Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
In case any board members or lurkers are going to buy a GM car between now and Jan 2...

As part of the "Red Tag" sale, GM has given each dealer an alotment of "coupons",,,size of alottment is based on the size of dealer's inventory. The dealer has the option of using anywhere from $250, upto $2,000 per unit and it's NOT a rebate, it's dealer-cash meaning he doesn't have to tell you about it.

Yes, coupons are limited so if a dealer tells you that your particular unit of choice "doesnt" qualify for the money, he may be telling the truth. By tonight, all dealers must PRE-DETERMINE which specific units to use how much money on.

It's ridiculous. So if I 'roll the dice' and put $2000 on say, a 2007 white Denali and quote you a price, but now you want the black one...I gotta raise my price to you. Isn't that pleasant for both sides?

I'm passing this along so that IF you go to your local dealer, you know about it.

Sure you'll know dealer cost, etc via your research, but ask the dealer to "show you which units he put the red-tag cash on..he has a list WITH VIN numbers.".

Mostly dealers will use them towards remaining 06's but you never know.

Asking this question could save you anywhere from $250 to $2000.

Jedi

Print the post Back To Top
No. of Recommendations: 0
And of course, he may tell you that his sale price already includes his internal Red-Tag cash.

Again, that could be the fact. If the price is under what your research tells you it should be, then odds are he is being upfront with you.

Jedi
Print the post Back To Top
No. of Recommendations: 1
Thanks for that info Jedi.
Much appreciated

Mish
Print the post Back To Top
No. of Recommendations: 2
Thanks Jedi

Maybe this will get some business asking for "red tag" incentives.

Red Tag Madness
http://globaleconomicanalysis.blogspot.com/2006/11/red-tag-madness.html
Mish
Print the post Back To Top
No. of Recommendations: 0
No problem, and I don't feel I disclosed any state secrets, as there are none in this business anymore.

In the past, dealers cried that "let us control which units we incentivize". But in it's infinite wisdom, GM did that...only they want us to PRE-determine which units to put the cash on. In some, very few dealerships...this leads to skullduggery ie "steer the customer to unit XYZ" and nowadays, that is NOT the way to do business. It IS kosher to honestly tell a customer that "we can sell X for less, if you'll tolerate the color" but unfortunatly, some retailers won't go that way.

Also, it happens frequently where dealers advertise one "loss leader" ad unit. It's not bait n switch, it's a legit unit ready for sale. But someone picks the SAME EXACT unit, same MSRP, but different color. Now dealer tells them that the price goes up, and even though you make a sale, your customer has the feeling you fleeced him. And as someone who feels that REPUTATION is your salvation as a dealer, it pisses me off.

I love being given control of some incentive money. But let me use the money in real-time. Meaning if Mish likes the red one instead of blue, I'll apply the money towards the car of his choice.

In the end I guess it's better than nothing. Hopefully this helps get rid of some 06's.

Jedi
Print the post Back To Top
No. of Recommendations: 1
good luck to you Jedi
Mish
Print the post Back To Top
No. of Recommendations: 0
Thanks!

We've got frigging clowns, magicians, live Taco chefs and the whole 9 yards here tomorrow. We're on the radio all day.

That's the fun in this business. I have no idea whether we'll get 1 customer or 100 tomorrow.

Jedi
Print the post Back To Top
No. of Recommendations: 0
are you advertising this as a "red tag" sale, year end clearance, or what?

Mish
Print the post Back To Top
No. of Recommendations: 4
Hi Mish...

Truth be told, I hardly do 'conventional' advertising anymore and by that I mean TV, Radio, Newspaper. Thing is, with GM's low market share, and especially low in the DC area...how many real buyers am I going to get with a piddly little budget? $30k - $50k per month goes fast in mediums like the Washington Post. Now, if I was a Toyota store, or say...a Chevy dealer in Texas and my market was huge, bet I'd be all over the media. I feel that there's 2 kinds of advertising that works for me: (This maybe long, but I find you to be curious about all sorts of businesses, so I wrote it)

1.)Image/Reputation/Community. A measly HALF page ad in the "Post" costs $10,000. And guess what? Mish will take the ad, and go to his nearest dealer and say "can you match the deal"? And more people are using the 'net, not the paper now.

For $10,000...I can sponsor 5 local kid's ballteams per month. Donate to the high schools new library, and guess what? Coaches, parents, everyone sees it. Ditto boy scouts, girl scouts, etc. I cannot tell you how many customers say "you sponsored Johnnys baseball, so we buy here". This customer is more loyal and guess what? I didn't have to "give away" cars in the newspaper.

Reputation: Today, a customer we've sold 9 cars to in 5 years came in. 45 days ago she bought a high mile used car for her kid. We inspect ALL our used cars, like Carmax. But with a 95k mile car, something will go wrong. Bottom line: $500 radio antenna part needed today, and we paid for the whole thing. Now tell me, do I OWN that customer for $500? Wasn't that better than $10,000 in some newspaper?


2.)Events

This uses some conventional media. BBQ's, free prizes, donkey rides (as long as the bloody city folk don't see the donkey :). So a local radio jock does a live remote from the showroom, and it's "enthusiasm" when people walk in.

3.)Niche

Latino marketing. I'm only now starting to explore this.


4.)Guerilla Marketing via the internet. GM's "Buypower" site is where MANY buyers go to get multiple quotes from dealers. While others spend money on advertising, we merely respond to the email and get this, we SEND a real copy of the invoice, SHOW them all the holdbacks, etc, and then undercut the hell out of competing dealers. There's no margin here, but we get our volume up this way. People are blown away that a dealer sends them the whole playbook, without being asked.

So no "red tag" on the radio tomorrow. It's merely a "cmon over, bring the family, magic shows for the kids, no pressure while you look around, huge year-end discounts, etc".

Sorry for the long answer, but thought I should explain why I don't follow the national-promo all the time.

Jedi

Print the post Back To Top
No. of Recommendations: 1
Sorry for the long answer, but thought I should explain why I don't follow the national-promo all the time.

Jedi


Sorry for the long answer?
Jedi that is the best answer to any question I have ever asked on this board and I will even throw in the PA board on top of it to boot.

Mish
Print the post Back To Top
No. of Recommendations: 2
Jedi,

Your point #4 would have me hooked, no doubt. I say keep that up, that's something that most people don't like about car dealers -- they feel they're getting ripped off. By doing that, you're being completely honest with the customer and they know it. That's one thing I liked about my Saab buying experience last month, they were completely open and willing to bend over backwards for me.

Cameron
Print the post Back To Top