There are two kinds of vehicle owners in this country, those that drive a truck (SUVs included) and those that want a truck. In the latest 2018 May sales recap, trucks commanded 62 percent of new vehicle sales. This paradigm change in the market is so complete that Ford will quit producing cars in 2020.
This presents a tremendous opportunity for equity mining. Every “car” in the service lane presents an opportunity. It’s not that people just want trucks – they need trucks.
American culture, both young and old, is increasingly focusing on wellness. Trucks and SUV’s are now crucial for hauling gear. Paddleboards, kayaks, biking, hiking – you name it – are all facilitated by owning a truck. Previously, those who owned a pickup truck also had a car in the driveway. But now, that second vehicle is an SUV.
The desire for trucks and SUVs is an opportunity to create incremental sales, shorten the customer trading cycle, and to establish a significant profit center for a dealership. These opportunities turn into success when equity mining their database and equity mining the service lane are married to the right process and the right tools. Dealerships that set up a full-time department/team and have them focus on equity mining for service lane sales can convert from 2 percent to 4 percent of their total customer pay and warranty repair orders into new vehicle sales. Additionally, they can convert 3–5 percent of the eligible database equity mining contacts into sales monthly.
A little push
Make no mistake about it, a new vehicle purchase is still an impulse item. Very rarely does anyone have to have a new vehicle. A truck or SUV is an impulse buy for very rational reasons: “It’s so handy for chores around the house.” “It provides greater visibility and safety.” “It allows us to haul paddleboards and kayaks.” And so on.
Place an SUV or Crossover equipped with a bike rack, paddleboards, or kayak in the service drive next to the customer lounge entrance. Have artwork on the customer lounge walls featuring trucks, SUV, and crossovers in lifestyle settings. We have always said that two of the most influential factors in sales are social acceptability and a compelling reason to buy. Trucks and SUVs give you both.
Another tactic is to incentivize buying with YETI giveaways. Try displaying these coolers near the truck, and advertise that they come free with vehicle purchase. These coolers are known for their high quality and cool factor – pardon the pun. Leveraging the outdoor and adventure lifestyle associated with the YETI brand will help you connect this image with the purchase of a truck.
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Prepare to win
Create an atmosphere for equity mining to be successful. We have all heard the quote, “The key is not the will to win… everybody has that. It is the will to prepare to win that is important.”
Taking time to stage the service lane can give an extra push to your equity mining and provide a leg up for your salespeople.