Brand equity is the additional value your dealership receives from having a well known brand, or high level of brand awareness. It is the difference in price that a consumer pays when they purchase a recognized dealer’s brand’s inventory over a lesser known, ( and possibly even cheaper) dealer with the same models.
“Brand equity is a major indicator of company strength and performance, specifically in the public markets. Often times companies in the same industry or sector compete on brand equity. For example, an EquiTrend survey conducted on July 14, 2016, found that The Home Depot was the number one hardware company in terms of brand equity. Lowe’s Companies, Inc. came in second, with The Ace Hardware Corporation scoring below average.”
Brand equity is a competitive advantage that lower costs and produces results proven from higher sales and revenues.
Why is brand equity important in your dealership’s marketing?
Having it means that a dealership has separate itself from its market competitors. Whether it is excellent customer service, an excellent sales staff, or even a thriving service department, some aspect of the store has attracted enough respect and recognition from local car consumers to warrant them spending more.
Establishing brand equity will have tons of advantages for a any dealership. Stores with this competitive advantage might enjoy higher revenues as customers pay more , as well as having a larger market share and customer base. Finally, it is generally easier for dealerships with strong branding to expand into different profit centers, since the car consumer trust of that dealership will follow any new service or special a store creates.
It not only increases sales and revenues for a dealership, but it lowers costs also. Marketing expense costs for recognized dealership brands are lower since many car consumers already know about the Store.