Archive for August, 2016

thinking

Would your car dealership earn a higher ROI doing “Test A” that is 10,000 pieces of direct mail for $5,000 or “Test B,” that is 5,000 pieces of Multichannel digital/direct mail for $10,000?

Obviously the less expensive mailer (Test A) with more pieces is going to be a “one channel only” direct mail piece.

The bigger investment (Test B) mailer will include several channels or as we call it “Multichannel digital/direct mail event.”

The closing ratio and an honest evaluation of your current management/salespeople is key.

Test A is going to get you more actual traffic and you will be relying more on your salespeople/management than the piece.

Test B allows you to lean heavier on the digital/direct mail technology rather than your salespeople/management. (Nothing wrong with that, think about your teams level of “event experience.” )

Unless your salespeople/management is so experienced with events, they could be a crew from one of these “staffed event companies,” you will sell more vehicles with Test B than Test A every time and twice on Sundays!

So let’s look at ROI:

Test A – 10,000 pieces for $5,000 one channel: 100 ups close 10% or 10 units. Let’s call it $3,000 a copy. (I know yours is higher but for arguments sake)   That’s $30,000 minus $5,000 investment for $25,000 profit.

Test B – 5,000 piece multichannel digital and direct mail event for $10,000. Traffic is traditionally a little lower. So call it 75 ups/replies. Closing ratio can double so close 20% or 15 units. Take 15 units x $3,000 a copy is $45,000. That’s $45,000 minus $10,000 investment for $35,000 profit.

Summary – Test B earns $10,000 more but let’s “put all the cars on the table.” The closing rations here are just estimates. Your actual event numbers could double these extremely conservative estimates.

Plus, we didn’t factor in the money you will earn from great trades or the fact that “Test B” uses only half the market of “Test A” so you can hit an additional 5,000 car buyers for another great multichannel digital/direct mail marketing event the next month without going back to the same people!

I will close with this. More times than not, “Test A” makes printers richer. “Test B” makes you richer…

My time is up, you been great! Good selling-

Todd Vowell

 

highladder

When I was young, working my way through college, a friend of mine hired me to pick peaches and paid 50 cents a bucket. The bucket was a metal container with a strap you wore around your neck so you had two hands free to hit each tree.

I remember the first day well. With my first tree, I got like four or five buckets out that bad boy in 105 degree weather. I can still feel the scratchy peach fuse mixed with sweat on the back of my neck.

So I said, “OK boss, first tree done which tree is next?” He looked at me and said, “you sure you got all the peaches?” I said yes, absolutely. He just smiled, took my bucket and went over to the tree I just stripped of ALL PEACHES and proceeded to take me to school. I stood there and watched him get another 20 buckets of peaches off that tree I was sure had nothing left.

So yes, when we talk about salespeople and how most only get the low hanging fruit, it goes much further than just the optics. Getting more customers is an art form just like picking peaches. You have to have instinct, passion, tools, creativity and you have to be willing to get on a ladder and really do some hard work. (Work most are not willing to do)

Anyone can pick low hanging fruit. The best salespeople in the country no matter if its cars, real estate, direct mail, or even peaches, are the ones that really take it serious, don’t give up, and are just relentless. It becomes more than a job or even career. Selling becomes the DNA of who you are.

The best peaches (or customers) are the one’s way up in the tree, hidden behind branches and leaves. Those are the most valuable because they are hard to find and most folks have missed them, didn’t see them, didn’t even look. (They just walked on by, grabbed some low hanging, and kept going.)  Don’t let that be you…

Also, don’t let the Internet and all the new ways to reach customers fool you. Sales is still a people business. It is still all about building relationships based on trust. If customers trust you, and like you, they will do business with you. If they don’t then they won’t.

The Internet and many digital channels are just extra tools to help you (find all the peachpeaches) earn that much-needed trust in order to build the relationship. Use them all, the more the merrier!  Do that and life will be “peachie” I guarantee it! My time is up, you been great. Good selling –

Todd Vowell