What should dealers do?
Discussion
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
Urgent Harry said:
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
Offer better trade-in values and maybe more incentives such as free services etc. Have read on here in the past couple of days that some dealers offere these and other things as a choice (ie sat nav systems etc)
Or, just lower the prices and increase turnover. Yes, does nothing for residuals but they will always take a hammering in a slow market. I don't know about the finance alternatives they can offer - they look pretty OK (if you can afford it) so not sure they can increase turnover by modifying the deals.
Just IMO.
rev-erend said:
Find a Billionaire who wants to make a small fortune..
Edited to add - oops they already tried that one
>> Edited by rev-erend on Friday 9th December 22:11
Albeit the wrong person.
Oooh, controversial!
Ah well, it's friday night, we've all been down the pub, etc.
Feel free to open fire, because I'm going to sleep.
maggit
Read you all in the morning, have yourselves a nice night.
Urgent Harry said:
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
.. for what its worth I think TVR need to get slightly creative and help the dealerships out a little more. From reading the S6 forums.. it would seem quite a few new owners (me included) have come from Z3/Z4/M3, S2000, MGF, Boxter/911 ownership. Why not invest with a marketing agency to buy in some 'demographic profile lists' of these owners.. or actually buy these owners details (might be possible). Then target them directly with potential offers on good trade-in prices eg 10-20% over standard industry book price. Strike a deal with an independent auction house to sell them... or something similar. Okay someone would need to run the numbers to see what makes financial sense..but if they need to take a hit on margin to build customer base.. might be worth the risk. Just an idea.. you did ask
.
MikeyT said:
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
Offer better trade-in values and maybe more incentives such as free services etc. Have read on here in the past couple of days that some dealers offere these and other things as a choice (ie sat nav systems etc)
Or, just lower the prices and increase turnover. Yes, does nothing for residuals but they will always take a hammering in a slow market. I don't know about the finance alternatives they can offer - they look pretty OK (if you can afford it) so not sure they can increase turnover by modifying the deals.
Just IMO.
Sounds good in theory, what about things called "overheads" ??? In my experience, you can give someone what their car is worth, if you want more, sell it yourself!! You seem to begrudge people making a living and employing people, would you go to work for free?? I know i wouldn't. To get the best deal when buying a car, sell your part exchange first and negotiate a better deal, its easier. Afterall, the whole point of part exchange is that its easy and quick, its sometimes not what you want price wise, but you make the commercial decision to sell it for that price there and then or sit on it for days, weeks, months until you sell it. Whats that time worth.
There's been other threads about this before, the long and the short of it is, desirability versus price.
I think with the 3 year warranty and service packages the dealers have the right sales package. IMO they need to get more bums on seats for a test drive - after a test drive you're either a TVR person or you're a Porsche person so to speak. A more affordable entry model might help too - such that a new/nearly new car was around 20-25k (right in S2000/350Z territory).
Also, lets face it, the majority of the population do not want to put up with the perceived reliability and niggling issues of a TVR, however they will put up with the same problems on a BMW/Merc - funny old world innit. Also many drive their sports cars more for image than anything else, why else do people have Porsches etc. who NEVER leave central London (I know most Porsches are not bought for that reason but YKWIM).
Also, lets face it, the majority of the population do not want to put up with the perceived reliability and niggling issues of a TVR, however they will put up with the same problems on a BMW/Merc - funny old world innit. Also many drive their sports cars more for image than anything else, why else do people have Porsches etc. who NEVER leave central London (I know most Porsches are not bought for that reason but YKWIM).
So, the consensus is to get more bums on seats to prove that the cars are as good as you all say ()...
The more frogs you kiss, the more likely you are to find your prince (so to speak), so if the dealers are reliant on showroom footfall, who's job is it to get potential customers there? I wasn't intending this thread to turn into a TVR-bashing session, but are TVR really doing enough to generate interest in the cars? Website is SH1T, brochures are a joke, press cars are often not up to scratch... and where is the advertising? The London showroom was potentially a good move but it's about to close and has caused so many ructions with other dealers because of the way it has operated that it can hardly be called a success. And why don't the cars fair well enough in head to head tests in mags, on Top Gear etc?
So, let's change the question to: "What should TVR do?"
