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Old 07-25-2005 | 09:33 PM
  #106  
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Re: Banned in Wilmington

What I shared with this thread was an experience.
Good for you! Me too. And my experience at a Mazda dealer was awful. Does that mean they are all bad?
My credibility should have no bearing as to what my experience held.
Sorry. But credibility matters. ANYONE can register here and post. Even 16-yr old Civic owners who want to troll (not saying you are one of those BTW). I'm no expert on much, but at least people here know where I'm coming from since I've been here a while. Someday people will get to know you here and will possibly be more inclined to believe what you post.
Appearantly, you did not read the post. He was my brother. No one in my family has ever owned a Mazda before. You must have missed the part where I stated that I was a GM fan.
What was that saying... "Talk is cheap, deeds are precious". If you are a true GM fan, you likely find a way to acquire a GM vehicle despite the occasional low-skill salesperson you might encounter. (More below on that). But let's take a look at your original post, since I do agree, it is revealing.
I would like to share my experience from the past couple days pertaining to purchasing a new car for my brother...My brother and I were bent on ordering a new Cobalt SS...I was extremely confident that I was going to help purchase this car...I introduced myself to the salesman and stated that I was very interested in a new Cobalt SS. And that I would like to hear some more information about this car...I was tempted to pull out my checkbook and show him my balance, then walk out the door.
Who is this car for? You or the brother? Perhaps your brother was not on fire about the Cobalt SS. For one thing, it has two doors and the Mazda 3 has four. The Mazda 3 is several k$ cheaper, and I assume your brother is helping pay for 'his' car, based on the above. (The Mazda 3 also has 150 ft lb TQ instead of the 200 on the Cobalt, but I digress). Put yourself in the salesman's shoes for a minute. Two guys walk in, with indications they want to share in paying for a Cobalt SS. No one mentions their (supposed) intent to order a new one; instead they ask for basic info on the car - implying they are in the initial stages of their purchase planning. I'm not going to waste a bunch of bandwidth evaluating your wardrobe (congrats on dressing up for work BTW )... but you've said you had done some yardwork before visiting the dealer. I assume you were dirty, smelly or both, by your own observation. Wouldn't you wonder about a customer's intent/resources from all this? I would.

Another thing. Personally I am GLAD when salespeople leave me alone for a while in the showroom. I like trying out seats, opening trunks and hoods, and checking various things without a salesman peering over my shoulder and tugging on my sleeve. Maybe that's just me. But the other thing I learned (when I was... about 17) was that I am always free to go ASK for some help. Ask the receptionist, ask the new car sales manager, you know, ASK. Don't stand around like a hapless doomed victim of neglect. It really just speaks volumes to me about your true intent. If you were actually that excited about the Cobalt SS (for whomever) you would have ASKED someone for help and would have asked for a different salesperson or for that matter, gone to a better dealer. I've owned Chevy's in the past, and there are a couple dealers in my area I don't work with, but several which are top notch (just like many other brands/makes).

Please tell me you just did not refer to me with a racial slur?
Huh? How did race get injected into this? I'm caucasian, and one of my first jobs was as a ditch digger. So was my best friend in high school (caucasian, ditch digger). My bro-in-law is in construction, sometimes he operates machines and sometimes digs, guess what... caucasian too! Maybe if you're wondering who's doing racial stereotyping... you should look in a mirror.
Old 07-25-2005 | 10:47 PM
  #107  
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Re: Banned in Wilmington

Buickman, I was curious to know if you ever worked at a certain Buick dealership in Rochester NY?

JasonE- Do you do GMC's as well? Got any 2500 HD's crew or ext cabs. How you doing with this GMS pricing? If you're looking to swap in any red scudfires or g6's my father has a few in the lot at columbia motors
Old 07-25-2005 | 10:52 PM
  #108  
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Re: Banned in Wilmington

My father was a Buick dealer in Brockport New York for years. I worked there for 14 years, leaving for Flint in 1982.
Old 07-26-2005 | 06:39 AM
  #109  
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Re: Banned in Wilmington

Originally Posted by Buickman
STEP ONE: Elimination of Destination Charges. "The Return" announcement proclaims, “If you want to pay freight, get a foreign car”. This is mindful of Iaccoca's proclamation, “If you can find a better deal, take it.” This worked for Lee, and showed his tenacity. He earned Chrysler respect and admiration by showing true leadership. He had gumption and people like that. It's an attraction. The problem with GM is that we are seen as softies, and losers. Taking a stance, and actually giving customers something easy to understand, and appreciate, will be a tremendous opening salvo. It will set the competition back on their heels, and let people know we are serious. This step begins our weaning process from the devastation of rebates. We can work towards effective net pricing, and earn goodwill in the process. .
The notion that there's no free lunch is still true today. Remove the destination line and, unless the intent is to sacrifice profit, the shipping will go in the MSRP. MSRP is an issue in marketing. One can choose not to charge for shipping, but it does cost money to ship cars. If you don't cover the cost you sacrifice profit.. If w are speaking about marketing, I think you miss a key point. Stockholders are looking for profit.

