Category Archives: Economy

Business, Economy, Marketing

Make Sure To Compare Apples to Apples When Discussing Sales

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Sales figures always appear to be written in black and white, either sales are good or bad. But when it comes to comparing two completely different markets, and trying to find a correlation between both sales figures, that’s where they become very misleading. Whether it’s in the business world or the journalists who report it, sales figures must be reviewed carefully, or the one who comes up with inaccurate findings looks like a fool. It’s important to take into consideration the markets in which your company or the company you’re writing about or reviewing, is in line with other companies or your business report will be flawed.

In the auto industry, journalists like to stir the pot a bit by posting misleading headlines that turn heads, but with further review, make the writer behind them look silly. This past February the Mitsubishi Mirage outsold the Volkswagen GTI. It seems to be a surprise considering the popularity of the GTI’s within the car enthusiast community, but base price for both cars proves to be the reason for the Mirage’s ‘improbable’ outselling of the popular hatchback.

The Mitsubishi Mirage starts at $13,000, while the Volkswagen GTI starts at $25,000. The $12,000 difference is one reason for more sales for Mitsubishi, but both these cars aren’t even in the same class. Also by doing some research of my own, the Mirage didn’t run away with overall sales as the GTI was only 84 cars behind. In one article, the writer posted a graph of which vehicles the little economical car outsold, but every other car on the list was either $12,000 – $40,000 more than the Mirage, making the sales figures not that outstanding. If a Lexus GS, with a starting price of $48,000, almost outsold a $13,000 car, that’s not good news for Mitsubishi.

Sales figures can be misleading if there isn’t further research. Also when it comes to business, you can’t compare apples to oranges, and that’s what a Mirage is to a GTI, they’re not the same or even in the same market. Because Volkswagen considered the GTI to be a different model than the Golf, sales figures are somewhat distorted since as the Golf, which is closer in price to the Mirage, sold 2,000 more cars than the Mirage.

Always do research and make sure both businesses and products are in the same market. What appeared to be a disappointing month for the GTI, was in fact on par with the previous 6 months of sales.

Blogging, Economy

You Have $15,000 In Cash, Do You Buy Or Lease A Car?

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Some of you may know that I’m the creator of BostonAutoBlog.com, and if you’ve followed me for a while you also know that marketing, social media marketing, and business are topics that I discuss quite a bit on my own personal blog. I’m going to combine both of my interests into one article, asking a financial question that I don’t want a quick answer to in return, but rather the most logical solution to a problem many consumers who are in the market for a car face everyday. If you have $15,000 in cash, do you buy or lease a car? Actually, I’m going to make it more interesting. If you have $10,000 in cash would you buy or lease a car?

Having scanned through forums and Reddit, there are many young, and even older consumers, who ask the same question, usually with the same amount of money in hand asking for car buying advice. Now, if your commute to work and weekend trips make your annual mileage higher than 12,000 a year, then buying is the better option. But what about those who are driving around 8,000 – 10,000 miles a year. Would you still be so hasty to buy instead of lease?

Most people feel that leasing costs you more in the long run. But does it really? True, your car payments could be higher per month, but because it’s a new car, you won’t have to factor in major maintenance costs. At $10,000 – $15,000, you’re not going to end up with what you want. Certified pre-owned, you’re looking at the Honda Civic, Hyundai Elantra, or Toyota Corolla to name a few. Used can be a case of trick or treat. There’s always diamonds in the rough, but more often than not, you’ll end up with someone else’s problem. Mechanical failure is likely, factoring into the overall cost of the car, while it’s aging, and every year the resale value is slowly tanking. You either wind up with a money pit, or a decent car that will last you a few years before maintenance issues could arise.

Now let’s look to leasing. You have $10,000 – $15,000 in hand and you’re visiting local dealership websites comparing lease offers and deciding which one works best for you. You stumble upon a great deal. Your local Ford dealership down the street has a lease offer for a new Ford Escape SE; $4,173 due at signing, $159 a month for 24 months. If my math is correct, for those 2 years it will cost you a grand total of $7,989, not including oil changes and annual maintenance. You’re saving $2,000 in the long run, which will be two grand more saved up for your next lease. If you buy a $10,000 car, you’re looking at a world of unknowns.

