San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-09
Some Say Dealers Will
Eventually Take Only
Cash.
SHOULD BEGIN NOW
N. A. D. A. President for
Dealers Trading Only
What Car Worth
BY JOHN A. BUTLER.
President Kansas City. Mo-, National
Automobile Dealers Association,

I am proud to be connected with
the motor car business. l think it's
a good business and a lot of money
has been made in it and, of course,
there is q lot of money lost, but we
are getting better every year. We
are using saner methods and l think
our methods are going TO improve a
good deal in the next few years. This
depends upon how long it is going to
take us to learn the lesson that some
of the older business concerns have
learned.
have heard some people state that
We will eventually discontinue trad
ing for used cars altogether, and have
brought up the argument that when
you get a new suit of clothes you
don't ask them to take in the old
clothes, or shoes. OF course, this is
is q fact, but the typewriter people,
piano and sewing machine people do
still take in the ussd articles, but on
a saner basis. Just what this basis
is going to be l don't know, and. of
course, some day we will discontinue
outbidding any others.
It's my firm belief that We will
make much more money out Of this
business the day we decide to take in
used cars at just what we think they
are worth and no more.
Things That Hurt.
The thing that is hurting the motor
car dealers more, in my judgment,
than anything else is their great anx-
iety to do business. l believe we
have shown as much sales effort and
ability as any line of merchandising
in this country, while the loss in
,,uaI hos hoav1 traDaand 0Ic Tho
dealers who oyer-trade have lost
good many more dollars than they
know of, due to the fact that a lot
of these deals could have been made
at the right price if they had had
the nerve TO let the customer leave
the door with their first appraisal. de-
pending on the selling they gave him
on the new car for him to return in
stead of their high appraisal.
l can remember, and lots OF you
fellows can, when it was possible TO
get a reduction on every pair Of
shoes, suit of clothes, hat or any
thing you bought even down to can
of tomatoes, if you made the proper
effort. These things have changed
row, so that we know any legitimate
merchant is "One Price Mer-
chant" It's only been a few years
since the motor car sold that way.
We know it was no small effort on
our part to overcome this obstacle,
but with the assistance of the fac
tories, we have finally quit that and
/ think it is very seldom that any
body ever buys car at retail at
reduced price, or dealers price or any
of these things.
Now isn't the competition Just as
keen on a car when you have a trade
involved as it is when you haven't?
And this is certainly the desirable
deal. If this is the case what hopes
has the dealer who feels that his prod
uct is oyer-priced and it is neces-
sary for him to over-trade on things
to get business? Where is he going
to come out on the cash deal?
Money for ALI Dealers.
OF course, we know that some of
the popular lines of automobiles are
more profitable from the dealers
stndpoint than some Of the cars not
known so well, but it is my belief
that any automobile dealer, with al
most any line of automobile, can make
money, but 1t has been clearly dem
onstrated that he can't do it by over
trading. He must adjust himself to
his surroundings and to the business
be is entitled to get. In other words.
if you represent a car that you are
rightfully entitled to get 100 cars
year, or 20 for that matter, you can
30 adjust yourself TO make money on
the 100 car sales, provided you con-
duct your business on a 100 car basis
but it's absolutely impossible for that
100-car dealer to have a magnificent
ealesroom like that of the 20OO-car
dealer. Neither can he spend as
much money advertising and there
are a lot of things he can't do that
the other fellow can do. He can by
hard work and a lot Of energy and
sane methods maybe increase that TO
125 cars but IL he attempts to reach
225 or go he will probably lose
money instead of make it.