Summer Slowdown? Not So Fast

Combine high gasoline prices, the much-publicized struggles of US auto makers, and the arrival of summer, and what do you get? A ton of news stories all speculating on how manufacturers, dealers, and consumers are going to cope this season.

Ultimately, you’re in a better position to answer this question than these writers, but don’t you want to know what the pundits are saying? Let’s take a critical look at some of the industry news coverage.

“Don’t Expect a Repeat of 2005”

This May 30 story in the Chicago Tribune notes that OEMs seem reluctant to match last summer’s deep discounts. Disappointing results for June and/or July could force their hand, reasoned the reporter, but by then it will be too late to have a strong season.

“Price War Coming”

A few days later, May’s numbers had come in, and they were soft, fueling expectations that manufacturer’s would cut prices sooner rather than later. This June 9 Reuters story focused on a rebate offered by Ford and whether GM would match it.

“Price War Here”

And match it they did. On June 26, GM announced 72-month 0% financing for most models. The incentive won’t run all summer, though; only through July 5.

“Look for More Incentives”

Here, in a story reprinted from the Wall Street Journal back on May 2, there’s a little more focus on what interests us the most: you and the ways you have control over your business.

Here’s our take. Gas prices are going to do what they’re going to do. OEMs are going to do what they’re going to do. What consumers do, by contrast, is something you can influence in many different ways. $6000 worth of gas—that’s what a dealer in the story above was offering with certain purchases. Whether or not that leads to more sales, it’s probably brought the guy some good publicity, much like GM’s $1.99 gas cap for customers in California and Florida.

But the Internet side of your business should be offering some valuable incentives already, at a much lower cost to you. We’re not talking about incentives that you publicize on your website, though those are certainly fine. We’re talking about the incentives that your website and supporting business processes should provide in and of themselves:

• Up-to-date inventory list
• Complete vehicle information
• Detailed photos
• Prompt responses to all inquiries
• Thorough phone and email responses
• Price quotes on request
• No-hassle buying experience

There are always going to be factors outside your control that can put a dent in your business. The investment you’re making in Internet retailing is a key way to differentiate yourself from the many dealers who want to do things as they’ve always been done—and to attract the growing number of customers who want to do things a new way. For you, slow times won’t be so slow, and good times will have never been better.