Let the good times roll

Many pundits are saying that the recession will linger because consumers will continue to limit their spending even after the economy rebounds. Recent research conducted by Acxiom Corp. says this might not be the case. Their study describes 36% of consumers as "potential rebounders" who will begin to spend again as soon as the economy shows signs of recovery. Another 46% fall in the "status quo" category. These people plan to maintain their current level of spending as they have through the recession. Only 18% are "digging in" and planning to reduce their expenditures. This is good news for our advertisers. All three of these groups are "opportunistic" and are receptive to offers that will save them money. This is more proof that now is the time to advertise.

Keep Smiling, Keep Selling!

Thanks Jim Busch

Auto Rebound

After 2 dismal years the auto industry is poised for a rebound. Both J. D. Power and CSM are projecting a minimum of a 15% increase in new car sales over 2009. Bear in mind that many dealerships closed in this period so the surviving dealerships should gain even more. Dealerships should begin to advertise aggressively now. The dealers who reach out to consumers are going to get the lion's share of this new business. This could be the difference in making up their recession losses or going deeper into the red. Their ads should focus on giving value to the consumer and on the stability of the dealership.

Keep Smiling, Keep Selling!

Thanks Jim Busch

Swimming against the stream

A local Pittsburgh auto dealer has decided to skip the current recession. At a recent Media Association of Pittsburgh meeting Mr. Jim Shorkey explained how he has consistently broken sales records for the past two years. When the auto industry started to slow down he ramped up his advertising. At the meeting he said that when he was told that US auto sales fell to 17 million, he said "Great, I want my share of that 17 mill!" As the local market began to shrink, he almost doubled his budget. By increasing his share, he maintained his profitability. At the same time he enhanced his sales compensation plan "because closing is harder in a tough market." When KIA USA told him that the Pittsburgh market couldn't produce the volume to support a large advertising investment, he decided it could. After 3 months he had doubled his sales and within a year he had the highest sales per capita of any dealer in the nation. Mr. Shorkey spends about 70% of his budget in print with the remainder divided between radio and TV. By refusing to buy into the economic hysteria spread by the national media and following a sound business strategy, Mr. Shorkey has proven the wisdom of advertising when times are tight.

Have a great Thanksgiving Day. Keep smiling, keep selling.

Thanks Jim Busch