So the choice. A new Ford Escape SE or an 8 year old car with 50,000+ miles on it. $8,000 overall in 24 months, or $10,000, plus maintenance that will inevitably happen sometime during your ownership of the car.

Another example; this time you have $15,000. Now I’m sure you can find some sweetheart deal for a 6+ year old Infiniti G35 or G37 or an older BMW 3 Series, but again let’s factor in unforeseen maintenance. But you decide, “I’ll lease instead because I want to drive a new car”. Here are the potential options you have. Let me just say this is all predicated on what the dealerships in your area are offering. Here’s a few from my neck of the woods.

Audi A3: $2,694 downpayment, $299 a month for 36 months = $13,458

BMW X1: $4,000 downpayment, $239 a month for 36 months = $12,604

BMW 320i X-Drive: 4,000 downpayment, $239 a month for 36 months = $12,604 (Same offer as the X1)

Infiniti Q40: $1,499 downpayment, $229 a month for 39 months = $10,430

Lexus IS 250: $1,599 downpayment, 349 a month for 36 months = $14,163

These are just some of the deals that are out there. They all cost under $15,000 within the three year window you have the car. Most come with leather seats, heated seats, bluetooth, navigation, and electric sunroof. So think about it for a minute. You can have a luxury car for the same price, or less than if you bought a certified pre-owned Honda Civic. There are even better offers out there if you don’t want to spend $15,000.

After seeing this, would you still buy or would you lease?

Business, Economy, Marketing

Car Dealerships: Don’t Be Afraid To Use Social Media

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The name of the game is to sell cars, and what better way to do that than having an effective social media marketing strategy? Every other industry has hopped on board, and now it’s time for the auto industry to do the same. But what is really stopping dealerships across the country from branding and marketing their businesses to appeal to customers within their region? Unlike with TV ads, Facebook ads can target specific potential car buyers that live within walking and short driving distance of the dealerships that are advertising. So what’s the hold up?

First off, I’m just going to be straightforward. The social media accounts most dealerships operate are downright boring. You’re a business, not a virtual newspaper selling coupons every 3-6 months. Stop hard selling as if this is the 1950’s. One reason there is very little engagement with most dealerships’ social media pages is due to lack of trust. But more importantly, the content these accounts post aren’t worth reading or responding to. Instead of posting already used content by other dealerships that are selling the same brand, post unique content that shows off your showroom, best cars in your inventory, and interesting news or services that you provide.

Create a blog and share your content on your social media accounts. Tell possible car buyers why they should buy from you, why they should have their car serviced at your dealership, and explain the parts you use in the maintenance department to build trust and persuade car owners to come to you. Only posting when you have a sale or service special falls on deaf ears because you haven’t created good enough content that keeps people coming to your Facebook or Twitter page. They will inevitably glance or skip right over your post because 90% of your content is hard selling.

Post photos on Instagram. Herb Chambers BMW of Sudbury consistently posts pictures of BMW’s that are in their showroom. What 20, 30, or 40 year old doesn’t like a BMW M3, i8, or 435i Gran Coupe? You’re missing out by not posting on Instagram. The companies who are utilizing all social media platforms are increasing sales, but it’s their patience and determination that’s keeping them relevant because they’re posting good content that people want to see.

By being on social media, you’re in essence becoming an influencer. In studies, 27% of consumers are influenced by the cars they see on Facebook, Twitter, and Instagram. Because the pictures contain the car on the road, in the city, or in the woods, consumers can visualize themselves driving that car, or taking that same photo on their vacation. You’re giving social media users eye candy that they just might indulge in.

This doesn’t just apply to car dealerships, but businesses in every industry. You have to capture the reader’s attention by posting articles that are worth reading, post photos worth liking and sharing, and posting quality content that will show up on people’s timelines. By not using social media, you’re feeding the perception consumers have of your business or industry as a whole. You can change that by showing who you are, what products you sell (in this case cars), and why consumers should walk into your doors and not the competition down the street.

