Auto Dealer Monthly

NOV 2012

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

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Young military buyers, typically aged 18 to 22, don't necessarily have to settle on pre-owned vehicles. Andrade said the Chevrolet Sonic is a popular new model for many of the newly-en- listed Fort Bragg soldiers making as little as $1,500 a month. The base model is $14,000, but it comes nicely-equipped at $16,000 or $17,000, the Internet sales manager said. Many military lenders work within such parameters. Retailers' special treatment of the military can reach further than just those who wear the uniform full time. Andrade said Bleecker's red-carpet treatment applies to "any and all mili- tary members." That means retirees and reservists, too. "We have lots of retired [military] that stick around." In fact, there are about 70,000 former military living in the four counties straddled by Fort Bragg. Market, market, market But all the military deals and special treatment in the world mean nothing if the targeted buyer is left unaware of what a dealership can do for them, Thomas argues. If done correctly, mar- keting to the military has rich rewards. Thomas said about 75 to 85 percent of his dealership's business is from soldiers, while Andrade estimated anywhere from 35 to 45 percent of Bleecker Chevy's sales are to current and former military personnel. "Deal- ers who aggressively market to this group and treat them right when they come to their stores benefit," Thomas said, making note of a handful of predatory dealers near bases who sometimes give the industry a black eye. "The military is a special niche group. They are buying cars away from home from dealers they have never heard about, so it is essential that dealers market themselves as being military-friendly." Andrade said his dealership regularly advertises in nearby Fayetteville, N.C., newspapers, offering special promo- tions for military buyers. Thomas said marketing on urban radio in southeast Georgia has worked well for his store. And in any ZIP code, pushing special military deals can be especially popular around Veterans Day, as can sponsoring military-related events. "Part of my success is focusing on strong referral incentives," Thomas added. "Because their fellow service members are like their extended families, it is easy for them to encour- age a friend to purchase a car from us." Veterans also comprise a large part of his sales staff, offering a built-in connection to soldiers. Again, it's not just the GIs in uniform who can bolster a dealer's bottom line. According to the U.S. Census Bureau, veterans generally earn about $10,000 more annually than the average American. "There's a signifi- cant opportunity with veterans," said Rimas, who recently purchased an innovative marketing tool called TroopID, a creation of TroopSwap that allows retailers of all types to connect their brand to the military niche online. Through its CRM function, TroopID gives Rimas insight into the buying behavior of segments of the military community. Using that data drives loyalty and offers an opportunity to show the dealership's affinity for the military around San Antonio. "We made the investment for a lot of reasons," he said. "It's working pretty well." In fact, as much as 50 percent of Red McComb's business is from those in uniform or veterans. With billions of dollars in buying power out there, Thomas encourages dealers near outposts, where the highest concentrations of current or ex-military reside, to perpetually market themselves to the armed forces community. There are always new potential buyers as service members rotate assignments every two to three years. Despite the transient nature of the military, it has its advantages. "I like the military people because of their steady income," said Mike Mitchell, general manager of Last Chance 22

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