jim ziegler "alpha dawg mentality"

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Jim Ziegler

Jim Ziegler

PresidentZiegler SupersystemsAlpha Dawg MentalityZiegler Speaks to Dealers and General ManagersPg. 22Lets Take a Look at the Future

Manufacturers do not know how to sell cars, and theyre never going to learn

The Hard Facts areIn 2013 we will sell approximately:15.5 million new units43 million pre-owned units

There are approximately:208,000,000 licensed drivers in the USA for 88% of adults within eligible age guidelinesThat is up from 193,000,000 a decade agoIn 1983, more than a third of all licensed drivers were under 30 years of ageToday, that number has decreased to less than 22%Qualified adults in 1983 under the age of 40 accounted for more than 50% of all driversToday that number has diminished to less than 40%

There are 234,467,679 cars and light trucks registered to US CitizensIn other words, we own 1.27 cars or light trucks per licensed driver alreadyIf we are going to continue to sell 58.5 million units annually, and that number is expected to grow, we will have to sell a new or newer car to every licensed driver every 3.5 yearsThis is in direct conflict with the fact that the average car today is 10.8 years old. (Compare that with 6.9 years in 1973)

Collectively, all of manufacturers selling product in the US Market: Have forecast their production in excess of 35 million unitsAround mid-year will make dramatic revisions scaling their production plans backThe year-end incentive wars are on

The numbers dont lie! At some point, were going to reach market saturationagain.

In 2007:We sold 17 million new unitsWe sold 43 million pre-owned unitsThis is the all-time record U.S. automobile salesIf it is to happen again, it wont be until perhaps 2015

Remember:Were cramming nearly 61 million units a year into a potential customer base (licensed drivers) of 200 millionThe Internet is the worst thing that ever happened to Car DealersThis is a predicted cycle

The internet has not created the sales of one additional unit that we wouldnt have sold anyway

The internet has inserted vendors between us and the retail customers who are taking profits while reducing our profitsAutoTrader.com has annual revenues of more than $1,037,000,000That is One Billion, Thirty Seven Million Dollars annuallyThe majority of that billion dollars was paid by dealers out of what was otherwise your profits

Add up all money paid to all of the vendors who are grabbing some piece of your pie to deliver sales to us that would have happened anyway

No vendor has ever said credibly they created additional customers or brought new buyers into the marketplace

All the Internet has accomplished is redistributing which dealers get the business.

It doesnt matter if we like it, love it, or hate it. Its here and its not going away. You have two choices, Grow or Die

If your dealership is underperforming while a competitor across town is over-performing, theres a strong possibility they are taking that business from you with superior technology-enabled sales and marketing

If its passive messaging and not interactive advertising, its not effective

Contrary to popular belief, balloons are not state-of-the-art marketing

The survivors, and ultimately the winners, are going to be those dealerships that made the commitment to the personnel, tools, and processes that will put your company on top

Commitments Required:

Resistance to Measurement

Customer Relationship Management

Daily Save-a-Deal Meetings

The Bottom Line is The Bottom Line

The Bottom Line is The Bottom LineThe areas of concern:FacilityProcesses and TrainingStaffingInventoryCRMAdvertisingInternet and Customer Communications DepartmentCommunity InvolvementReputation Management

The Final Factoris dealer commitment

You want the numbers? You want to survive and prosper in this increasingly competitive environment? The only way to increase your businessor even stay where you are nowis to take that business from a competitor that already has it. The Internet is the combination to the vault and you need to get serious or get out of the game.