Sales Pro Tip: Stop Leaving Co-Op Dollars on the Table!
Did you know there’s a very good chance that you have free advertising dollars available to you that you’re not using? We’re talking about co-op advertising dollars. Sure, you probably know what they are. But like many dealers, you may not know the amount you qualify to receive, how to use them or why they’re such a great resource.
How Co-Op Advertising Dollars Can Make a Big Difference
Many co-op programs will allow you to spend your earned credit on several different types of marketing campaigns. These include, but are not limited to, radio spots, TV ads, mailed flyers, social media banners and newspaper promotions.
Some OEMs limit reimbursement to campaigns geared toward new cars. But others will allow you to promote used car sales as well. Certain OEMs will even compensate you for the purchase of sales leads. Just think of what this could potentially do for your sales department!
Have you ever had a great idea for a marketing campaign, only to scrap your plan because the cost would be too high? What if the cost of that campaign could be cut in half with co-op dollars? Again, this is free money that will simply disappear from the table if you don’t put it to use.
Navigating the Challenges of Co-Op Programs
It wouldn’t be an exaggeration to say that some dealers have built the foundations of their success on co-op advertising dollars. Still, it’s easy to see why many dealers have shied away from co-op programs. They can be incredibly complicated and confusing. And in an industry where time is money, it’s understood that there had better be a big payoff if valuable hours are going to be spent.
How are co-op programs complicated? For one thing, different OEMs may refer to dealer advertising reimbursement by different names. For example, Honda’s term for co-op cash is Dealer Marketing Allowance. Meanwhile, some OEMs change the terms and restrictions attached to their co-op programs as often as every month. Sometimes entire programs change on a regular basis. Most OEMs insist on the inclusion of banners with reimbursed campaigns — but some don’t. It’s a lot to keep up with.
Here’s some good news: You can partner with industry experts like CarsDirect and Auto Credit Express to maneuver the co-op world. We can help you keep track of how many co-op advertising dollars you have coming, and provide you with suggestions on how to spend them.
Since we have access to the very latest co-op info from all manufacturers, we are a go-to source when it comes to meeting campaign requirements. We also handle invoice management. No matter what your marketing needs, we know how to optimize billing processes for maximum return.
So if you don’t feel you’re currently getting the most out of your co-op advertising dollars – or if you’re not using them at all – let us show you how to take full advantage of all available programs. To get started at absolutely no charge, click here to connect with a sales consultant.
And don’t forget – CarsDirect and Auto Credit Express can help you sell to all types of customers in addition to special finance buyers. Explore our full suite of products designed to help dealers sell more cars, including New Car Leads, Used Car Leads, and innovative Display Advertising solutions.
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