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What I learned about selling cars in the US, from the top-10 selling cars in the US

I got this article in my inbox from million-mile Saaber, Peter Gilbert. I don’t always get time to read every link that lands in my mailbox, but it’s a weekend and seeing the top 10 list for the US did hold some interest. And it did get me thinking.

Here are the top 10 selling vehicles for the US so far in 2011, as listed online by Forbes:

10. Ram pickup

9. Chevrolet Cruze – Chevy’s new small car has strong sales momentum.

8. Toyota Corolla – Corolla is down 11% this year amid tougher small car competition and dealer shortages.

7. Honda Accord – The only Honda model still in the top 10 due to inventory shortages.

6. Ford Fusion – Ford’s mid-size sedans have led a product revolution at Ford.

5. Ford Escape – Escape sales stayed strong, even with a redesign on the way for 2012.

4. Nissan Altima – Nissan’s mid-sized sedan shot up the list as other Japanese makers struggled.

3. Toyota Camry – Camry is still the nation’s best-selling car, and a redesign is coming for 2012.

2. Chevrolet Silverado pickup – Chevy pickups are overdue for an update, but still selling well.

1. Ford F-150 pickup – Ford’s workhorse pickups are the perennial best seller.

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Now, I may be learning the completely wrong lesson here, but here’s what I saw in that list.

The most popular cars in the US are rather boring, vanilla sedans that are sold on a combination of features and price, with price being a big driver. None of the cars in that list are going to get anyone’s heart racing. They’re not going to turn any heads. They sell because they deliver what customers expect – a price-driven transportation appliance.

Fair enough.

The trucks on that list each have their own loyal following and sell on a combination of price and functionality. They hold a promise of delivering a certain degree of utility and they have a place in the semi-modern American automotive tradition. The fact that the F150 has been the best selling vehicle in the US since Adam wore short pants tells you just how deep that tradition goes, and how well Ford keep delivering on that F150 promise. The F150 is pretty much a brand in itself nowadays.

Both sets of vehicles, cars and trucks, make certain offerings to their customers. The customers know what they’re going to get, whether it’s a boring sedan or a functional pickup. They’re buying transportation, or reliability, or functionality. Whatever the promise is, the vehicles in the list deliver on it at a price that’s suitable for the American consumer (the most price-driven consumer on the earth, in my experience).

So that’s the first thing that stuck out to me – something we all know, really, but it stared me in the face as I looked at this list: You’ve got to have a brand/sales promise that you can deliver to your prospective clientele. Price is important, especially in the US, but delivering on your promise is crucial (especially if you’re a niche brand like Saab).

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One company that’s not on that list, but may be by this time next year, is Volkswagen. They have a goal to increase their sales in the US by massive multiples and they’re on their way to doing so, recording a 40% increase in year-on-year sales in October, and recently being hailed as one of the most profitable car companies going around.

I made a video highlighting Volkswagen a few motor shows ago (in LA, I think, November 2011) where I famously described their stand a Das Boring (which it was). They’d just re-packaged their vehicle range in such a way as to drive down their list prices, de-contenting them like crazy (drum brakes?!) and they took a fair bit of criticism in the automotive press for doing so. They weren’t worried, though. Perhaps what they’ve learned, something that a few others haven’t yet, is that the first online price comparison is crucial in keeping you on a US shopper’s list.

Maybe this is something else that we have to learn. Saab will never be able to sell on price alone like Volkswagen can. That’s not where we are and as a small car company, it’s not likely a place where we’ll ever be. But maybe there are some things that we can learn about how we package vehicles and present them to the market.

Volkswagen have de-contented the heck out of their standard offerings but from an industry broadcast I saw last week, they’re still selling at very similar transaction prices to what they used to. People who are drawn in by the competitive list price are optioning them up once they see the car in the metal at the showroom.

Can we sell Saabs the same way? I’m not sure, but it was definitely food for thought for me on a lazy Saturday morning.

HUGE Saab promotion in Ohio – Snap up a Saab!

Saab of North Olmsted are undertaking a massive Saab promotion next month and if you’re in their region, north-eastern Ohio, then YOU could play a big part in it.

For four consecutive weeks, Saab of North Olmsted will give out 100 cars for week-long test drives as part of a competition/promotion they’re running. Do the math – they’re looking for 400 participants, 100 per week. If you’ve ever thought of actively promoting Saab, this is your opportunity – and you could win the Saab of your choice, too!

How it works:

You register your interest here.

If successful, you’ll get a Saab to drive for a week, with a capped distance of 350 miles that can be travelled in that week. The car will come with two QR codes, one inside and one outside. A QR code is a 2D scannable code (most smartphones have a QR code scanner built in) that will link people to a website.

As a weekly-round contestant, you will get your own microsite where your adventures will be recorded. You’ll have a week to check-in at sponsor outlets, get people to scan the codes on your car, get them to take pictures or make videos to submit to your microsite, and generally just build up your fan-base. The more check-ins, scans, media and fans you get, the more points you get.

Points are tallied each week and the initial 400 contestants will be whittled down to 24 for the semis – the top six point totals each week will progress. Semi-finalists will have two days to whip-up as much interest as possible and increase their point totals. The top five point winners in the semi-finals make it to the final stage of the competition.

