It still surprises me when I come across a franchise dealer who is not fully utilizing his co-op advertising funds. To me, it’s the same thing as throwing half your paycheck in the trash. Co-op funds are earned by dealers. It’s not a present from the OEM. These funds are designed to help drive more leads that will convert to more sales.
Did you know that the average dealer who uses co-op invests 40% more in advertising programs than dealers who do not? Think about that for a minute — 40%. The advantage these dealers have over those who don’t use co-op funds is enormous. It doesn’t make sense not to take advantage of the funds that the manufacturer sets aside for dealers to use.
One objection that I occasionally still hear is that “it’s too much paperwork and too many restrictions.” That may have been the case 10 years ago, but modern co-op programs are nothing like the old ones. Sure, there are manufacturers who limit where a dealership can advertise, because some do not want the dealer to advertise outside of their market. But, that’s becoming increasingly rare in this digital age.
Also, the co-op claims process is much less onerous than it used to be. If the dealer uses a certified vendor, such as Equipment Trader, the paperwork and filing is done by the vendor on the dealer’s behalf. The process is so streamlined that oftentimes the dealer doesn’t have to touch a piece of paperwork.
Remember, if you’re not using your co-op funds, your competitor is. And, they are using it to grow their reach. For information about available co-op plans for your dealership, contact your OEM rep, or you can contact us here at Equipment Trader. We’ll point you in the right direction.