I suppose just as many customers reject shipping as those that are irritated by dealer "delivery" charges which tack on a set $300-$800 to the transaction. As I said, it costs money to ship cars.. so it has to factor into the price, either buried or right there on the sticker.

Originally Posted by Buickman
STEP TWO: Elimination of Mid Year Price Increases. Ten days after the original announcement, we release the next step. The deceptive practice of incremental increases only clouds the purchase process. Customers will perceive us as doing something positive and beneficial, rather than sneaky, and underhanded. We will earn more goodwill without any true expense. .
I don't agree with your premise that a price increase is "deceptive". I suppose if a customer is really a slow shopper and comes in to kick tires in August and pulls the trigger to buy 4 months later this becomes an issue. If a customer special orders a car there is price protection to hold down this sort of issue.

I'd have to see some real numbers on this being a deal breaker of widespread concern.

Originally Posted by Buickman
STEP THREE: Quarterly Incentive Changes. No more pressure to buy now, hurry before it ends, only to be followed by another program. This repetitious process, which has been our norm, destroys credibility, and works against us in many ways. How many times has a customer purchased, only to have the rebate etc. increase the very next day? The effect of this goofiness has customers riding around in their new cars and upset that they just missed an opportunity. Let's create some stability, and simplicity, in the marketplace. Give customers’ confidence in their decisions, and provide the right amount of time to make informed choices. Give the customer the opportunity of ordering the vehicle of their liking, without worrying what the deal might be. Also, allow the retail personnel an appropriate amount of time to properly sell, and deliver, the unit. This would be preferable to slam dunking folks who are under the gun to meet a deadline, and who end up less than completely satisfied with their delivery process. Quarterly adjustments only make sense, and give the business a well-needed sense of order. .
Unusual that you, as a saleaman, want to take the sense of immediacy out of a car deal. It's a month to month business at every dealer I have seen.

I'd prefer product that requires no incentive to move. Your suggestion limits GM's ability to be agile. If anything GM needs more quickness and faster reaction...not less.

I feel money is better spent under the hood rather than on the hood. Styling and content< and by content I mean options people will buy rather than want> moves people more than "the deal", but some folks have to have a fire set under them, regardless of the product... thus incentives to adjust to the fence sitters in an effort to balance over production or general economic realities such as interest rates which remove folks from the market due to a sense of uneasiness with the future. Month to month adjustment have to do with agility to market realities.

Originally Posted by Buickman
STEP FOUR: Destination Detroit. This idea brings all future award-winning dealers and salespeople to the Motor City. The benefits are countless. First, we would be more effective in focusing the meetings, and events, on the business at hand. Rather than desert tours and polo matches, we entertain showing Motown's finest offerings. Have the individuals tour Milford Proving Grounds, drive on the test track, witness a crash in order to illustrate safety testing, go through the Styling Studio and expose future designs. Allow them to meet with engineers, and see the inner workings of corporate headquarters. We pamper the spouses with our city's best services. At the conclusion, we send them back home ecstatic about GM, and Detroit. These actions would build goodwill for our city and company, and spread it throughout the country. Meanwhile, our executives can stay at home, which would be very good for their family lives, and our expense column. .
Not a bad idea, at face value, however; different folks are motivated by different rewards.

I'd hope someone selling GM product is already fired up and excited about the product and the dealer management would hire and keep such individuals. You idea is fine for those that see it as an exciting prospect. Some will likely view a trip to Cancun or other locale as a better "pat on the back" than a day at the Ren Center... Some folks don't need a pep talk and resent it given as a reward. It can be a tough sell to the wife that all the "bell to Bell" workdays were worth it if she sees nothing but a trip to downtown Detroit out of it. As I say, you can't one size fits all folks when it come to inspiring them.

Originally Posted by Buickman
STEP FIVE: Home Deliveries. We announce an effort of working with our dealers to bring to the customer the vehicle of their choice, directly to their place of employment, or residence. Most customers either dread, or dislike, the dealer experience. Offering this free service would further build goodwill, and lead to customer appreciation. I've made an entire career out of this offering. People absolutely love it, and this is responsible for more sales than anything I've ever done is. Once we begin this process, our competition will probably follow, but hey, we'll be seen as the leader for a change. .
Not enforcible on dealers. Most dealer will run as fast a possible away from getting into transactions off premesis which will trigger recission laws under federal door to door statutes or states 3 day cooling off rules. Setting up a 3 days to untwist for customer's will not fly with dealers.

