Has your store ever done a Drop Ship to another CJDR store?

[XDCX]

The thread concerning brokering got me thinking to a time when an executive with one of the dealer groups I called on wanted to buy a Dodge Caravan for his daughter who lived in another market. He wanted the vehicle shipped to a Dodge Dealer in that market but he wanted the Invoice to go to his Dodge store.

I did a little bit of digging and found a CJD dealer in the market who was willing to do a "courtesy delivery" for $300 and then we ordered the Caravan via DealerConnect and changed the "Ship To" Dealer Code to the dealer who agreed to do the delivery. It was remarkably easy.

Granted, that was a long time ago - I don't even know if Chrysler still allows dealers to do Drop Ships but I'm betting that they do.

It worked out great for both the executive and his daughter - it was also a great deal for the Invoicing dealer because they got one more NVDR to enter which helped with MSR and stair step programs.

Has your store ever done a Drop Ship?

[mryan55]

I have done a grand total of one... it was in 2012. Drop shipping is still alive and well... just put the dealer code in on the first page of the "Dealer Order" screen in VOIM and off and away!

Of course, it doesn't mean a whole lot for my business model but I know there are a few dealers in the Detroit metro area who you can find drop shipping stuff all around the country.

[conn02]

Once in the mid 90's. Customer ordered in Texas was transferring to Hawaii and wanted to pick it up there

[XDCX]

Originally Posted by conn02

Once in the mid 90's. Customer ordered in Texas was transferring to Hawaii and wanted to pick it up there

Wow, small world - I was working in Hawaii from 1992 - 1997.

I'm guessing it wasn't too easy to find a Hawaii CJD dealer who was willing to do a courtesy delivery. Most of the dealers in Hawaii, Chrysler and otherwise, try to limit the number of courtesy deliveries they perform so the local customers will buy from local stores.

Given the higher operating costs in Hawaii it's not an unreasonable position.

[mryan55]

I suppose that in those cases the courtesy delivery fee might range well into the $500 to $1,000 range for the convenience.

Even for the fleet courtesy deliveries I do every now and then I'll ask for $300 to $400... it's incremental $$$ but sometimes more of a pain than it is worth.

[conn02]

I think I paid about $300 for the privilege of them tossing the keys to my customer and pointing to their car and saying "there it is". Come to think of it, this may have happened in the late 80's, decades kind of run together

[79LilRedExpress]

I drop ship about 200 vehicles a year for our fleet business. For the most part the dealers that we drop to treat our customers very well. It is a huge opportunity for their service business. About drop ship fees...well... $175 to $1100 !
In some cases, the drop ship dealer makes more than us.

[mryan55]

Originally Posted by 79LilRedExpress

I drop ship about 200 vehicles a year for our fleet business. For the most part the dealers that we drop to treat our customers very well. It is a huge opportunity for their service business. About drop ship fees...well... $175 to $1100 !
In some cases, the drop ship dealer makes more than us.

Not a surprise that they're making out better than you money-wise... and too bad they aren't retail NVDRs so you don't at least have a retail count to show for it...

[XDCX]

Originally Posted by 79LilRedExpress

It is a huge opportunity for their service business.

I totally agree.

Even if the delivering dealer doesn't make much money from the drop ship fee I still think it's good for the store - especially a smaller store in a rural market.

To me some of the biggest benefits of doing courtesy deliveries is they make the store look busier to the people who see the convoy truck dropping off vehicles and they give the dealership staff an opportunity to build relationships with customers who may be in the market for their own car at some point in time.

I guess I buy-in to the old adage that "nothing draws a crowd like a crowd." I like it when stores look busy and there's a lot of business transactions that are taking place.

[mryan55]

Yes indeed -- activity breeds more activity -- isn't that why we all live for Saturdays in the car business ?

[XDCX]

Originally Posted by mryan55

Yes indeed -- activity breeds more activity -- isn't that why we all live for Saturdays in the car business ?

Absolutely.

And being busy is a great morale booster for the sales staff - once you get a little momentum everyone wants to add some production and share in the success.

I also think there's a psychological element that comes into play with the customers - if they see a lot of activity I think they feel more confident in their purchase decision. It's one of the reasons I always liked having a big tent where customers were brought to negotiate deals at an off-site sale - customers could see that other people were buying cars and the sale represented a good buying opportunity.