How Dealers Can Succeed In Selling New Car Pre-Order
In the past year, new car pre-ordering has become more common at dealerships, regardless of whether you’re just starting to learn how to properly and successfully sell it or you’ve been doing it rather successfully for a while.
As we all know, new car pre-order is now a reality and a way of doing business as a result of macroeconomic difficulties, changes in consumer purchasing habits, and persistent inventory shortages in our industry. Over the past year, dealers and brands have included pre-order into their routine business operations, new car sales focus, and lead strategy.
However, it’s crucial to consider what your present pre-order plan is for new cars. Does that approach genuinely increase sales? Are you using your ordering process to inform and reach the correct customers? Are you advertising and selling to those who would benefit from placing a new car pre-order with your dealership as opposed to one from a competitor? Now that you know your new car pre-order plan is here to stay, it’s time to review and redefine it.
It’s time to revise your pre-order approach for a new car.
The good news first… Consumers are willing to continue paying MSRP without hesitation, according to statistics from SimpSocial, and are also willing to wait for a new car pre-order if the expectations are clear. Your clients are aware of the inventory deficit our business is experiencing as a result of the chip scarcity. But many are unaware of the pre-order procedure, including how to go about it and what to anticipate.
You’ll learn new approaches to not only successfully develop and implement a revenue-driving pre-order strategy, but also to capture the attention of your ideal customer, increase leads, and maintain the loyalty of current customers to you and your brand by taking a closer look at how your dealership markets, sells, and runs new car pre-order.
Promote the person, not the vehicle.
In the past, marketing to the exact car that was parked on your lot was everything. You might draw attention to a particular car and possibly provide it extra incentives both internally and externally if it had been sitting for a longer period of time than another. It was okay when there was enough of inventory since you concentrated on that car rather than the individual who would eventually purchase it.
But in the modern era, especially when it comes to pre-ordering a new car, it’s crucial that you advertise to the individual rather than the car you may or may not have on your lot.
You can appeal to a person’s goals, needs, and preferences by marketing to them. Additionally, since the majority of purchases are now made online, you’ll be able to target clients and work with them throughout the process.
When you make sure they receive the appropriate messaging at the appropriate time and enter your dealership as a result of your showing that you understood their requirements and wants, you have seized an opportunity. In the end, you gave them more than just a car by giving them something else—an experience—instead of just the car.
Additionally, even if you don’t have the automobile in stock, which is a reality for the majority of dealers today, they will still be interested in you and want to do business with you. You’ll make a sale if you give them the correct experience and demonstrate that you know what they want and are looking for.
the dangers you can prevent
Let’s discuss some of the advantages your dealership will experience as we add more layers to the potential of new car pre-order and lead techniques. or, more specifically, may avoid in this instance!
The typical risk of floor planning is one expense you can avoid by concentrating on new car lead methods like pre-ordering. Most dealers are no longer concerned about the new vehicles remaining on their lots for 120 days. Many people have really reduced that time in half by using effective pre-order techniques.
As a result, dealers will be able to increase their profit margins because they won’t need to plan as much for and spend as many floor planning expenses as they did previously. This could help you save thousands (and thousands!) in addition to boosting your profitability and the cash flow of the dealership.
Insurance Risk Costs: Some of the insurance risks you generally carry by just having inventory on your lot are additional dangers you’ll avoid by concentrating on a new car pre-order lead approach. Once more, your dealership bears this cost and risk in addition to fees that reduce your revenues. Pre-ordering new cars and using leads can enhance your profit margins while lowering your insurance risk expenses.
Consumers can obtain what they want while saving money.
Now, some more encouraging news based on surveys and information gathered by SimpSocial about consumers’ behavior and general expectations versus actual results… Customers adore the fact that when they pre-order, they receive exactly what they want and can spend or save money depending on the qualities that are important to them.
Implement informative advertising on the pre-order process for new cars.
It’s crucial to remember to use instructional marketing while creating your new automobile pre-order plan. You should explain exactly how new automobile pre-ordering works to the customer and also demonstrate it for them. Additionally, you should preferably educate your entire staff on the benefits of this procedure and how your dealership handles it in order to stand out from the competition.
Remember that for the majority of car buyers, pre-ordering a new vehicle is a relatively new concept. To ensure a successful and easy transaction, it’s critical and crucial to inform your consumer on how and what to do when thinking about pre-ordering, more specifically on how that is done at your dealership with your brand.
In reviewing your new car pre-order strategy, consider how your dealership is informing customers by asking yourself the following questions:
What methods do you currently use to inform your present, past, and potential consumers about new car pre-orders?
Do you expressly promote the fact that you provide new car pre-orders, and how do you highlight how your dealership differs from those of your rivals?
Do you have a video or series of films that are simple for your consumers to view that outline the delivery procedure as well as the steps one by one so they can continue to refer to it whenever they need to?
Do you have any marketing materials that compare and contrast typical new car purchases with pre-orders for new cars overall? What are the benefits and differences?
Does your sales staff describe the processes involved in placing an order, including what the customer will do online and in person, so they are aware of how and when to proceed to the next step?
Do you use pre-scheduled automated emails, retargeting online, or calendar touch points to stay in front of your customer at every stage of the ordering and waiting processes?
Make sure you go above and beyond when it comes to explaining what to anticipate. You should also stand out as a dealer who cares about making customers feel at ease and is prepared to inform and assist them during the full pre-order process.
a more lucrative approach to conduct business
New car pre-orders and the leads they can create for you should be the focus of your investment and strategy right away because, if you don’t, one of your rivals will develop a top-down plan for their dealership around them. Get in front of your prospective client and show that you can help them through a process that is probably new to them.
New automobile pre-orders, in the opinion of our analysts and others, are here to stay. Sure, some dealers may occasionally flood the market with inventory based on allocations, but over the long run, pre-ordering can be a much more effective tactic. Overall, it’s a more lucrative way for manufacturers and dealerships to conduct business.
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