Many customers don't like the dealer experience, but it's a dealer by dealer issue. It's the haggle and hassle coupled with unexpected or unexplained charges that tick folks off...not where the experience takes place. Folks dislike being jerked around even less in their own home...

Much like internet sales that usually come down to price and dealers giving up back end dollars...this one won't be participated in no matter what a manufacturer suggests.
If it won't be followed, it's not a plan.

Shall I continue with the next points or is this falling on deaf ears?

Last edited by 1fastdog; 07-26-2005 at 07:09 AM.
Old 07-26-2005 | 09:25 AM
  #110  
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Re: Banned in Wilmington

Ears wide open, been waiting for some discussion on the points.
1. Eliminating destination to replace another incentive of strictly monetary value. If we end a cash rebate of $1,000 and replace with no freight, the customer perceives value and we come out roughly $300 ahead.
2. Mid-year increases are deceptive in that they were instituted mainly to avoid the announcement of a large increase at the beginning of the year. Holding the line on prices will be perceived as a plus for customers and make us look like the "good guys". Simply raising prices and raising rebates is stupidity.
3. You're right, no incentive would be best. However, given the current situation, they are going to be around for awhile. In the meantime, let's present a logical, clear picture of our offerings. Instead of forcing the deciphering of a myriad of ever changing programs, give retail personnel and customers a stable, understandable environment in which to do business. Salespeople could then focus on product knowledge, and customer service, in a more level headed, steady stream of operations.
4. Let's not forget, these are very competitive and difficult times. For now, I believe the focus needs to be attuned to the business at hand, we can return to exotic locations once we have Returned to Greatness.
5. I have personally had tremendous success with this offering, as have the dealers who I have consulted. One rather small Buick store in PA was able to double his business. I think dealers will "come around" to seeing the benefits once they test the idea for themselves and see the results.
Again, thank you for opening up the debate. You bring up pertinent issues and certainly have vaild agruments. No doubt there are always two sides to most discussions. Debating the virtues on both sides of the fence can only lead to improvements. Ready for more, at your convenience sir...

Last edited by Buickman; 07-26-2005 at 09:30 AM.
Old 07-26-2005 | 09:30 PM
  #111  
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Re: Banned in Wilmington

Originally Posted by Buickman
Ears wide open, been waiting for some discussion on the points.
1. Eliminating destination to replace another incentive of strictly monetary value. If we end a cash rebate of $1,000 and replace with no freight, the customer perceives value and we come out roughly $300 ahead.
2. Mid-year increases are deceptive in that they were instituted mainly to avoid the announcement of a large increase at the beginning of the year. Holding the line on prices will be perceived as a plus for customers and make us look like the "good guys". Simply raising prices and raising rebates is stupidity.
3. You're right, no incentive would be best. However, given the current situation, they are going to be around for awhile. In the meantime, let's present a logical, clear picture of our offerings. Instead of forcing the deciphering of a myriad of ever changing programs, give retail personnel and customers a stable, understandable environment in which to do business. Salespeople could then focus on product knowledge, and customer service, in a more level headed, steady stream of operations.
4. Let's not forget, these are very competitive and difficult times. For now, I believe the focus needs to be attuned to the business at hand, we can return to exotic locations once we have Returned to Greatness.
5. I have personally had tremendous success with this offering, as have the dealers who I have consulted. One rather small Buick store in PA was able to double his business. I think dealers will "come around" to seeing the benefits once they test the idea for themselves and see the results.
Again, thank you for opening up the debate. You bring up pertinent issues and certainly have vaild agruments. No doubt there are always two sides to most discussions. Debating the virtues on both sides of the fence can only lead to improvements. Ready for more, at your convenience sir...

I'll get to the rest when possible, but let's hit on these one more time...

1. I'm still unconvinced that destination is an issue for many other than folks tha live a few miles from the plant.

Offsetting on incentive with another isn't value added to the customer. Even if you end up $300 "ahead. I think a gotta have car is of value to the customer whereas a shift on incentive, if necessary...NECESSARY to roll the steel. What isn't charged for isn't of value to the customer, IMO. To clarify, I don't see folks walking on deals over destination charges. Objections to be addressed across the board can't be just anecdotal or geographic location eccentric. We both agree the money has to come from somewhere and marketing from vehicles to things advertised on TV often have the distinction that the price is X and the shipping and handling is Y. It's marketing 101 because $19.95 plus shipping and handling sounds more appealing than $27.75... You yourself have cautioned against to setting price where there's no wiggle room when it's needed.

