Pub. 2 2012 Issue 2

10 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com added value to your customers, such as warranties, service and overall satisfaction. Those details alone will add to your bot- tom line down the road. Contrary to common perception, customers will not go al- most anywhere just to save a buck. In a 4-year study conducted by BIGresearch, most customers will put service ahead of price, if you give them a chance. Customers see price as only one component of the bigger picture of “value” that includes the service, information and follow-up they receive. Increased access to the internet and inventory programs (such as Vauto) have leveled the playing field on automobile pricing. With price out of the picture, the consumer will look to other components that are perceived as value. Wouldn’t you close a higher percentage of prospects if you presented a greater value in aesthetics or warranties to the consumer? Would it be wise to invest in your inventory? Businesses that spend money intelligently make more profits. Considering that used cars produce the highest profitability to a dealership, cutting costs on the appearance and warranties of that segment of your business is not an option. According to Kel- ley Blue Book, aesthetics is one of the top considerations when a person buys a car. Consumers want and deserve the same con- Kurt A. Karlson, President, started Illinois Auto Group (IAG) in 2006; it currently consists of two divisions located in the Chicago metropolitan and Central Illinois areas. The company provides a premium interior/exterior reconditioning service called the “Total Lot Management System” (TLM). The service turns used car inventories for new car dealers into a competitive advantage with an award-winning, nationally proven program. This is done by using Proprietary Processes, Certified Warranties, Sales Development Training and an exclusive Service Lane Program, all targeted at delivering the consumer a better car buying experience. IAG promises their dealers that they will sell more cars, sell them faster and for more money besides creating additional revenue centers! For more information, call 1-877-644- 4IAG (4424) or visit the web at www.IlAutoGroup.com .  way to success — continued sideration on a used car that they receive with a new car. Again, will these expenditures return more money than I have invested? A prospective buyer is going to appreciate and will pay more for a car that looks good, one that’s shiny and clean on the outside and one that smells good and looks good on the inside. Psycho- logically, a used car in good condition is extremely important to the consumers’ perception of value and reflective of the overall care your dealership provides. When a warranty is added to an already great appearance, the consumer is going to get the best bang for their buck, even if they paid more initially. Cutting costs can be beneficial. However, before you “slash and burn,” consider carefully if cutting a cost will decrease the value your customers perceive and the profit margin the dealership receives from that service. Don’t compromise on product quality to save money. In the long run this will dam- age consumer confidence and may actually constrict revenue and growth.  Insurance coverages and non-insurance products and services are underwritten and provided by individual member companies of Zurich in North America, including Universal Underwriters Insurance Company and Universal Underwriters Service Corporation. Certain coverages, products and services are not available in all states. ©2012 Zurich American Insurance Company “My focus is running my dealership—not worrying if my business is protected or how to generate income in my finance department. Zurich lets me do that.” One insurance company for your business insurance and F&I product needs In 2011, more than 1,300 dealerships purchased both business insurance and F&I products from Zurich. Products such as our Unicover ® policy, which packages most of the coverages needed by dealerships into one policy. Or our Streamlined Selling System ® , which can help you drive increased F&I profit. One company for all your needs, backed by 90 years insuring dealerships. Call Jeff Dian, Regional Sales Manager, at 630-215-3892 or visit www.zurichna.com/SDA1 for more information. Visit FandIResourceCenter.com to register for our complimentary on-demand webinar – “Six Principles of Success in the New Economy”