Fee system revs up auto revenue Dennis Wagner - Helper of Mankind - Marketing,Sales,Leadership

Dennis Wagner - Helper of Mankind - Marketing,Sales,Leadership

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Fee system revs up auto revenue 

Dealers enjoy better responses, leads, less spam

BY SHARON HILL                             

Page 14 Vol. 16 No. 5 Classified Intelligence Report

Since Craigslist began charging U.S. auto dealers $5 per listing, revenue has soared and the site delivers better results.

Craigslist will generate automotive revenue of $53.7 million this year in the cities canvassed by the AIM Group. That’s up one-third from 2014. We estimate another $20 million in additional markets.

Not all dealers stuck with Craigslist once they had to pay, but we’ve heard those who did are finding better responses, higher quality leads and a positive return on investment.

Matthew Brown, founder of the LotVantage classified listing application, talked with the AIM Group one month after fees began in November 2013. He predicted the charges would “legitimize Craigslist and clean up the mess of spammers, duplicate vehicles and traffic leachers.”

He was right.

“Fees definitely changed the [automotive] industry on Craigslist overnight,” Brown told us recently. “Many dealers initially reacted by sitting on the sidelines. That was great for those who didn’t, because the amount of inventory got annihilated. When listings were free, 15 to 20 minutes after posting, your ad became two to three pages deep because of spam and the placement of fake vehicles up to 25 times a day. A disreputable dealer’s inventory of 50 vehicles became a thousand listings. With the introduction of fees, those companies had a rude awakening and disappeared.”

Page 15 Vol. 16 No. 5 Classified Intelligence Report

Dennis Wagner, 26-year CEO of Denny’s Auto Sales in Lexington, Ky. and founder of training firm All Things Automotive Inc., agreed.

“When listings were free, ghost posters – fake listings – were everywhere,” Wagner told us. “They would bury your inventory. No one would ever see it. While there is still some of that, Craigslist finds it pretty quickly. And, while many dealers try to sneak their inventory in as private- party listings Craigslist discovers that, too. They regulate it pretty heavily now.”

Brown believes that most legitimate dealers are back advertising on Craigslist. That’s because Craigslist works for them, and LotVantage has proven that.

“We have metrics, and a phone number that tracks the number of leads for an ad,” he said. “We’re finding sales success at the rate of one good lead per ad, so they’re paying a low $5 for each Craigslist lead.”

Wagner said that many dealers have returned to Craigslist because it made economic sense. "Third-party leads cost about $20,” he said.

Wagner has actually increased his Craigslist advertising since the fees began. “My ROI is absolutely positive now,” he said. “The lead quality has gotten a little better as well.”

Brown cautioned that success depends on moderate vehicle value, with asking prices of $15,000 or less bringing the best results.

“I wouldn’t want to tell a new Ferrari dealer that Craigslist is the place to put his money,” he said. “But for the mass-manufacturer dealer with pre-owned inventory, Craigslist can be great.”

Wagner doesn’t rule out advertising an occasional high-end vehicle, especially if it’s a hard- to-find car or truck, or if the dealer offers sub-prime financing.

“If you offer financing you can sell a $50,000 car on Craigslist, though you will probably get twice the response by advertising a $6,000 vehicle,” he said.

Dennis Wagner of All Things Automotive said Craigslist's fees

for U.S. auto dealers has eliminated most fake listings.

© 2015 Advanced Interactive Media Group LLC info@aimgroup.com +1-407-788-2780

Are your salespeople truly ready for Social Selling? Helper of Mankind - Marketing and More Lexington, Ky

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If I could give salespeople training in one thing and one thing only, I would pick any one of the ten things on this list before I would train them on "social selling." GASP.. I know, I know.. Let Me Explain! That does not mean I don't believe in "social selling", because I absolutely do, but todays salespeople need to master the basics of selling before advancing to the Expert Level. Here are ten important things sales professionals need to train on in no particular order.

 

1. How to Set Appointments: There isn’t anything higher on this list because answering sales calls / cold calling and prospecting is what would improve most salespeople’s results faster than anything else. Phone Skills must be Great! Good will no longer suffice. Dialing for dollars says it all.

2. Overcoming Objections: No matter how good you are, without the language and experience to deal with objections, you aren’t creating a win for your customer. If you let them win, they give you an opportunity. That's a win-win! Master your craft and approach each objection in an open manner. Help your customer and they will be happy.

3. How to Differentiate Yourself From Others: I’ve never asked a salesperson what makes their company different and gotten an exact response, even when their manager believes they know. They don't. We cannot blame our sales team for not knowing, because we didn't properly train them. I think this is an easy one. Think about the things customers complain about, and do the exaxct opposite. It is okay to have fun. Be different.

4. How to Negotiate: Most salespeople crumble at the first question about price. I’d teach them to negotiate based on value. Price is what something costs, Value is the products perceived worth, and these numbers are rarely the same. I have always lived by a simple rule of thumb that works well. If the product costs ten thousand dollars, build twenty thousand dollars in value. The customer perceives it's a good deal when value exceeds price.

5. How to Understand What Makes an Opportunity: Unless your client agrees to pursue change with you, you don’t have an opportunity. We must learn to treat every opportunity with the same urgency as we treat a fresh up with a truckload of Cash!

6. How to Follow The Process: Most companies don’t follow a process, and neither do their salespeople. I’d teach them why they should follow it and how it helps them win. If they follow the process and their paycheck grows larger as a result, they will buy in.

7. How to Nurture Their Clients: Too little time, too many prospects. You have to focus on the clients for whom you create the most value. You need to nurture those relationships. Give your customers the VIP treatment, if you don't your competition will. 

8. How to Plan a Sales Call: Honestly, most salespeople don’t plan their sales calls at all. They end up winging it, and stuttering a lot. It’s a mistake to waste a client interaction. Those cost real money, not monopoly.

9. How to Qualify a Customer: Without understanding your client’s true needs, forget wants, it’s difficult to even present your case when negotiating, and it’s even more difficult to arrive at an acceptable solution.

10. How to Gain Commitments: Most salespeople don’t know the commitments they need, and when they do, they don’t have the skill to gain those commitments. Once again, it's most always a lack of proper training. I’d teach them to close and watch them flourish.  A-B-C

I could add a couple dozen more examples to this list about where most salespeople struggle the most during the buying process. It is unfortunate, but from what I see on a daily basis, we as an industry are still not training our salespeople. They should be capable oh handling every step from answering the sales call to setting the appointment, and finally closing the deal. Yes they can!

I think it's safe to say that each thing on this list will benefit the salespeople more than "social selling". If you want to build a personal brand try being very good at what you do to gain recognition. That will get people to notice you for all of the right reasons. Add the topics you would train on in the comments. Thanks for reading.