Which Presidential Candidate is Right for Automotive Dealerships

The social media sites were hot last night during the presidential debate between Former Massachusetts Governor Mitt Romney and current President Barrack Obama.  Since the election of former President Bill Clinton, our nation has been evenly divided over which man is the best person for the job of leading our nation amongst the world.

As a small business owner who helps companies, specifically automotive dealerships, build their business and "Win Customers for Life"; I have some very strong opinions about who I feel should become the next elected President of the United States of America.  However, I will let the reader research and decide who I am for, and who I am against.  (James Schaefer) This blog is meant to encourage voter participation and look at one philosophical point of view of each candidate and who is the best person for business.

I will try to take a simple common sense approach and put forth the facts as if I were hiring for an executive position within my own company.  This essentially is what Americans will be doing in November when they go to the polls.  However, just like in the real world; some people would not make good business owners or managers, and some people need to reevaluate whether they are making the right decisions when they vote.  Now remember, I am writing this blog about one of the many issues that is very important to me and my company.  I am not writing this issue concerning healthcare, defense, or government sponsored programs.  Therefore, a truly informed voter should look at all of the issues individually and way them to how their interest would be affected by the outcome of this year's election.

The following point and position is described referencing Small Business and each candidate's position.  Hopefully, by laying this out in this format the reader will be able to ask questions of their own and vote for the best candidate that will help them and their interest.  This is why the United States is so great.  We all have a voice in who will govern us for the next four years.

Small Business:

The fundamental question is what is a small business? 

My definition is a business that was started from an individual or a group of individuals that developed their company because there was a need for their services or products.  It is a business that is not financed by government or publically traded on the stock market.  A small business is a private company, and how much money the company makes is NOT a factor.  The reason that I feel the amount of revenue a company makes should not be a factor whether the business is considered a Small Business or not is because the risk completely falls on the individual or group of individuals who have created the company.  They could fail if the business fails, but if it succeed they should benefit as well.  In addition, I believe that the higher the revenue the company receives, the more opportunities they are able to provide for future employees and other companies that provides goods or services to that company.

Now the government has a different definition of Small Business.  The Small Business Association (SBA) defines a small business as one that is independently owned and operated.  It is organized for profit, and is not dominant in its field.  Depending on the industry size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period.

Most Automotive Dealerships should fall under this definition of a Small Business.  However, until recently most dealerships were not classified as a small business.  The Recovery Act of 2009 reclassified 89% of automotive dealerships under the SBA; however, the gross revenue receipts were put at $8.5 million.  My contention is that this is not fair to the Automotive Industry.  There should not be a cap placed on any private business in terms of revenue received nor should a cap be placed on these automotive dealerships for profits gained.

The simple reasoning is that if an automotive dealership is successful; they employ sales people, service technicians, administrative personnel, accountants, parts specialist, and vendors (like my company: To read more about DeliveryMaxx select here).  Their staff brings in more income which they will spend stimulating the economy.  The vendors they employ are able to hire more employees and the cycle of economic growth will continue in a positive direction.

The candidates' positions:

President Obama believes that a Small Business is classified by how much revenue a company brings in.  He believes that a company making $250,000 or more should be taxed at a higher rate according to CNNMoney.com.  Under this premise, the government would be able to collect more taxes and thus be able to provide more programs for Americans.

Governor Romney believes that taxes are necessary, but tax breaks for Small Businesses would create more jobs.  He has stated that the 3% of the highest grossing revenue companies are responsible for 80% of the jobs that Small Businesses provide.  In short his method for creating more jobs is to give a break to these businesses and hope those companies will hire more people to help the business continue to experience growth.

I understand each candidates philosophical position on the issue and respect their and others opinion.  The president believes that a company which makes more money should pay more taxes to help the country and its government backed programs.  The governor believes that leaders of successful business will practice good ethics, and thus provide a piece of the pie for more individuals.

A new study by Ernst and Young projects that a tax rate hike will kill 710,000 small business jobs. Depending on who is elected will determine if this result comes to fruition.

I can tell you this.  The larger my company becomes, the more people we will be able to hire.  The more profit my company earns, the more benefits we will be able to provide individuals.  The more benefits we are able to provide to employees, the better our retention of employees become.  If we are taxed at a higher rate, our company will not be able to provide as many jobs otherwise.  It is true, I will put more dollars into my account if my company continues to be successful.  Contrary to the president's speach about small business "you didn't build that business" in July, I used my own money to start this company.  My family and our employees depend on the success or failures of this company.  I am sure many automotive dealerships will face the same concerns.

Hope to see you at the polls in November.

Which Presidential Candidate is Right for Automotive Dealerships

The social media sites were hot last night during the presidential debate between Former Massachusetts Governor Mitt Romney and current President Barrack Obama.  Since the election of former President Bill Clinton, our nation has been evenly divided over which man is the best person for the job of leading our nation amongst the world.

