Maybe it is because I’m in the realm of advertising, but have you noticed how much more good video you are seeing on your screens?  From the big flat screen TVs to improved personal devices, the bigger picture frame is being filled with what I call ‘broadcast quality’.

This isn’t to say the grainy-look of YouTube videos will disappear, but when you watch the national TV ads promoting the newest phone or pad, they show the crispest images on those devices you will ever see.

Make sure what you are delivering to your customers is the best it can be, especially if you want it viewed more than ‘one and done’ viewership.

-JPS

Looking into the crystal ball (but only after reviewing consumer habits from last year), my prediction is even more on-line shopping for the holidays – probably at levels never seen before!

With this in mind, now is a good time to look at your dealership website – not as a dealer or manager – but as a consumer who is on the hunt and will be clicking away at a feverish pace.

Upgrade the banner ads to reflect the excitement of a new model year ad vehicle; plan a parts department promotion for factory apparel; and put some pressure on the Photoshop guys to get a picture of your dealership that makes it look like Disneyland!

-JPS

My weekly reading material seems to have one common theme – the price of used vehicles is in a cycle of change.

There has been  a downward trend for all segments, and even though the experts see it as a seasonal adjustment year-to-year, it merits close attention.  The inventory shortages of this summer and early fall are hopefully a thing of the past, and new 2012s including some totally redesigned best-sellers will be on the lot shortly.

This could result in an adjustment of used pricing we have not seen before based on the late arrival of 2012s.  It’s nothing unusual to be walking the tightrope of proper inventory balance – make sure your used car managers are staying on top of your market’s direction; they are your safety-net so hold them accountable.

FaceBook’s Mark Zuckerberg rolled out a host of new features yesterday at f8, their developer’s conference. The most notable is Timeline – the replacement of the standard profile that shows the history of your experiences on FaceBook.  How Timeline will affect the look of your dealership’s page remains to be seen, but expect it to allow for more design personalization.  A large headline picture is just one of the highlights of a standard FaceBook user’s new Timeline.

Zuckerberg also introduced their new Open Graph technology giving FaceBook apps the ability to automatically post what you’re doing, listening to and watching in real-time.  Privacy hawks will have a field day with this and Zuckerberg’s use of the phrase “real-time serendipity.”  Over the next few weeks, expect the tech blogs to show users with privacy concerns how to turn off the new real-time features to prevent “over-sharing.”

What does all of this mean for your dealership? We don’t really know yet. Pay attention to your Facebook Insights data over the next few weeks for any significant changes. You may need to adjust the time or frequency of your posts to make sure they’re still getting through to the users who “like” your page.  Also, be aware of any sharp downturn in your overall impression numbers. Some in the social media blogosphere opine that the new Facebook features are so stark that people will use it as an excuse to flock to Google+ (You should already have a G+ page, but that’s another post for another day).

The one thing we know with Facebook is that change is inevitable. What we don’t know is just how people are going to react. As you continue to interact with your Facebook fans, be ready to make adjustments to ensure that your dealership’s presence continues to make an impact.

J.D. Power and Associates Reports:
September New-Vehicle Retail Selling Rate Shows Marked Improvement from August

WESTLAKE VILLAGE, Calif.: 22 September 2011 — New-vehicle retail sales for September continue to improve, with the selling rate expected to be much stronger than in August, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

Retail Light-Vehicle Sales
September new-vehicle retail sales are projected to come in at 842,400 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.3 million units. This marks the first time the retail selling rate would be above 10 million units since the 10.8 million-unit rate in April. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“Coming off a solid Labor Day sale, retail sales exhibited unexpected strength in the second week of September, as the recovering inventory levels have helped to bring buyers back into the market,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “However, incentive levels remain flat compared with August and the economy remains a concern, so the sales pace in the second half of the month is expected to give back some of the gains.”

U.S. Retail SAAR—September 2010 to September 2011
(in millions of units)  

Total Light-Vehicle Sales
Total light-vehicle sales in September are expected to come in at 1,038,700 units, which is 9 percent higher than in September 2010. Fleet sales are expected to be down 1 percent compared with last September, but will account for 19 percent of total sales.

