NEW CAR DEALERS SAVE CASH FLOW AND BUY ADVERTISING WITH STOCK ON HAND, 3 BIG BENEFITS, EXTRA SALES, EXTRA CASH FLOW AND EXTRA PROFITS

Buy advertising with stock on hand not cash flow. buy advertising with cars
Buy advertising with stock on hand not cash flow

Media 4 Retail (M4R) helps Car Dealers conserve cash flow and capital. We help Dealers buy advertising in a way that allows them to pay for some or all of the advertising with their motor vehicles rather than money from their limited bank cash resources.

The retail car market could not be tougher than it is today. Now with Corona Virus in the mix consumers are too scared to commit to major purchases or to increase borrowings.

Traditional way: Car Dealers buy advertising from cash flow or working capital

Let’s consider an example where a Car Dealer wishes to purchase £40,000 of advertising. The traditional method that has worked for years relies on cash flow funding or access to working capital.

Now, in order to have that cash in the bank in the first place, the Car Dealer must have made sales well in excess of £40,000.  The profit from past sales needs to be accumulated in order to have the funds available for future advertising.

The Financial impact and result of the traditional way is:

  • £40,000 advertising campaign is produced with no guarantee of a return on investment. Will the campaign introduce anyone who will buy a cars?
  • Bank account has been drained of £40,000 working capital
  • The risk of 100% failure is very high

M4R way: Car Dealers buy advertising with New Cars

The M4R method allows the Car Dealer to pay 100% of their advertising with their vehicles on hand instead of cash at bank. This immediately conserves cash flow and reduces the drain on working capital.  In the example below we show the impact of paying for 100% of the advertising with cars..

The Car Dealer will not need to release any money from the bank to pay for the advertising. This conserves £40,000 in the bank for other uses. The Car Dealer will however need to provide M4R with a vehicle with a show room ticket value of £40,000 to complete the payment of £40,000 for the advertising.

The advertising will run and be exactly the same advertising as that would have received under the traditional way.

The Financial impact and result of the M4R way is:

  • £40,000 advertising campaign is produced and before it even commences it has sold £40,000 in cars. This is a guaranteed return on investment from the outset.
  • Bank account has not been drained and still has £40,000 cash in it
  • If the advertising works then it will drive additional foot fall to the showroom resulting in additional sales
  • The Car Dealer saves even more because the cost of supplying £40,000 of cars is less than  £40,000 the profit margin becomes a discount
  • The Car Dealer now has a new customer and servicing responsibility for the car going forward
  • The risk of 100% failure is zero
  • The bottom line for the Car Dealer is, extra sales, extra cash flow and extra profits

Which Car Dealers most benefit from the M4R way?

The Media 4 Retail platform is suitable for almost every Car Dealer, new and used. The only requirement is that they have a need to advertise and that they sell to either consumers or other businesses. 

The best way forward is to make an enquiry. We will be able to tell very quickly if M4R will work for the business.

What types of Media are available?

We are able to supply almost every form of advertising usually with 100% payable in cars. The media includes:

  • Television
  • Radio
  • Print news and digital news
  • Sunday paper inserts
  • Main stream digital, google and face book
  • Magazines
  • Sponsorships
  • Bill Boards, paper and electronic, 96 sheet, 48 sheet, bus shelters and phone boxes
  • Taxis and buses
  • London underground, tube, posters, escalators
  • If we haven’t got it we will try to get it

Summary

Please ask yourself these two questions.

  1. If I stop advertising now and keep the cash in the bank, how long will my business survive?
  2. “Would I rather buy advertising with cash from my bank account or pay with cars on the showroom floor?”

M4R provides a strategy that allows the Car Dealer to have an each way bet, we drive extra sales, extra cash flow and extra profits, guaranteed!