The final stage of the competition will see our five finalists assemble at Saab of North Olmsted, where they’ll select a keyfob and press the “unlock” button. One of those keyfobs will send lights flashing and that lucky winner will win the Saab of their choice valued at up to $50,000

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Everyone wins

Discounts on Saab vehicles will be offered to all participants in the competition, regardless of how you participate.

Finalists will be offered the most substantial discounts for their efforts in the competition.

Weekly-round competitors will be offered the next most substantial discount.

But that’s not all……. Just by spotting one of the Saabs on the road and scanning the QR code, you will also be offered an attractive discount – just for being a part of the promotion.

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Get into it!

This is the perfect storm for a competition – limited geographic area, limited participants, heaps of fun and a high value prize. You’ve got everything to gain from being in it.

If you’re in the north-east Ohio area, then click here to register your interest and get ready for the test drive of a lifetime!

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The not-so-fine-print: (the full terms and conditions will be supplied directly by Collection Auto Group, owners of Saab of North Olmsted).

Contestants must be:

At least twenty-five years of age
Have a valid driver’s license
Have full coverage insurance
Have a major Credit Card
Have a clean driving record (no more than 4 points, no DUI)

Contestants may not be employees of Collection Auto Group

Contestants will be limited to 350 miles of driving. Should anyone exceed 350 miles they will pay $1.00 / mile over 350. Contestants must obey all laws. Contestants may not invite anyone under the age of 18 to scan an interior QR Code. Contestants must adhere to all of these rules and the Terms and Conditions of the contest.

A thought on Saab marketing and service

From the people I talk to, I know there’s a lot of interest in Saab’s marketing and advertising. As a prelude to our Q&A part 2, where one of the questions related to this, I can foreshadow the answer by saying that the marketing plan we will follow won’t be a shock and awe saturation TV campaign. Put simply – it costs a kings ransom and just won’t have that sort of money. We’ll have to be smarter.

I’m not posting this article to have a crack at people who think we should do this. It’s a natural thought, especially if you live in parts of the world where massive campaigns are the normal thing. All I want to do here is get people used to the fact that we will have to do things different.

Again, not having a personal crack, but the following was written in comments by Bryan S:

BUMP UP THE MARKETING. Im sorry to say, but i havent seen SAAB “try” to sell any of their cars since being pulled from the hole, that they fell back in. SAAB needs to shove its product to the consumers face, and over do it. Start making commericals and ads…. alot of them, something sassy, informative, something targeting the 25-60yr old crowd. You know why other brands are doing so well? AD’s AD’s AD’s.

As I said, it’s a normal thought in a culture where companies do this sort of thing as a matter of routine.

The problem is, we’re not in the same situation as most companies and we just won’t have the budget for massive TV-based campaigns.

Another commenter, named Tom, responded as follows and I couldn’t help but nod my head.

OK, Bryan. Since I work for a small, humble family owned dealer in New England and we aren’t advertising, I thought I’d start a direct marketing campaign, starting here with you!. I hope this will get you up and bring you into our Saab dealership.

-I can’t offer flashy, in your face advertising.
-I can’t overdo things, like the cars I sell and drive, I tend to be understated.
-I can’t be gaudy and trendy but rather timeless with an understated cutting edginess (again, like the cars I sell and drive).

Here’s what I can do….

-I can offer a product, a Saab vehicle, that arguably represents the most car for your money compared to everything else on the market even though we don’t like to be compared to anything else on the market. (our cars, our style and our views are rather unique)
-I can make the case for my statement above
-I can offer extraordinary service, before, during and after the purchase
-I can promise you’ll be treated with decency and respect.
-I can offer an individualized sales process tailored to you.
-I can work on your terms and at your pace without pressuring you.
-I can offer as much product information as you can handle.
-I can promise easy, stress free pricing.
-I can’t offer BS

We WILL be advertising and marketing the Saab brand and Saab vehicles. It’s not as if we’re not going to do marketing at all. But I think you’ll find that what we will concentrate on is more personal than a big, broad scattergun approach. And, accounting is another big thing I need to focus on. You know, accounting for your marketing agency is crucial when the budget is an issue.

Tom’s writing, above, is typical of how we’re going to rely on our dealerships to do a lot of person-to-person promotion for us. We will need to package our vehicles appropriately, arm our dealers with the appropriate knowledge and passion, and reach the right people to drive them into dealerships and make the connection.

I don’t know Tom, or the name of his dealership, but if you can find him, he sounds like the sort of guy you might want to deal with.

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And again, Bryan, I can understand where you’re coming from and you’re not alone in your thoughts. I’ve heard similar pleas from people all around the world for several years now. I’ve only used your comment here because it prompted the response from Tom in the same thread.

What you’ve suggested is actually quite accurate and if we can do what you suggest, I’m sure we will. BUT……..Nothing I know about our potential budgets indicates that that will be possible at a re-launch. The dollar amount involved is mind-boggling and you’re paying for a lot of eyes connected to brains that just won’t register what they’re seeing.

We need to be a lot more targeted and personal than that. And we need to make sure the experience is as good as possible, so that you as a customer will tell others about it.

A tall order, but that’s what we’re facing.