J.D. Power and Associates U.S. Sales and SAAR Comparisons

¹Figures cited for September 2011 are forecasted based on the first 14 selling days of the month.

Sales Outlook
Given the relative strength of September, J.D. Power is maintaining its forecast for light-vehicle sales in 2011 and 2012. Total light-vehicle sales for 2011 are expected to come in at 12.6 million units, a 9 percent increase from 2010. Retail light-vehicle sales are forecasted at 10.2 million units for 2011, an increase of 11 percent from 2010.

For 2012, the outlook for total light-vehicle sales remains at 14.1 million units and retail light-vehicle sales are at 11.5 million units. However, there is a high level of uncertainty that remains.

“The uncertain global environment, specifically the debt troubles in Europe, continue to be the major source of downside risk in the U.S. economy and automotive markets,” said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. “Until a level of stability is reached globally and consumer confidence is returned, the U.S. automotive selling pace is not expected to return to pre-recession levels.”

North American Production
Through August 2011, light-vehicle production in North America has increased to 8.5 million units, up 8 percent from the same period in 2010. The Detroit 3 OEMs have increased production by 16 percent year-to-date, while the Japanese manufacturers have lost 8 percent—due to the parts shortages from the earthquake in Japan back in March. European OEMs are up 38 percent for the same period, as a result of added production of the BMW X3 and Volkswagen Passat in North America, as well as strong demand for the new Volkswagen Jetta.

Vehicle inventory maintained a 49-day supply at the beginning of September, unchanged from August. Car inventory remained at the same 40-day level as it was in the previous month, while truck supply edged down by one day to 57 days. With stronger production levels and imported shipments returning, inventory is improving—although several manufacturers continue to have limited supply availability: Hyundai/Kia with a 21 days’ supply (was 19 days in August), Honda with a 32 days’ supply (previously 28 days), and BMW at 33 days’ supply (previously 30 days).

The 2011 North American production outlook remains on track for 12.9 million units, an increase of 9 percent from 2010. Fourth-quarter 2011 production output is expected to reach 3.3 million vehicles, which is an increase of 11 percent from the same quarter in 2010.

“Continued inventory stock replenishment and Japanese OEM recovery is responsible for the large year-over-year increase relative to the lower level of recovery in vehicle demand,” said Schuster. “As inventory normalizes into 2012, growth in production levels is expected to slow to a pace more consistent with sales.”

Entire press release from J.D. Power and Associates here.

This is a real tip of the hat to everyone in this business who has waded through the litany of lousy weather, congressional stupidity, and national headlines of seemingly endless doom and gloom this past year.

But if you’re looking for something to rally the troops, it has to be all of the positive talk about the 4^th Quarter turnaround, definitely spurred by normalcy with inventory levels.  Now we’re hearing talk of an incentives war among the OEMs.

The age-old adage about ‘tough times don’t last; tough people do’ could be a rallying cry as the weariness of these past few months turns into a rock ‘n roll 4^th Quarter.   When that balloon of pent-up demand pops, be ready!

-JPS

I mentioned football schedules on Friday and the impact they can have on traffic.

This is a reminder to look at October, November and December and plan ahead.

•October has 5 Saturdays with Halloween falling on Monday the 31^st.

•There are five full sale days after Thanksgiving.

•December 24^th and 25^th are a Saturday and Sunday.

The decision is how to treat Monday, December 26^th – many businesses will be giving their people the day off – so you need to see if you take advantage of that fact.

One important item to check:

•Make sure your broadcast schedules cover that weekend leading into the last week of the year.

Every weekend all across the nation millions of people are setting their schedules…around the football schedules for high school, college and the pros. And without fail, your market is going to have one or two weekends this season where scheduling a sale event at your dealership is a futile effort to stir up traffic.

On the flip side of the coin, there may be a weekend where the local favorites are on the road or have a cupcake game that literally ‘opens’ up a day of shopping for these football fanatics.