As a small business owner who helps companies, specifically automotive dealerships, build their business and "Win Customers for Life"; I have some very strong opinions about who I feel should become the next elected President of the United States of America.  However, I will let the reader research and decide who I am for, and who I am against.  (James Schaefer) This blog is meant to encourage voter participation and look at one philosophical point of view of each candidate and who is the best person for business.

I will try to take a simple common sense approach and put forth the facts as if I were hiring for an executive position within my own company.  This essentially is what Americans will be doing in November when they go to the polls.  However, just like in the real world; some people would not make good business owners or managers, and some people need to reevaluate whether they are making the right decisions when they vote.  Now remember, I am writing this blog about one of the many issues that is very important to me and my company.  I am not writing this issue concerning healthcare, defense, or government sponsored programs.  Therefore, a truly informed voter should look at all of the issues individually and way them to how their interest would be affected by the outcome of this year's election.

The following point and position is described referencing Small Business and each candidate's position.  Hopefully, by laying this out in this format the reader will be able to ask questions of their own and vote for the best candidate that will help them and their interest.  This is why the United States is so great.  We all have a voice in who will govern us for the next four years.

Small Business:

The fundamental question is what is a small business? 

My definition is a business that was started from an individual or a group of individuals that developed their company because there was a need for their services or products.  It is a business that is not financed by government or publically traded on the stock market.  A small business is a private company, and how much money the company makes is NOT a factor.  The reason that I feel the amount of revenue a company makes should not be a factor whether the business is considered a Small Business or not is because the risk completely falls on the individual or group of individuals who have created the company.  They could fail if the business fails, but if it succeed they should benefit as well.  In addition, I believe that the higher the revenue the company receives, the more opportunities they are able to provide for future employees and other companies that provides goods or services to that company.

Now the government has a different definition of Small Business.  The Small Business Association (SBA) defines a small business as one that is independently owned and operated.  It is organized for profit, and is not dominant in its field.  Depending on the industry size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period.

Most Automotive Dealerships should fall under this definition of a Small Business.  However, until recently most dealerships were not classified as a small business.  The Recovery Act of 2009 reclassified 89% of automotive dealerships under the SBA; however, the gross revenue receipts were put at $8.5 million.  My contention is that this is not fair to the Automotive Industry.  There should not be a cap placed on any private business in terms of revenue received nor should a cap be placed on these automotive dealerships for profits gained.

The simple reasoning is that if an automotive dealership is successful; they employ sales people, service technicians, administrative personnel, accountants, parts specialist, and vendors (like my company: To read more about DeliveryMaxx select here).  Their staff brings in more income which they will spend stimulating the economy.  The vendors they employ are able to hire more employees and the cycle of economic growth will continue in a positive direction.

The candidates' positions:

President Obama believes that a Small Business is classified by how much revenue a company brings in.  He believes that a company making $250,000 or more should be taxed at a higher rate according to CNNMoney.com.  Under this premise, the government would be able to collect more taxes and thus be able to provide more programs for Americans.

Governor Romney believes that taxes are necessary, but tax breaks for Small Businesses would create more jobs.  He has stated that the 3% of the highest grossing revenue companies are responsible for 80% of the jobs that Small Businesses provide.  In short his method for creating more jobs is to give a break to these businesses and hope those companies will hire more people to help the business continue to experience growth.

I understand each candidates philosophical position on the issue and respect their and others opinion.  The president believes that a company which makes more money should pay more taxes to help the country and its government backed programs.  The governor believes that leaders of successful business will practice good ethics, and thus provide a piece of the pie for more individuals.

A new study by Ernst and Young projects that a tax rate hike will kill 710,000 small business jobs. Depending on who is elected will determine if this result comes to fruition.

I can tell you this.  The larger my company becomes, the more people we will be able to hire.  The more profit my company earns, the more benefits we will be able to provide individuals.  The more benefits we are able to provide to employees, the better our retention of employees become.  If we are taxed at a higher rate, our company will not be able to provide as many jobs otherwise.  It is true, I will put more dollars into my account if my company continues to be successful.  Contrary to the president's speach about small business "you didn't build that business" in July, I used my own money to start this company.  My family and our employees depend on the success or failures of this company.  I am sure many automotive dealerships will face the same concerns.

Hope to see you at the polls in November.

Marketing Your Automotive Dealership is NOT that Hard to Do

Recently, I traveled to New Mexico to consult with a dealership about their marketing strategy.  The conversation went a bit like this:

DeliveryMaxx: “What are you currently doing with advertising today?”

Dealership: “We are doing print (newspaper), TV, Radio, and I have a billboard two exits down.”

DeliveryMaxx: “How is that working for you?”

Dealership: “I can’t really put an ROI on it, but I think it is branding us.”

DeliveryMaxx: “In a perfect world, what would you like your marketing and advertising do for you?”  

Dealership: “We want it to brand us, talk about our customer service, and help us sell more cars?”  

DeliveryMaxx: “At least you know what you want it to do for you.  Now, is that strategy working?”  

