Your Marketing Questions Answered!

Our final FAQ Blog will be covering two of our most common marketing questions. Check out Sara Hey’s advice below! If you have any questions you would like answered, send them to Vanessa@bobclements.com!

  1. What percentage of sales should be spent on marketing?W

There is a simple rule of thumb in dealerships when it comes to how much you should spend on marketing. If your dealership is less than 5 years old, or if you have brought on a new major line in the last five years, in most cases or depending on your margins, you should spend 5% of your gross revenue on marketing. As a quick reminder, your gross revenue is all of the money that your dealership brings in before you pay your taxes and expenses. If your dealership is older than 5 years old, and you haven’t brought on a new major line in the last 5 years, you should spend 3% of your gross revenue on marketing.

Let’s say, for simplicity’s sake, ABC dealership has generated a total of one million dollars over the last year. In this example, this pretend dealership has been in business for four years, so we will assume that 5% of the gross profits are going towards the marketing budget. That is $50,000. That is a lot of money. In most dealerships, you could get an entire additional employee for your marketing budget. In order to justify this, we have to be sure that our marketing money is generating us as much as an employee would.

  1. How do you determine who your typical customer is?

Well, it’s easier than you think. Next to your point of sale, simply have a sheet where your employees can write down key information such as the customers gender, age (over 40 or under 40) and their favorite radio station. That’s it. You might want to ask a few different questions to help narrow in on where you might best market such as, “Do you subscribe / read the local paper?” or “How often do you drive down Highway 71?” Find out where they spend their time and what they are interested in. Once you understand who your customer is, you can start doing a better job marketing to them.

By | 2018-10-31T19:03:08+00:00 October 31st, 2018|Uncategorized|

About the Author:

In 2011, Sara joined the BCI team to help build social media and marketing efforts. Soon after, she began taking on the management of special events such as GIE +EXPO and the BCI Manager Boot Camp. Today, Sara also assists with the daily operations and product development at BCI. Working with companies in the OPE, AG and Power Sports industries, she oversees the development of customized training programs for their dealers. And, in keeping with the mission of BCI, she consistently works to create new training materials and programs that can be delivered to dealers in affordable and accessible ways. Sara is an engaging and commanding speaker and will share proven ways to help you gain and retain exceptional employees. She has a passion for helping small businesses, and that translates to everything she does. Sara is a graduate of North Park University where she earned a degree in Psychology. After living in Chicago for several years, she and her husband, Austin, now reside in Liberty, Missouri with their three daughters. In her spare time, Sara likes to participate in kickboxing, read and spend time with her family.