2. We agree to disagree.

more later
Old 07-26-2005 | 10:20 PM
  #112  
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Re: Banned in Wilmington

The objective here is altering perception without cost. Granted, your slant on the idea is likely more right than wrong. However, the issue is image and the PR from this move would yield goodwill and set the new direction. In the process we come out dollars to the good. Whether it would work, and the level of success, may be debatable, but there would be nothing to lose and no harm in trying it out. Worse case, we move on to the next idea. Best case, we turn the tide of public opinion about GM as a company, and our position as an active industry leader. Since there is no real risk involved, and no cost, what harm is there in giving it a go? Furthermore, we wouldn't have to spend large dollars advertising it, the press would spread the word for us.
Old 07-26-2005 | 11:48 PM
  #113  
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Re: Banned in Wilmington

Yeah Buickman, I was wondering if you worked with any of the family members that owned that dealership in rochester (The Whitings) cause it would explain some things to me

JasonM, I was curious to know what you think of this GMS stuff, how are sales going? I was talking with the sales manager at Key B-P-G and he hasn't gotten the best out it cause the towns and cities around him are lived in by "used car people". Our lot is pretty much land of misfit toys (old demos and Yukons and XUV's). We're at the point of swaping cars that haven't even come in yet. If you ever see anything ya need from DD's Columbia, call Dennis, he'll pretty much swap anything.

Last edited by Supergrobo82; 07-26-2005 at 11:51 PM.
Old 07-27-2005 | 01:12 AM
  #114  
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Re: Banned in Wilmington

Not familair with the people you mention. Beware the payback from GMS. Remember what goes up, must come down. If dealers, anticipating a downturn, do not order sufficiently, the losses in the third and fourth quarter will make the second quarter seem small. The euphoria may drop faster than the transactional price of an SSR. GM still suffers from short term thinking.
Old 07-27-2005 | 10:37 PM
  #115  
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Re: Banned in Wilmington

The intoxication of GMS is ending. Time to break out the Alka Seltzer and Aspirin, the hangover is here.
Old 07-28-2005 | 07:46 AM
  #116  
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Re: Banned in Wilmington

Originally Posted by Buickman
The intoxication of GMS is ending. Time to break out the Alka Seltzer and Aspirin, the hangover is here.

Word is that GM may be FORCED to end the GMS pricing on the scheduled Aug 1st (no extention).... simply because they don't have enough stock on hand to viably continue.


In-stock daily supply for GM overall is at a roughly 45-day supply.

Ford and DCX are around the mid 70's.

"Healthy" is considered around a 68-day supply.


So, in conclusion, it would seem the program worked very well.

If there is a "lull" starting in sales, that is only to be expected when your available supply drops considerably because you have sold so many vehicles.

Many customers who have shopped for a GM vehicle recently simply can't find a model with the options the want... otherwise they'd have made the purchase.
Old 07-28-2005 | 03:09 PM
  #117  
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Re: Banned in Wilmington

Guess we "cut" prices too far. If GM had put rational, proven strategies into effect instead, we would have sold just as many '05's, but in a more orderly fashion. Said strategies would have made the transition to '06's smooth, and without huge production reductions.
Old 07-28-2005 | 03:28 PM
  #118  
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Re: Banned in Wilmington

Originally Posted by Buickman
Guess we "cut" prices too far. If GM had put rational, proven strategies into effect instead, we would have sold just as many '05's, but in a more orderly fashion. Said strategies would have made the transition to '06's smooth, and without huge production reductions.

Perhaps.

Even GM has stated that the response to the program far exceeded their expectations...

It's kind of interesting that you could have "too good" a response to a program.

Though, in the long run, it's good that the higher priced 05's will be all but gone when the lower priced 06's arrive.
Old 07-28-2005 | 07:56 PM
  #119  
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Re: Banned in Wilmington

We're in for a world of hurt in the third quarter. The new truck product won't hit til after New Year's, the Lucerne and Solstice won't be available in any numbers. Dealers are being cautious on '06 orders. Get ready for the bloodbath of red ink.
Old 07-28-2005 | 08:37 PM
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Re: Banned in Wilmington

Originally Posted by Buickman
We're in for a world of hurt in the third quarter. The new truck product won't hit til after New Year's, the Lucerne and Solstice won't be available in any numbers. Dealers are being cautious on '06 orders. Get ready for the bloodbath of red ink.

Buickman - Since this GMS for all pricing, how much did your chevy store's sales change from last year? If you could provide percent changes for May, June and July over last year I would appreciate that. Lets just say I have a theory.

Last edited by evok; 07-28-2005 at 09:01 PM.


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