We meet quite a few premium dealers across the country. In those engagements, it seems that managing marketing funds and making the most of every dollar is a challenge. Even your best efforts go out the window when you have so many other issues screaming for your attention. Many of you are dealing with six-figure marketing spends and that’s worth a moment of pause.

It’s always important to keep a close eye on your budget, but when the market is questionable – smarter spending is crucial. The premium appliance world has been prosperous over the last several years but the market is softening and dealers need to adjust for that. But what is the best next step to take when the market softens?

Trends in appliance sales tend to follow the housing market. “The ‘good time to buy’ component has declined notably, despite low mortgage rates, due in part to the persistent challenge of a lack of affordable housing supply,” wrote Doug Duncan, Fannie Mae’s chief economist, in a release. Real estate prices are rising so fast relative to incomes, and the market is having trouble keeping up, especially for first time home buyers. Odeta Kushi, deputy chief economist at title insurance and settlement services provider First American shares “Looking ahead, Millennials may be entering a tougher housing market in 2020. A limited supply environment, combined with growing demand and increased competition for homes, is accelerating home price growth once again.” With a drop in real estate sales will come a drop in premium appliance sales.

Being smarter with your marketing spend is the answer. Reconsider your budget and spend if you don’t have measurable data that connects sales to promotions. Plan your complete budget for the whole year and avoid in-the-moment spending because of a media deal. Don’t promote to your whole market if you really just want high-end homeowners. 

At Riley & You, we realize that every dollar counts and we know how to maximize a marketing spend. Contact us and we’ll show you how to better utilize your funds even with challenging months ahead.