Recession-Proofing Dealership Advertising

Present a superior value: Customers will still buy; they just won’t “over-buy.”

Offer zero percent or deferred payment: Americans are not broke; it’s just that for many, their cash is tied up in their homes. They overbought during the home sales run-up and now, with home sales stalled, they have to spend “real” after-tax money instead of “home wealth” money. This shortage of spending effectively has crimped the “free cash” in the market. And upper-income American consumers have cash but don’t want to take their cash out of their investments, especially in a down stock market. What to do? Offer zero-percent financing on all cars or deferred payment. Most dealers can buy down the rate. Even if you never offered this before, now could be the time.

Create new service lane standards: Live web chat is being used by busy home shoppers. They like the fact that they can hold a conversation with you and book their appointment while they are on the run. Auto dealers are encouraged to include this function in their website and to promote this capacity in their marketing.

Eliminate wasted ad dollars: Approach your media partners and ask for creative support. Ask how these reps can stretch your dollar. If you approach in the right spirit, most managers will join your cause and help. In a battle, choose your foxhole friends carefully. This is not the time to demand added value – this is the time to request creative support and new ideas for a mutual win.  

Buy smarter:  Negotiate an annual plan instead a quarterly buy. Media managers can help you with costs if you help them by planning. Next, analyze your current cost per thousand. Get updated on which media costs what and how to prune this list wisely.

Look the part: Market share can be bought “on the cheap” when your competition stops being aggressive and leaves the marketplace. If you see that a major player goes quiet, then get loud. Pick up their customers and try to keep them. The smartest thing to do in a recession is to present your business as aggressive and in search of value shoppers.