Steve Hoffacker's Sales Quips

GM (Government Motors) is where they are because of many careless decisions over the years. Once the largest automaker in the world, they are now an afterthought.

They pinned their hopes to an overpriced, underdesigned "Volt" that has totally underwhelmed the advanced hype. They probably couldn't even give away the ones they are committed to producing.

Now they have announced that they are going to be introducing the diesel version of the Cruze in this country. Supposedly is has been a leading seller in other markets, but they have not offered it domestically because they felt that at a higher-price than comparable vehicles it wouldn't sell well. Good call.

Now they are ignoring their own market research and forging ahead - figuring that the miles per gallon estimates will persuade consumers to overlook the fact that it's overpriced. That doesn't even factor in that diesel gas isn't sold by every gas station, and it typically is 50 cents or more per gallon higher than regular.

No wonder GM continues to underperform.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other bloghomesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2011. All Rights Reserved.

Government Motors (GM) continues to find ways to mystify and befuddle. They have told us that can't sell cars as well without the discounts - sounds like they are overpriced for the perceived value - but who told them to suspend the discounts?

They have an overpriced, underperforming, unimpressive Volt that couldn't sell at $41,000 with an $8,000 federal tax credit, so they lowered the price to $39,000 - after Congress refused to give them a point of purchase $8,000 cash rebate as requested.

Now they are preparing to invest $65 million in Tonawanda, NY ($33 million) and Spring Hill, TN ($32 million).

The Tonawanda plant makes engines for the Chevy Equinox and GMC Terrain. The Spring Hill Plant makes engines for the 2013 Chevy Malibu.

They say the NY plant will "create or retain" 100 jobs and that the TN plant will "create or retain" 63 jobs.

They also say that these two plants are part of a total investment of $2 billion in 17 facilities that will "create or retain" 4,000 jobs. Which is create or retain? Don't they know how many jobs they will be creating? Could it be zero and that they are all retained jobs? Callbacks from layoffs or jobs retained in lieu of layoffs? And where is all this money coming from? Are we still footing the bill for this?

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other bloghomesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

GM has continues to prove it has a product (collectively) that is overpriced and worth less than the public is willing to pay.

GM reported strong says when discounts and incentives were in place. They wanted Congress to give a full cash point-of-purchase discount on their Volt rather than the tax credit to boost sales.

Now they report that sales are off because they are offering fewer deals to consumers and have cut their sales to rental car companies. Clearly both of these are their own doing.

Seems like GM has a bad business model - and we are continuing to subsidize them. As stockholders don't we exercise any pull?

GM falls to grasp two key principles of the free market - which is likely why they continue to rely on a government handout.

You must have a product that people want, and it must be priced at what they are readily willing to pay.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other bloghomesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2011. All Rights Reserved.

GM, who is having trouble selling cars now and is getting absolutely no help from their Volt dud, announced that 2 weeks from today it will raise prices across the board on its vehicles by an aveage of $123 - for higher oil and steel prices.

Not a good move. Do they think that they are the only ones experiencing higher oil prices? Have they heard of inflation?

If they want sales, they're going to have to cut prices. If they want to stay in business, they're going to have to cut the fat.

Unless the public perceives a product as being undervalued - not the case with GM - raising the price is never a good way to increase sales.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2011. All Rights Reserved.

Have you heard the latest? Government Motors is going all out to make sure they retain their name. They need the taxpayer to pony up more money to save their incredibly bad markeing and design of the Volt. I find it very amusing but sad,

I don't don't why anyone - and I eman anyone - would pay $41,000 for that ugly car, regardless of what it is supposed to do. I'd still have trouble at $14,000.

That is one ugly car.

It is years beyond its original production date. They are producing 30,000 units this year and plan to make 45,000 next. But, they anticipate only selling about 3,100 cars or 10% of the production run this year. So far, they have sold 602 total in January and February. I imagine most of those have been to collectors or people who just had to make a statement.

So the $7,500 tax credit for buying one of these has not panned out. Now GM wants a "Cash for Clunkers II" program for their inept design and resulting lackluster sales. They want Congress to authorize an immediate cash rebate at the point of sale for purchase of the car - a rebate to be financed by us.

Call your Representatives and Senators. Do not allow this. The free market has spoken.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2011. All Rights Reserved.

GM announced that they are cutting back on expenses due to the shortages of parts from Japan that are impacting their production.

They have closed down some production lines altogether and are looking at cost-cutting measures. It's unfortunate that the earthquake and tsunami in Japan have created the shortages, but the bigger question is timing.

If they can recognize now that they have to curtail production and monitor expenses because the revenues aren't there, why couldn't they have done so three years ago when they came hat-in-hand to the taxpayers?

They just demonstrated that they can recognize a business cycle and deal with it. Where was this wisdom before? Were they sandbagging just to get a government bailout and restructuring? I hope not. Does make you question the timing.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.

Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2011. All Rights Reserved.

GM went bankrupt and would have and should have gone out of business if Obama and Congress hadn't stepped in. Now the UAW is suing GM over health benefits from 2007. Contractually, the union may have a claim; however, if GM no longer existed, how would they get the money? They wouldn't. Technically, GM is not the same company today anyway - it's now Government Motors. GM only exists through American taxpayers. Now, we're supposed to fund their pension plan (actually their former Delphi divison)? Well, with Obamacare, maybe we'll end up funding it anyway.

Part of the reason GM and many other manufacturers went out of business, declared bankruptcy at least once, or lost jobs and production to overseas markets is the unions. You can't continue to compete against lower wage markets with unions demanding higher wages and more benefits. Too bad the unions didn't realize this years ago. Too bad management didn't realize this years ago.

UAW should back down. GM doesn't have the money. Forcing the issue will only cause Congress and Obama to dump more of our money into the company. We can't afford that. Tough times call for bold actions.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings.

© Steve Hoffacker, 2010. All Rights Reserved.

Did you know that your brand new Hummer or that late model luxury car is now officially designated a "clunker"?

Today, Congress approved their "cash for clunkers" program where they are authorizing incentives (that they don't have) in the amount of $3500-4500 for people to turn in their "gas-guzzlers" for more fuel efficient cars. "Gas-guzzlers" are what they are now calling "clunkers." Who knew?

When I hear the term clunker and car in the same sentence, I think of something at least 20 years old that has run in the demolition derby a few times.

Is this what we have to look forward to with Government Motors?

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To learn more about my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings.

© Steve Hoffacker, 2009. All Rights Reserved.