How Much is Advertising and Marketing REALLY Costing your Dealership
Many owners do not realize how much time and money is spent on advertising and marketing activities. You may be spending much more than you realized.
Meetings with Advertising & Marketing Vendors
Avg 6 Hrs/wk @ $167/hr = $1,000/wk
Based on a manager salary of $10K /mo 60 hrs/wk
Marketing & Advertising Activity and Meetings are a distraction for managers which result in profitability.
(2) missed TOs/wk @ $4,000 each = $ 8,000 / Wk
15% Reduction in Traditional Media Expenditure
All commission returned to client.
Based on a budget of $25,000 less 15% each month
Administration Time for Co-op & Invoices
Avg 15 hrs/mo @ $25/hr
One Month Management Expenditure: $ 47,025
This total does NOT include actual monthly traditional & digital ad and marketing expenses.
A monthly advertising/marketing schedule of $ 25,000 and $47,000 in management cost can cost a dealership $72,000 /mo or $ 864,000 per year.
Advertising Agency Fees
Avg of $ 4,000/mo for example
Invoice Errors and Discrepancies
Range from $1000/yr to upwards of $10,000/yr +
Avg of $ 400/mo for example
Denied Co-op Claims
Missing just one claim or failure to submit proper documentation can cost a dealership thousands
in additional marketing & advertising funds.
One month of missed co-op from $2000 to $10,000.
Avg of $ 2,500/mo for example