Why do dealers get to place their names on the backs of the cars they sell?
Why is it that dealers get free advertising by placing their dealership
name or logo on the rear of cars? There is no useful purpose in this -- not
for identification, not for service, not for anything. If I sell you a suit
to wear, will you let me put my store name on the back of the coat? If a
dentist does some dental work for you, should he or she get to put a tattoo
on your forehead for advertising? What gives? Just sign me "rear-vended." -
TOM: Anthropologists call this "marking," Dale. Leaving your calling card
everywhere you go. It's the auto-dealer equivalent of what dogs do on fire
RAY: Here's a good approach. Before you take delivery of a new car, ask the
dealer if he would like to advertise on the back of your car. He will
probably look at you quizzically and say, "Sure."
TOM: Then you explain to him that approximately 1,000 people see the back
of your car every day. That's 30,000 people a month. And tell him your cost
per thousand (that's advertising lingo for how much it costs to get 1,000
people to see your ad) is $10, which is quite reasonable. So the cost of
advertising on the back of your car is $300 a month -- which he can forward
directly to the bank, in care of your loan payment.
RAY: Don't forget to remind him that there's also a 15 percent agency
commission (that's advertising lingo for "extra markup"), which you'll be
glad to waive in exchange for the six-CD changer and the cell phone.