As car sales have plummeted over the past year, auto dealers are using different tactics to attract clientele from participating in community events to boosting advertising online. Although Galpin Motors in North Hills is the No.1 Ford dealer in the nation, the dealership has been hit hard this year due to rising gas prices and the general economic downturn. Since gas prices began to soar in 2007, business at the dealer has dropped by 50 percent, according to Galpin President Bert Boeckmann. “I would say in the last three weeks things have been extremely rough. Business has been taking a real drop ever since we’ve gotten negative economic news regarding what’s happening around the state, around the world,” Boeckmann said. Part of the drop in sales is related to the number of trucks and SUVs Galpin carries from GM, Chrysler and Ford. “We’re just beginning to see some of the truck business returning,” Boeckmann said. Galpin has been trying to boost sales by participating in more community events, being featured in car shows, sporting events and other activities. At Bob Smith BMW in Calabasas, sales have declined by about 15 percent this year. President Tim Smith has explored different strategies to motivate customers to buy cars. “First of all, we’re making sure that all our marketing methods are being done as well as we can,” he said. “In other words, we want to pursue every prospect out here, whether it’s through the Internet (or other avenues).” <!– Owner: Galpin President Bert Boeckmann reports sales are down 50 percent. –> Owner: Galpin President Bert Boeckmann reports sales are down 50 percent. Smith said that the dealership has prioritized responding to all online inquiries about its fleet. Moreover, Bob Smith BMW keeps a database of all customers or potential customers. Those in the database are regularly updated about developments at the dealership. “We’re following through with them, keeping our communications open with them,” Tim Smith said. According to Sherman Oaks publicity firm Garrett & Associates, automakers have spent an average of 18 percent less on advertising expenditures in 2008. To stretch the limited advertising budgets available to auto dealers, Garrett & Associates Vice President Tom Garrett formed an agreement with the Southern California Cadillac Dealers Association to engage in a grassroots marketing campaign. The campaign entails raising awareness about the 2008 Cadillac CTS by placing the Motor Trend’s Car of the Year in the lots of upscale eateries. “When guests pull up to the restaurant, we’ll have a new CT for them to view,” Garrett explained. Upon exiting the establishment, guests will receive a note telling them that their valet parking fee has been paid, courtesy of Cadillac. The strategy makes guests more likely to check out the CTS positioned in the lot. Garrett said that the rocky ride the automotive industry has been on financially inspired him to develop the idea. “Right now, not as many cars are being sold, and that directly affects advertising budgets. Companies are going to have to think outside of the box to do the same amount of advertising,” he said. “Traditional (advertising) has gotten more expensive and less effective. Those two reasons led me to investigate a more sustainable approach to advertising.” At present, the marketing campaign Garrett has developed is a pilot program for Cadillac. If it is well-received, the campaign will be expanded into a continuous program. Garrett said that he is unsure whether the new marketing campaign has specifically led to sales. “We have had people look at the car, and they have information on the car posted. They’re directed to the local dealer,” he said. Garrett likens his concept to a dealer advertising on a billboard. “A billboard for $30,000 a month sits in the community and doesn’t really offer anything other than the company’s message,” he said. “What we’re trying to do is take the advertising budget and enhance their individual experience while still communicating and advertising their message. This is actually cheaper for the advertiser, and it really does improve individuals’ experience through the advertising.” Garrett believes that the decline in car sales coupled with the decline in car advertising is a vicious circle. In order for the industry to sustain itself, new methods have to be implemented to sell cars, Garrett feels. “When a company sells fewer cars, they have less money to advertise, and if they do less advertising, they sell fewer cars. That leads to a point where something has to change,” he said. “That’s an unsustainable path. The further along that cycle goes, the more inventive car brands are going to be. I think ultimately it can be a positive impact on the automobile industry and for consumers as well.” In addition to advertising, Brian Maas, director of government affairs for the California New Car Dealers Association, believes that customer service is key in boosting sales. He described auto dealers as being “extremely resilient,” noting that they’re always looking for new and better ways to serve customers. “The challenge in tough economic times is ensuring that if customers are coming into the store, they get the best service they can,” Maas said. “The issue right now frankly is consumer confidence and how people feel about whether it’s a good time to purchase a car… There’s a broad range of choices across dealerships. Financing is available. Certainly dealers are ready and willing to work with customers and put them in the best vehicle for them.”
