Jeff Sacks Quotations

First, dealers are ignoring their best customers. They are spending 80 percent of their time on walk-ins, which only result in closed sales 20 percent of the time.

Shower attention on a customer who owns a car with eighty thousand miles on it because he or she is much closer to a new car purchase.

Over 60 percent of all dealership costs are personnel related.

During these first two years, maintenance revenue per vehicle is $150 to $200.

We?re seeing that some dealers are getting their best customer responses and better sales through the internet. Dealers are spending more on internet advertising, but they?re also getting more for their money. Internet advertising is increasingly replacing traditional newspaper advertising.

By contrast, dealers spend 20 percent of their time on referrals, be-backs, and repeats, which result in closed sales 50, 67 and 70 percent of the time, respectively.

At most dealerships, the incentive system is stacked in favor of the new customers.