Business, Economy, Marketing

Car Dealerships: You Should Be Selling An Experience, Not Just The Car

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Even in the year of 2015, car buyers have a very negative perception of car dealerships. Go on Twitter, search the term “car dealerships” and you get many disgruntled consumers who aren’t happy about going to a dealership or spending any amount of time at one, even when they’re buying a new car. There are some tweeters who are complaining about the lack of free coffee or refreshments. At a few dealerships I’ve stopped at, I had the option of getting a bagel, coffee, and bottled water. Dealerships out there are missing out on a great opportunity to change the perceptions of car shoppers, and social media is the best way to create a positive vibe.

Mercedes Benz of Burlington, Massachusetts is about to reshape how consumers buy cars. While there are probably dozens of others in this state or across the country catering to and treating consumers like they really matter, many still haven’t caught on or marketed their upscale customer service specials. Mercedes Benz of Burlington feeds their customers with gourmet food and coffee, offers manicures, and car washes while they wait. Not only are the cars luxury and arguably best in class, but by treating their customers special, the word of mouth and the amount of referrals from happy car buyers will pay dividends in the short and long term.

If your dealership offers comforts that many potential car buyers don’t expect, you have to make that aware to them. You’re no longer just selling a car, you’re selling an experience. Jordan’s Furniture in Wakefield and Patriot Place in Foxboro were the beginning of a new trend, and they were far ahead of the curve. Bob Kraft doesn’t just own the Patriots, he owns an empire that is attracting fans, even during the offseason. Jordan’s Furniture draws customers despite the fact that some have no intention of buying furniture on that particular day. Mercedes Benz of Burlington, because of their special services and the treatment of their customers, will attract customers who probably were loyal BMW and Audi owners. This is the direction in which the industry is heading in.

You might ask, “How do we make potential car buyers aware of our high quality customer service?” The answer is simple. Use social media to your advantage. That’s where all your customers are, and by being friendly and acting human, you will change the perception car buyers have of car dealerships. That’s the biggest problem in the auto industry, lack of trust. You have to build that trust by posting quality and valuable content that makes customers engage on your social media pages. Show the friendly and comfortable environment your dealership offers. Post photos of your inventory and showroom. Give people visual appetizers so they’re comfortable when they walk into your doors.

Mercedes Benz of Burlington has got the right idea, and they’re executing to perfection when it comes to social media. They’re using all the major platforms and posting native content showing their best cars. You have to do the same or the dealership down the street who’s got a strong social media presence will steal your business. It’s 2015, it’s time to start marketing like it.

Business, Economy, Marketing

Social Media: You’re Personal Branding Every Minute Of Everyday

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What if I told you that at this very minute your personal brand and future career is being shaped? That every tweet, every status, every Instagram photo, and Snapchat picture you post today has an effect on how others perceive you tomorrow. I’m not just talking about your peers, but also employers, bosses, CEO’s, innovators, and big-time influencers. Your tweets are reaching someone, no matter how informative or silly they are, someone is reading them, and they’re not one of your followers. This is what at times is very hard for the mind to rap around, but social media can be your greatest asset, or the tool that gets you fired from your job, and possibly destroys your career.

Most of you have probably heard or read of someone getting fired for what they’ve said online. Last month, a teenage girl was fired from a job she hadn’t even started working at yet because she tweeted her disgust about working at the pizza shop. What you say can have dire consequences, which is why social media in most cases should be used with discretion and a sense of professionalism in mind. We’re living in a time in which everything we say on the Internet is documented and held under a microscope, and it’s time we start using social media the way it was intended.

Because trolls and childish commenters don’t deserve the light of day on a professional matter such as personal branding, I’m going to focus on how it’s essential to post mature and valuable content that will be worth reading and responding to. If you’re someone who takes professionalism and your career seriously, you’re going to prosper on social media because very few millennials are taking advantage of such a powerful tool that could change their lives around.

Companies and businesses are constantly searching on Twitter for content to respond to, retweet, and acquire clients and customers. Are you one of those tweeters who continues to write good and valuable content? Well keep it up because you will get noticed eventually. Take advantage of the voice social media has given to you and show the world (literally) what you know. Your tweets are reaching people across the country and in your own back yard.

When it comes to Facebook, are you engaging with your favorite fan page when they post content? Are you offering any valuable advice in the comment section, or giving a worthy response with your opinion that could change other’s perceptions? If not, start now. You can become an influencer just by consistently engaging on these pages, and who knows, maybe the social media department of these magazines or companies will take notice. Great content is never overshadowed because people will read it. Sometimes the responses aren’t aligned with your opinions, but you’re creating buzz and traffic for that fan page, and that’s important. Engagement and traffic is just as good as money for these social media pages, and if you’re bringing that in the right way, you have no idea where that might lead you.

There was once a time in which you had to apply for a job, seek out openings, and hope you offered more than the other applicants. Today, it’s the opposite. Companies and businesses seek you out. They want talent and young professionals who are ready for the work force. Admirable characteristics have become a lost art these days, but for those who still carry themselves like the people and professionals who came before them, they will find jobs and attract businesses and influencers to them and in essence, they also become influencers themselves.

It’s 2015. Millennials need to understand that every tweet, status, or blog post is their personal brand. We’re not Generation X or the Baby Boomers, our personal brand isn’t created the minute we step into the work force, it’s being built right now.

Twitter is an extremely powerful platform that could make anything we say go viral or reach people of importance. That’s why I recommend making accounts private if you have no regard for your own image and brand. The things I see people my age sharing on Twitter is outrageous and downright embarrassing. On the flip side, I see many people who are gifted with great talent and ability, but never use Twitter to their advantage or completely misuse it.

Social media, if used right, can propel your career to levels that people our age 20 years ago could only dream of experiencing. Our career’s fate could be sealed by one tweet or status, and that’s why Twitter should be used with discretion and professionalism.

Red Volvo S60 Polestar
Business, Economy, Marketing

Automotive Consumer Demographics Are Proven To Be Right In Car Shows

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Red Volvo S60 Polestar

Volvo S60 Polestar

If you’re a car enthusiast, a follower of Car & Driver, Top Gear, or other car magazines on Facebook, you’ve probably read or been a part of conversations on which car is better. You’ve also most likely had to defend your position numerous times as you believe that the car you like is indeed better. Well, you’re not alone. This happens on a daily basis between car enthusiasts, but what do market and consumer demographics have to say about brand’s perceptions, build quality, and overall popularity?

Auto shows are a great way to find out which car you like, but from a business and marketing standpoint, you find out who is actually buying what brands, their age, gender, relationship status, and where they stand in financial stature. The beautiful women who are employees of the car brands are always around at the desks to either answer questions, or in my experiences the past two years, to ask questions on what I think of the car and what could be improved. These employees are survey takers, and are also marketers as well. The knowledge of the consumer demographics are beyond what I know, but after really taking a good long look at the cars and crowds, it’s clear that there is a dramatic difference between consumers of certain brands.

“Cadillac Is An Old Person’s Car”

Being a college aged adult, Cadillacs are beyond my financial reach to begin with, but with a resurgence taking place within the company, many younger adults are beginning to look at the luxury GM brand a bit differently. Some have emphatically defended Cadillacs over the German competitors, and on occasion insult those who disagree that the American automaker is an old person’s car and make vehicles car companies used too make. Last weekend, that perception held strong.

To humor myself I wanted to sit in the new ATS and other models Cadillac is introducing and selling. Each time I made an attempt, 65 year olds and retirees were the ones looking at those cars, spending much time in the driver seats, making it appear that they do intend on owning one in the near or distant future. The cars that were present didn’t draw in younger people, and there were very few middle-aged adults taking good long looks at the Cadillacs. Right now the luxury car maker is trying to compete with Audi, BMW, and Mercedes Benz, and currently they’re not drawing anywhere near the same crowd.

Mercedes Benz Is Trying to Be The Car Of The People

It’s absolutely incredible what Mercedes Benz has done with their lineup. They have a car for almost every market in the automotive world. From small compact sedans, to full-sized SUV’s, Mercedes has by far made the biggest impact in the automotive industry and consumers are taking notice. Having gone to the auto show in Boston two days over last weekend, the results were the same. There were dozens of people swarming over the Mercedes Benz’s, and with an array of different models, people were spending close to 10-15 minutes talking about the cars, taking photos, and sitting in the driver seats.

It’s clear that Mercedes Benz wants to be in every single market. They recently began marketing the new B-Class which runs on electricity, a market that is growing every month, as Tesla’s success is putting pressure on other manufacturers to begin producing cars that run on electricity.

Volvo: The Family Car For The Family Oriented Adults

As a Volvo owner myself, I know the perception of the Swedish automaker to be safe and for the middle class adult who has a family. I’m happy to say that’s the complete and honest truth. Families with young children were surrounding the Volvos, especially the XC60 and V60, one being a crossover SUV the other being more of a traditional station wagon. Cargo space and comfort appeared to be the most important aspects of the cars themselves for the families looking at them, and having foresight of their demographics, Volvo even set up comfortable chairs to sit in within their section of the auto show so kids could have a place to rest.

However, the Volvo that was attracting many young adults was the S60 Polestar. A turbocharged 6 cylinder engine putting out 325 hp would get anyone excited. This car was by far the most popular attraction for Volvo in terms of reaching consumers of multiple demographics.

Right now car companies are competing for a strong stake in the automotive market. At times it appears that some of the auto brands are going away from their identity to attract consumers who weren’t originally part of the specific market that bought those cars. For Cadillac, they’re in a Catch 22 because they can’t look back, but they’re also having great difficulty in moving forward because the Germans are always one step ahead. At the end of the day, the demographics reveal all about who is buying what. Auto shows are the best way for these companies to get a feel for the market and who they’re attracting, and for some brands, they have a lot of work to do before they begin to compete with Mercedes Benz, Audi, and BMW.

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Blogging, Business, Economy, Marketing

Effective Social Media Marketing Starts With the Person Behind the Account

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Effective social media marketing all comes down to the level of intensity, passion, and love for the product, business, or service your company is offering. If you don’t believe in the product, are unsure whether it will sell, or have very little interest in what you’re selling, I can guarantee you will not see the results you are hoping for. A business owner, Youtube vlogger, blogger, or social media manager’s passion for what they’re selling, talking, or writing about is present in their work. If they love what they’re doing, it will be shown through the quality of their work.

The person behind the social media accounts, whether they’re the marketer or the business owner, take on the business’, blog’s, or website’s brand. That brand is constantly being shared through the statuses, pictures, and tweets, and the passion that the social media manger has for whatever is being sold or shared will ignite others to respond and take a closer look at what your company does or what your website talks about. Social media has become the face of the company’s brand. While you, along with what you post, is the heart and soul. If you write or share content that comes directly from the passion you have for the subject, you will get noticed.

This coincides with the amount of times you should post on your social media pages. People always ask, “How many times per day should I post content on my accounts?” My answer is, if you truly love and believe in what you’re selling, the number of times you post no longer becomes an issue because you’ll always find interesting content to share with your followers.

On Twitter, why are some entrepreneurs better at maintaining their large group of followers while others become the occasional tweeter who just shares content but nothing more valuable? Some would say lack of time, but if you truly love your business you most likely want to talk about it to anyone who wants to engage in a conversation. Who knows, you could learn something from your followers by listening to them and engaging in two way conversations.

Social media marketing really does come down to the passion you have for your business, service, or product. Being apprehensive and shy towards reaching out to potential clients and customers becomes less of a problem when your truly believe in what you’re offering to make their lives and businesses better. Just as when we were in school, we never put in the effort to do better in the subjects we hated or had no interest in. But those classes that made us think, be creative, and formulate new ideas were what got us through school.

Whether it’s a hobby or the line of work you do, social media is the tool that helps us reach out to like-minded individuals, clients, and customers who will walk into your store’s doors or buy your products online. It’s imperative that we use social media to our advantage and see a ROI that you’ll never get from traditional forms of marketing.