I've got one suggestion: make a definitive statement on the Speed 6 engine, emphasise the 3 year warranty, and get a load of Speed 6 service support engines so that when (or, for the benefit of Unrepentant, if) an engine fails, they can turn it around within a week. In other words, to compete with the big boys, try to behave a bit more like them.
)... The more frogs you kiss, the more likely you are to find your prince (so to speak), so if the dealers are reliant on showroom footfall, who's job is it to get potential customers there? I wasn't intending this thread to turn into a TVR-bashing session, but are TVR really doing enough to generate interest in the cars? Website is SH1T, brochures are a joke, press cars are often not up to scratch... and where is the advertising? The London showroom was potentially a good move but it's about to close and has caused so many ructions with other dealers because of the way it has operated that it can hardly be called a success. And why don't the cars fair well enough in head to head tests in mags, on Top Gear etc?
So, let's change the question to: "What should TVR do?"
I've got one suggestion: make a definitive statement on the Speed 6 engine, emphasise the 3 year warranty, and get a load of Speed 6 service support engines so that when (or, for the benefit of Unrepentant, if) an engine fails, they can turn it around within a week. In other words, to compete with the big boys, try to behave a bit more like them.
Harry, for dealers to sell more cars, the factory has to turn out cars that people want to buy. I and many friends would not consider swapping our V8 powered cars for something with a straight 6. Just watched Top Gear, and was pleased to see what Marcos are doing. What TVR need is to buy in a good V8 (chevvy) and fettle it to give a reliable and tractable 350-400 BHP unit. Buy the engines in, slightly mod them by way of pistons cams etc. If it's good enough for Aston Martin (jag engines), then it should be good enough for TVR. I have friends who work in the factory, and they are turning out four cars a week. Ten years ago it was eighteen cars a week. I know the Speed 6 is now supposed to have been sorted, but the damage has been done, and people have lost faith in the brand. That said, the situation is not beyond hope, but I don't see the present management making the right moves.
Dodgey_Rog said:
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
Offer better trade-in values and maybe more incentives such as free services etc. Have read on here in the past couple of days that some dealers offere these and other things as a choice (ie sat nav systems etc)
Or, just lower the prices and increase turnover. Yes, does nothing for residuals but they will always take a hammering in a slow market. I don't know about the finance alternatives they can offer - they look pretty OK (if you can afford it) so not sure they can increase turnover by modifying the deals.
Just IMO.
Sounds good in theory, what about things called "overheads" ??? In my experience, you can give someone what their car is worth, if you want more, sell it yourself!! You seem to begrudge people making a living and employing people, would you go to work for free?? I know i wouldn't. To get the best deal when buying a car, sell your part exchange first and negotiate a better deal, its easier. Afterall, the whole point of part exchange is that its easy and quick, its sometimes not what you want price wise, but you make the commercial decision to sell it for that price there and then or sit on it for days, weeks, months until you sell it. Whats that time worth.
There's been other threads about this before, the long and the short of it is, desirability versus price.
What are you getting so hot under the collar about?
A question was asked and I gave my opinion ... OK?
I work in a franchised main dealer ( Not TVR.) and if i may offer my opinion. It doesnt matter what the dealers do.!! Provided you are sticking to TVR and not selling for the cash or to move marques.... Reason?? Simple. They knock 5 grand off the new car, they knock 5 grand off the part ex... If , at full up price, the gap to trade up was 10 grand then after discounting both the cars it still is. Our trouble is we want it at both ends and im afraid that aint going to happen.... Steve.
The TVR world appears to revolve within its own, almost protective, market.
Someone has to get out there and break into new territories by doing some bloody good advertising !
Before buying the Cerb, the 75-80% reputation of TVR - even within these gallowed sites - is of doom, gloom and despair !
Go the Microsoft route and pay some good sales wo/men to lie their back teeth out !
Someone has to get out there and break into new territories by doing some bloody good advertising !
Before buying the Cerb, the 75-80% reputation of TVR - even within these gallowed sites - is of doom, gloom and despair !
Go the Microsoft route and pay some good sales wo/men to lie their back teeth out !
Mad Mitch said:
It doesnt matter what the dealers do!!
In the TVR world, that's pretty much the case. No individual dealer can assume the responsibility for building/rebuilding TVR's market, not least because it wasn't the dealers that flucked it up in the first place.