Dealership: “I’m not sure.  That is what we have always done.  I do know this.  We are spending a lot of money for this advertising, and I can’t measure the results.”

 As a marketer, I see a lot of marketing and advertising spends, but the strategy is all too often ambiguous at best.  There is nothing wrong with traditional advertising.  However, in today’s climate businesses have to maximize their advertising spend.  Is your marketing and advertising accomplishing your goal?

 Before we talk about strategy, let’s use the traditional billboard advertising medium and see if that is providing the best return for your automotive dealership.  The cost to design and produce a billboard averages $ 900 to $ 5,000 depending on the content and who creates the advertising piece.  For a 4-week cycle (marketing companies charge this way because they get an extra month of fees) your cost will range from $ 900 to $ 5,000 for city and interstate signs.  Many of our major highways command as much as upwards of $ 10,000 per cycle (4-weeks).  DeliveryMaxx’s offices are in Dallas, Texas and a recent price quote I received for signage on Loop 635 (LBJ or Lyndon B. Johnson Highway) was for $13,600 per cycle and an additional 25% during December.

 What is Your ROI for this Ad?  What are you trying to say?

 I am not advocating vacating your traditional media spend.  In fact, Ford and General Motors allocate 70% of their advertising dollars worldwide to traditional media.  However, dealerships must have a precise strategy especially during cost-cutting initiatives.  Too often, I see strategies that are the equivalent of throwing ideas into a fan and seeing what sticks on the wall.

Do your marketing meetings produce results like this?

 Marketing and Advertising your automotive dealership is relatively easy to do.  Motivating the consumers’ actions take some well thought out strategy. 

First, you need to identify where the eyes of your consumers are looking.  According to JD Power & Associates Automotive internet Roundtable nearly 80% of all vehicle buyers consult the internet before making a purchase.  That means, you should move more of your dollars to Digital Marketing or Social Media versus traditional forms of advertising.

Second, what is the goal or consumer behavior that you are trying to accomplish?  When considering what type of vehicle the consumer is going to purchase they research published online reviews, blogs, friends and family via Facebook, Google plus, & twitter, and then dealership websites (generally in that order).  Ultimately, your goal is to entice the customer to view your website or visit your dealership.  So how do you influence the consumer to give you a chance to sell them a vehicle?

You have to have a plan.  Social Media is not going away.  It is too convenient and immediate for the consumer.  Sites may change, but the medium is here to stay.  Therefore, how do you talk to potential customers?  There are hundreds of Social Media Sites that resonate on the worldwide web.  Sites such as Pinterest demographics are 97% women.  LinkedIn is dominated by the workforce.  Facebook has replaced many phone conversations.  FourSquare is the new GPS.  YouTube has replaced MTV.  Google Plus is the new business card.

 

 For centuries, businesses have become great their customers have advertised for them.  In the past, it was by word of mouth at a family gathering.  Now, Social Media has made it acceptable for society to share anything from what you had for breakfast to where you went last night.  People will actually take a picture of food and show it to the world.  This is no different for your business.

 The Math is Simple!

The average Facebook user has 245 friends.

If you sold 200 vehicles in a month and your customer showed off their vehicle on Facebook, you would be branded to 49,000 new potential consumers a month.  That’s just Facebook!  Don’t forget about the other sites as well as online reviews.

Now, think about this.  If 1% of those customers were interested in your dealership because of the positive message that was sent by your client, you would have an additional 490 opportunities for a new sale.

The above photo of this happy family from Southwest KIA Dallas was put as their public image on Facebook for the world to see immediate after they purchased their vehicle.  In one hour, the photo received 15 “Likes” and 10 comments.  If each of the Facebook users who “Liked” and “commented” on the photo also had 245 friends then that one sale would have REACHED 6,370 people. Remember, this family also reviewed the dealership online, and their family portrait went to hundreds of other Social Media sites.  In short, they became a virtual billboard for Southwest KIA.

Marketing your dealership is not that hard to do.  You just have to have a great product, excellent customer service, and a strong strategy to share your message.

For more information on Social Media Marketing, Online Reputation Management, Search Engine Optimization (SEO), Local Search Engine Optimization (LSEO), and Customer Loyalty & Retention, please visit DeliveryMaxx.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New DeliveryMaxx Video - Total Automotive Marketing Solution

DeliveryMaxx the industry leader in Automotive Social Media Marketing (SMM) has perfected the science of maximizing the exposure for automotive dealers on the Internet. Utilizing our proprietary software and years of expertise, we can increase your market share and brand exposure through portals such as Facebook, Twitter, Linkedin, YouTube, Flicker and more. We have revolutionized Search Engine Optimization (SEO), Local Search Engine Optimization (LSEO) and Online Reputation Management (ORM).

In today’s marketplace it is vital to have command over your public Brand Image while acquiring and retaining customers. DeliveryMaxx helps you dominate the World Wide Web utilizing your customers as Social Media Billboards which increases your brand share as well as turning a “one-time customer” into a "Customer For Life".