As more dealers improve their Internet sales processes, close rates are increasing quarter over quarter. By popular demand, we’ve ranked our top dealers by close rate for 2Q04 in the Eastern, Middle, and Western U.S. Two dealerships, in particular are standouts, having made the top 10 list each of the three times we’ve published this ranking. They are Bernardi Honda and Jeffrey Honda. Congratulations to them and all the Internet sales professionals who helped their dealerships make these lists. Great job! 

# 1 in the Eastern US – Bernardi Toyota Scion of Framingham, Massachusetts

Winnie Henchey, Internet Sales Manager

How Bernardi’s Internet Department Works:

“The Internet department is a separate entity at Bernardi,” says Henchley, “but works in conjunction with the New and Pre-Owned sales departments to maximize every opportunity that comes into the showroom. The objective of the department is to pre-qualify customers, set firm appointments and sell units. The department is responsible for responding to every inquiry we receive from a myriad of sources. We often serve as a ‘personal car shopper service’ assisting customers in determining the right vehicle, color, and price that meets their objectives. Special consideration and pricing are given to all our valued Internet customers. Upon entering our showroom, the customer is greeted by an Internet representative who then introduces them to the appropriate sales person for disposition. Typically, the customer has already decided on the vehicle and features they want, as well as a fixed price. We make the car buying process less intimidating and more pleasurable. At Bernardi, repeat and referral customers are the mainstay of our business and we do everything possible to ensure the program’s success.”

% of Bernardi’s Total Sales that Are from the Internet:

15%

Gross from Floor Sales vs. Internet Sales:  

“We’ve found that our grosses from Internet sales are approximately comparable to our floor sales.”

Forecast for Bernardi’s Internet Department:

“As a new department, we are in the process of benchmarking the Internet sales forecasts. Upon completion, we will set forecasts to plan year ‘05. In terms of our overall goals, our objective is to drive traffic, set quality appointments, hold gross, and raise the overall percentage of Bernardi’s sales.” 

#1 in the Middle US – Rosen Honda of Gurnee, Illinois

Dave Handel - Internet Director 

How Rosen's Internet Department is structured:

“I have dedicated Internet sales managers who handle the entire process from inquiry through delivery,” says Handel. “Nothing can be accomplished without a great team. You need an owner who believes in the Internet as an important advertising tool. Everything starts with Mr. Rosen and drifts down to my staff. Phil Kwiek and Chris Petranech have done an amazing job. They work long, hard hours at the store and from home. Their dedication to the sales process and follow-up is unbeatable.

Process, people and a good lead management tool are the most important factors. Our process includes an auto response, and six additional contact attempts (three e-mails and three phone calls) within the first seven days. Our emails are professional, yet ‘soft-spoken.’ If there is no response, the lead is placed in a folder that is bulk-email enabled. We send out two bulk e-mails per month – not too many and not too few.

Follow-up can’t be overemphasized. The average purchase time from the initial Internet inquiry is 60-70 days. For every deal you close in 2 days there is one you can close four months down the road.”

% of Rosen's Total Sales that from the Internet:

“25%-30% currently. I expect this number to reach 35% within the next 12 months.”

Gross from Floor Sales vs. Internet Sales:

“Front-end gross is somewhat less than the floor, but total gross is very similar. Keep in mind that Internet cost/sale is only $175 as compared to about $450 for the floor. The $275 difference can be viewed as additional gross.”

Forecast for Rosen's Internet Department?

“We are currently selling 200 units/month and hope to be at 300 units/month by June 2005. I will continue adding lead providers and Internet sales managers (ISMs) in a structured fashion. One year ago I had five ISMs - today I manage 14 dedicated ISMs.”         

#1 in the Western US – Capitol Toyota of San Jose, California

Tareq Samaha, Internet Director

How Capitol’s Internet Department Works: 

Capitol has one Internet director and five dedicated Internet sales managers, all solely dedicated to Internet customers.

% of Capitol’s Total Sales that Are from the Internet:

“28% are from the Internet. We did 96 last month.”

Gross from Floor Sales vs. Internet Sales:

“This changes from month to month, sometimes Internet, sometimes floor. Average gross is $900 on front, $1400 on back.”

Forecast for Capitol’ Internet Department:

“To do 100 sales per month, and generate at least $150k.”

About the Study
The Dealix Dealership Close Rate Index^SM is a weighted index based on the number of Internet sales leads that are generated from the Dealix Lead Trading Platform^SM and result in a sale.  Primary data is derived from email and phone surveys conducted on consumers that Dealix Corporation delivers to its dealer partners as Internet sales leads. The smallest sample size per dealership was 50 surveys.  This study does not represent data for all dealers, nor does it claim to state close rates for dealers and Internet leads not included in the study. This report is brought to you by Dealix Business Intelligence^SM (DBI).