December Showdown: Will You Be the Q4 Winner?
Hot trends, watching the money, and fast news from the Automotive Advantage
Hot trends to watch (out) in the last half of 2023
There’s so much going on in the super-hot automotive aftermarket, that we should’ve never taken that month off, all European style. But here we are with a primer on what to watch for in the coming months. New cars are up, used cars are down, and the aftermarket is surging. Here’s more …
In-Person Shows are Back: That’s right funnel cake lovers, it’s time to dust off that pop tent, fill your cooler, and get your sales shoes on. Americans want to get out and experience life again, and they are including racing and car-oriented events in that. Enthusiast events are up which will lead into a heavy Q4 trade show season.
EV is on the Decline: Oh, the honeymoon might be over on this one, folks. During the last month, Ford couldn’t give a Mach-E away, and Telsa continues to drop prices to make the number. People have finally started “looking at the science”, and it’s not adding up. EVs are dirty – we all knew that. But the promised battery technology just isn’t getting here fast enough. So, EV conquest stales don’t exist, and the early adopters are gone. EVs are going to be a tough sell no matter what the “experts” try to tell us.
New Cars Are Expensive: It’s just getting worse. We bought cars when they were over $50,000, now it’s nothing to pay $100,000 for a new hot rod. What are OEMs going to do? Raise prices while their dealers tack on more. It won’t slow down for the foreseeable future.
Used Cars Are Not So Expensive: You will be able to find deals in the used car market in the next half year, but not on cars you actually want to drive. Trucks will remain hot, and performance cars (especially limited production units) will be out of touch. Watch for sweet deals on minivans, small sedans, and anything with over 200k on the clock.
Marketing Trends: While Twitter/X and FB fight it out, YouTube continues to be a force for folks doing research on your product both to buy and to install. Think about doing that video or partnering with an influencer on your new product launch this quarter.
Exotics and Exclusive Cars are Hotter than Ever: Ferrari is reporting Q2 profits of up 33% YOY with $6.4B of top line revenue in 2023. That’s 33%!!! Are you up 33%? We can’t all become exotic brands overnight, but watch their marketing, create demand, do the extra unique touches that everyone is looking for. Learn from the top of the this industry because something is working for them.
Winners are Going to Win in Q4: This year more than ever, it looks like your revenue target is going to be made in the month of December. It’s been a wild/weird year, but it looks like things are settling down to a 5-10% growth rate mid-year. The problem is that you missed your sales targets for H1, and now it’s do or die. Get creative, work the phones, and put those marketing chops to good use. Because the one thing that’s going to be in high demand in Q4 is a… closer.
Where is all the money going?
Well, folks, it's official: Americans have a new favorite pastime, and it's not baseball. It's racking up credit card debt! 🎉 The Federal Reserve Bank of New York recently reported that credit card debt in the US has just zoomed past the $1 trillion mark and it's clear that we're all in the mood for a little... financial adventure.
But, it’s not all bad news… that credit card debt is just 6% of the total deposits households have in the bank, which is around the lowest percentage in 20 years… so, there’s that.
Now, before we start imagining a future where your speed shop accepts payments in the form of IOUs and "will pay you back next week" promises, let's shift gears. The economy might be tightening its belt (or, you know, trying to find a belt that fits around that trillion-dollar debt…), but that doesn't mean your automotive business has to stall out.
1. Embrace the Side Hustle:
If you’ve made it this far in your business, you already know how to hustle. Take some time to think about your side hustle and how you can be making some additional income on the side. You don’t have to go all Gary Vee and buy junk at yard sales, but you could probably flip some car parts on Facebook marketplace…
2. Look at Your Books:
Some people know all the numbers on their P&L and others, uh, just don’t like to think about that. As the economy continues to tighten, knowing where your money is going is more important than ever. Get in there - or hire someone to help you - and find out where the money is.
3. Build Relationships:
In times of economic squeeze, it's all about who you know. Forge strong relationships with suppliers, wholesalers, and your reps to negotiate better deals. And don't forget your customers – they're the ones who keep coming back to you and they’re feeling the burn, too.
4. Keep an Eye on the Cash Flow:
It's tempting to splurge when business is booming, but remember: today's splurge is tomorrow's "why did I buy that giant inflatable gorilla for the storefront?" moment. Keep a close watch on your finances (see tip number 2), and maybe, just maybe, avoid the inflatable gorillas. Okay, fine, buy the wacky arm inflatable tube man.
5. Educate Your Customers:
With inflation on the rise, prices might need to go up. But instead of just slapping on a new price tag, educate your customers. Let them know why costs are increasing and assure them that you're still committed to providing top-notch service.
5. Don’t Pay Your Taxes:
No, just kidding, please do not do this.
While the economy might be playing a game of "how high can we go" with credit card debt, your automotive business doesn't have to join the race. Stay savvy, keep your head down, and remember: the government won’t help you.
Fast News
PRO, the Professional Racers Owners Organization, announced an all-new 1.3 Million Dollar Drag Race set to take place February 8-10, 2024, at Bradenton Motorsports Park.
Tesla hackers find ‘unpatchable’ jailbreak to unlock paid features for free. Back in our day, we just called that tuning.
Stellantis Is launching a cheaper parts brand to maintain old cars called BProAuto, for some reason.
Escalade EV is officially a thing now. It makes 750 horsepower and will start at 130,000 dollars.
Gadget of the Week
It’s hot out there, and nowhere does it get hotter than on the inside of your jalopy right at quitting time. Of course, you have the sun shade to keep those steamy rays off that dash, but how are you going to cool it down while your A/C spools up? Enter AaoLin and their dual-headed USB-powered fan kit. Once you fire up this monster, things will start to turn in your favor. Let us know how it works …