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Old 02-28-2008, 10:49 AM   #1
XDCX
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Default Internet Sales Department - What percentage of your total sales?

There's no question that the Internet has had a profound affect on the way that consumers research vehicles before they make their purchase decision.

The question here, however, is what percentage of your dealership's sales originate from your Internet Department?

Is the percentage growing, or has it stayed at the same level?
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Old 02-28-2008, 02:28 PM   #2
bluechevrolet
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That is what I do. I am an Internet Sales Manager.

80% of America does their shopping on-line even for vehicles. They don't want the hassle, or don't have the time to really get out and shop.

They'll send a request out to 5 - 10 dealerships and wait for the best price to come back. You've got one shot to impress them and get them into your store.

I've never taken lot ups...this is all I've ever done and yes, it is growing!
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Old 02-28-2008, 04:30 PM   #3
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Originally Posted by mollechevrolet View Post
That is what I do. I am an Internet Sales Manager.

80% of America does their shopping on-line even for vehicles. They don't want the hassle, or don't have the time to really get out and shop.

They'll send a request out to 5 - 10 dealerships and wait for the best price to come back. You've got one shot to impress them and get them into your store.

I've never taken lot ups...this is all I've ever done and yes, it is growing!
Well, you answered 1/2 the question, what about the other part?

Does your Department represent 10% of the Dealership's sales? 20%?

The store that I was at just had a small two-person Internet Department but we were running at 40% of the dealership's production at one time. The Retail Guys had a crew of about 8 - 10 salespeople and they were not Happy Campers. The GSM was paid off of the Internet Department so it was never an issue with him, but he did have some morale problems with the Retail Guys.

Ironically, just as we were hitting our stride the Factories came out with their Employee Pricing Programs and our Department's New Car volume just about ground to a halt.

I'm pleased to hear that your Internet Department is growing. If I can ask, where are you getting most of your leads?
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Old 03-04-2008, 09:05 AM   #4
ROADKING01
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Default Inernet help!

As we all know the internet sales is growing leaps and bonds while lot traffic is no more. My question is how do you make if fair to all of your sales force? I have one man taking care of the internet and spending about 6k a month on the internet for this one man to get all of the traffic while the other salesman are going hungry. All floor saleman are getting fighting mad while the internet salesmans pay check has over doubled in the past 12 months.And i see their point. I am spending all this money for one man to get the leads and cutting back on other forms of advertising so they have even fewer walk up customers. We are looking to expand our internet spending over the next 12 months So What is everyone else doing for the salesman that depend on lot traffic and repeat customers when most customers are coming from the internet? Thanks for any and all the Help
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Old 03-04-2008, 10:01 AM   #5
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Originally Posted by ROADKING01 View Post
As we all know the internet sales is growing leaps and bonds while lot traffic is no more. My question is how do you make if fair to all of your sales force? I have one man taking care of the internet and spending about 6k a month on the internet for this one man to get all of the traffic while the other salesman are going hungry. All floor saleman are getting fighting mad while the internet salesmans pay check has over doubled in the past 12 months.And i see their point. I am spending all this money for one man to get the leads and cutting back on other forms of advertising so they have even fewer walk up customers. We are looking to expand our internet spending over the next 12 months So What is everyone else doing for the salesman that depend on lot traffic and repeat customers when most customers are coming from the internet? Thanks for any and all the Help
Roadking01 - Welcome to the Forum.

I know exactly what you're talking about - the rise of the Internet Department while the Retail Floor falters can be a real morale problem.

That said, as a manager your need to direct your resources where they get the greatest return and for most dealerships that means less print advertising and more Internet advertising.

In answer to your question, I'm not sure that I have an answer - I'm hoping that others will share what they're doing.

Are dealerships cutting the size of their Retail Staff, changing their pay plans, etc? Hopefully we'll get some input and ideas.
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Old 03-04-2008, 10:22 AM   #6
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Default Another thought about Floor Traffic

While there's no question that floor traffic is down because more customers are using the Internet Department, there's also another factor that's worth thinking about.

More people are using the Internet to narrow the choice of what vehicle they're looking for. In the old days if a customer was looking for a mid-sized sedan they might visit four or five different dealers to see what each Manufacturer offered.

By contrast, today many customers use the Internet to narrow their vehicle choice before they even begin the shopping process. That should equate to less floor traffic but a higher closing ratio.

The problem for the Sales Managers is a lot of the more experienced sales people are used to the old way - high traffic = high sales.
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