I don't see discounting making much difference. Discounting makes sense if (a) price is a barrier or (b) it's known that there are people sat on the fence who need some inducement to get off it. The sad fact is that - even at a handful of cars a week - TVR is over-supplying. Demand is rock-bottom.
Discounting doesn't stimulate demand. Dealers can't stimulate demand, but they have to turn stock to survive. Covert discounts (strong trade-in bids, inclusive servicing etc.) have been available in the network all year. That was hardly ever the case a couple of years ago. Overt discounting and price-based offers are the true, sad reflection of the state of the current TVR market.
Look at the facts: TVR has now shot its bolt and ALL 'future' models are now in the market. The Tuscan S Convertible, barely released, is already available at discounts worth around £6,000!! This level of inducement is unprecedented and it doesn't bode well for TVR. As I said earlier in the thread, a few people are going to pick up a bargain - but they are probably the people who wanted a TVR anyway.
If anything dealers need a bigger profit in the cars to support the 36 month/36K warranty so, again, rinsing out a profit at the start doesn't bode well for the future.
With the profit kicked out of new cars ...the used market on its arse ...a monster warranty to support ...very little demand ..."What can dealers do?" Get another franchise unless TVR bucks up its ideas.
BossCerbera said:
Demand is rock-bottom.
Well....It may be compared to other years, but the Sagaris forum grows almost daily..........
and I had yet another call yesterday from a very excited someone ordering a new Tuscan Convertible.
IMO I don't think demand is low because of lack of confidence in the product.....more due to the current economic climate......after all we are talking £50k+ & £40k+ cars........
BossCerbera said:
"What can dealers do?" Get another franchise unless TVR bucks up its ideas.
Thought most dealers already had...other than the London bespoke guys........
Seems most have Noble or Lotus........
Will be interesting to see how many take on Marcos......(if Marcos are happy with that) and if so...how NS will react to it
YP
>> Edited by yellow peril on Monday 12th December 09:31
MikeyT said:
Having just criticised dealers in another thread for discounting cars (bad for residuals and brand value etc.), I'd like to hear what PH'ers think dealers should do to shift more cars, especially from stock. TVR have their own agenda (which many of you may know I don't subscribe to) but in the meantime dealers need to sell new cars to survive, so what should they do?
Offer better trade-in values and maybe more incentives such as free services etc. Have read on here in the past couple of days that some dealers offere these and other things as a choice (ie sat nav systems etc)
Or, just lower the prices and increase turnover. Yes, does nothing for residuals but they will always take a hammering in a slow market. I don't know about the finance alternatives they can offer - they look pretty OK (if you can afford it) so not sure they can increase turnover by modifying the deals.
Just IMO.
Sounds good in theory, what about things called "overheads" ??? In my experience, you can give someone what their car is worth, if you want more, sell it yourself!! You seem to begrudge people making a living and employing people, would you go to work for free?? I know i wouldn't. To get the best deal when buying a car, sell your part exchange first and negotiate a better deal, its easier. Afterall, the whole point of part exchange is that its easy and quick, its sometimes not what you want price wise, but you make the commercial decision to sell it for that price there and then or sit on it for days, weeks, months until you sell it. Whats that time worth.
There's been other threads about this before, the long and the short of it is, desirability versus price.
What are you getting so hot under the collar about?
A question was asked and I gave my opinion ... OK?
And i gave mine, ok??
mrmaggit said:
Find a Billionaire who wants to make a small fortune..
Edited to add - oops they already tried that one
>> Edited by rev-erend on Friday 9th December 22:11
Albeit the wrong person.
Oooh, controversial!
Ah well, it's friday night, we've all been down the pub, etc.
Feel free to open fire, because I'm going to sleep.
maggit
Read you all in the morning, have yourselves a nice night.
You mean Tony S bought the wrong company
rev-erend said:
Find a Billionaire who wants to make a small fortune..
Edited to add - oops they already tried that one
>> Edited by rev-erend on Friday 9th December 22:11
Albeit the wrong person.
Oooh, controversial!
Ah well, it's friday night, we've all been down the pub, etc.
Feel free to open fire, because I'm going to sleep.
maggit
Read you all in the morning, have yourselves a nice night.
You mean Tony S bought the wrong company
But maybe it wasn't for sale at the time.
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