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5 posts
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jeff2954
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We have a client who wants to know how much he should spend on advertising based on his sales goals... Does anyone have any experience/insights in this area?

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gary4348
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3-7% (Depending on how agressive he wants to be)

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walterbriggs
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There's an industry rule of thumb that pegs it around $350 per car, give or take. Basing it on a sales dollar goal is tricky because you have to factor in whether he makes a profit on the car, on the back end, the trade (or none of the above.)

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gary4348
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Ford Corporate places a test drive at $250.

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ADwerker Jim
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Most car dealers belong to "20 Groups" -- 15 to 20 dealers of similar size in non-competing markets -- who share info like this. Your dealer should be able to get info from there. You will some some variation from market to market based on media costs, but it will give you a good starting number. And you may want to go with the the client to a 20 Group meeting, it's a good way to learn what really drives their business. For a used car client of ours with 48 stores in 12 states the average is $250 per car sold.

I was at the National Alliance of Buy Here Pay Here Dealers meeting last month and dealers reported wildly differing amounts from less than $50 to more than $500 per car.

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