanics of multiple complex programs so they function as a single integrated solution – is vital.

When asked why he gives so much credit to his strategic marketing partner (www.TeamVelocityMarketing.com), Richard responded, “Team Velocity takes our ideas from the whiteboard to the real world. That’s important because that’s where we make our

money. Take “Selling cars in service” for example. The concept of coming in for an oil change and leaving with a new car is exciting for our customers but it is also unfamiliar. Capturing the opportunity requires marketing, print, Point-Of-Sale materials, software and processes to all work together smoothly. Consistency is key because breakdowns in process can easily break down the customer’s confidence. We chose the company we use because they “get it” when it comes to our vision, they know how to execute and they are here with us on a regular basis helping us make things happen.”

Spend more than 5 minutes with Richard Bustillo and his team and you will see that there are a lot of things happening at Rick Case Honda of Davie. Yes, they have great facilities and yes, they have a lot of inventory. However, take a look around and you will see that what pulls all these customers to the dealership and what pulls all these great programs together is not just a building and product. It is a winning strategy, created with a proven marketing partner and executed by a talented and committed team.

SELLING CARS IN SERVICE

$2,500

$1,450

$3,900

$7,250

60%

Increase in Sales

from Service