Through the Eyes Of the Bold, Part 2

It's a bird, it's a plane, it's. . . commercialman! Here's more opportunities for the bold!

Yesterday I talked about buying old units from other dealers and how to make thousands of dollars of profit in the process. Today, I want to talk about the opportunities you have with bailment pool body companies.

Many body companies are hurting right now and flooring expenses is very hard on them. When dealers are reluctant in a soft market, the body companies are just holding on and hoping for change soon. They have to carry inventory, although they will carry less than normal, so they have flooring issues as a result. They can only sell the trucks to a dealer, so if the dealers don't buy, it is not good news for them. However, this is an opportunity for you! Cha-ching! Cash machine!

Because you understand this market and how to sell effectively in it and to take advantage of grand opportunities--like this market, the body company scenario is an awesome deal for you. So, here's the plan:

You take a really good look at the flooring inventory that each of the pools in your area has. Get a list. They will give it to you. They want to move the trucks. Now, think about your mix on the ground, and what your basic turnover needs are. Next, think about a marketing program that you can put together that can increase number sales in a relatively short time frame based on a particular marketing strategy you have. Next, determine how long you think you will have the units once they are built and on your lot. See if there are any flooring calculations necessary. Next, feel out the body company for deals. It's the 'if I could, would you' game. Not that you would, but if you could. The goal you need here for the maximum deal is the largest numbers of trucks and profitable bodies on the chassis that they want to move the most. Nobody makes much of anything on a plain flatbed, so don't look for some crazy deals there unless you package some nicer bodies with it.

Let me pause for a moment here and state that we are not trying to rip the body company off. On the contrary, they are our partners and we are going to benefit the body company in a very good way. They need sales and profit and so do you. This will be a win-win-win situation. You will be going for the best deal that you can so that you can do your best job of marketing and return on investment for the dealer. I guarantee you that the body company will be excited about this deal.

So, here's an example of what I'm talking about. I'll give you one as if I'm a Ford dealer right now at the start of September, 2008. I would take a look at the typical body companies lists and ask them what they need to move the most. They won't be shy telling you. I would look to replace a few pieces I've recently sold, to add a few more unique pieces and to put together a marketing campaign targeting the fourth quarter and what I think is going to be good here. First, I want some extra van bodies because they will be increasing in sales going into the Winter and until Spring. I will want a mix of a couple 12' dually on 138" cutaway chassis, 14' on 158" cutaway. Both are E350 models. I want a couple of 10' single rear on cutaway. I want to get a 14' with a side door with roll up door, and a Tommy Aluminum Railgate (an easy sale at gross). I could also use a plumber body on a cutaway.

Next, I want to get 4 cheap plain 12' flatbeds on F350 gas chassis to use as 'loss leaders.' I am up to 11 so far. Now, for my marketing campaign, I need some switch pieces, so I will order two unusual Contractor bodies: one 10' on a crew cab dually and one 10' on a super cab dually. The body companies have a pile of F34 single rear wheel units, so I will order a few of them with some unique bodies that I can market that no one else will have. I will order one with a transverse compartment all the way through at the front with a long sliding drawer that will pull out both directions. I will order the locking system and maybe some drawers.

Next, I will order a horizontal series compartment on one side on two units. Next, I will order a low pro service body with a 3-piece cargo bed enclosure, and last I will order 4 gas standard bodies, two with rack and hitch preferably F250's with 8' bodies. That is 21 units total. This would be a good package to put together for an average sized commercial dealer who normally carries around 30-40 upfits. This marketing campaign is designed to be approximately 90 days and may run as long as 120 or as short as 60.

Next, I work out the best deal I can get on the package through the fewest body companies I can. This way they get more units out of their pool and have more motivation to help with the deal. I'm not just looking for price concessions, I'm looking a flooring assistance should I need it. I want to get all of the units as fast as possible, so I can begin my marketing campaign as they are in transit.

In this campaign, I will advertise price on the cheap flatbeds, along with attractive payments and do the same on the plain single rear wheel F34's. I will send HTML email announcements to my email database, flyers to my mail database, along with a couple of ads in the sports section of the newspaper and banners and pricing on the vehicles. I will have a special display and other attention getting features. I will sell them all before any flooring is necessary. Why? I know my market even today. I have courage and vision. I know how to get a great deal so I can advertise at a number that other people say there's no way and make a nice profit at the same time. I know how to merchandise my lot and I know how to market my trucks.

This will be a very successful campaign. After it is done, I will have put together my next one the same way, though I might have a different strategy for the choice of product. I will always have a mixture of price leaders for the 4% price buyer and to get the attention of the 100% price visual and unique profit pieces that I can market that no one else has. Through the eyes of the bold are nothing but opportunities.

More tomorrow!

No comments: