WHAT IS YOUR REAL COST PER SALE FROM ADVERTISING?
Most of us were taught a very bad formula to determine our ad cost PVR.
BUT it sure made us feel better about spending so much on those ads.
We were told to divide our ad expenses by our total sales.
But that’s just your overall cost of advertising per vehicle sold,
not what it costs to sell a vehicle that only sold because of an ad.
To find the real cost on ad sales, just fill in 4 blanks.
I guarantee that when you use this formula instead,
you won’t believe your actual ad cost per sale
Enter your average monthly advertising expense per month for the last 3 months
Enter your average number of retail units per month for the last 3 months.
What % of your sales are from repeat and referral customers, not ads?
(Average is way less than 20%. Change the default if you know yours.)
What % of your business is directly from your location, not advertising? (Industry average is 62%. Change the default % if yours is different.)