Even luxury auto dealers got in on the “cash for clunkers” action, according to Garth Blumenthal, general manager of Fletcher Jones Motorcars in Newport Beach.
The federal trade-in program “stimulated business at all levels,” he said
Of course, most who bought through the program—which gave up to $4,500 to trade in an old auto for one with better fuel efficiency—didn’t go for a Mercedes-Benz at $50,000 or more.
Entry to midsize autos benefited most. The Toyota Corolla and Ford Focus were two of the best sellers.
But Blumenthal said the program got people thinking about auto shopping.
“It stimulated interest again and made people feel like they could go out and spend money,” he said.
Some business owners saw their employees buying new autos, which spurred them to feel better about buying a Mercedes or other luxury vehicles, he said.
Sales at Fletcher Jones picked up from June through August, according to Blumenthal. Sales have slowed since, which is typical for this time of year, he said.
Sales of certified used cars have been strong, as well as those of high-end autos, Blumenthal said.
In the past 30 days, pricey models, such as the SL65 AMG Black Series—which goes for $300,000—have been selling well, he said.
“There’s an awful lot of cash being bandied around on high-end cars,” Blumenthal said.
Credit is loosening up, he said. There are more sources for loans, and banks are looking for business again, according to Blumenthal.
Predicting sales for the year versus 2008 is hard, Blumenthal said. The level of sales is likely to be flat but profitability will be up because of cost cutting, he said.
Auto Fundraiser
Tustin Auto Center auto mall raised $80,000 with its Help Our Schools fundraiser, which ran from Aug. 1 through Sept. 7. Dealers donated $50 from each new or used auto sold. The charitable promotion is credited with helping to sell 1,600 cars.
Boutique Blog
After Erin Hall was laid off in January from her boutique management job, she teamed with April Madigan, a former assistant boutique store manager, to set out on her own.
They didn’t open a store.
Rather, about six months ago, they started a boutique marketing company called Boutiquing.com in Irvine.
The pair uses social media sites such as Twitter and Facebook to generate traffic to their blog, boutiquing.com, which reviews and promotes boutiques by city in Orange County. The unpaid reviews have a personal touch.
A review by Madigan on Santa Ana’s The Road Less Traveled store: “The owner, Delilah, greeted us with a genuine warmth, welcoming us to explore uninterrupted and, when asked, offered great enthusiasm for and knowledge of her undiscovered local lines, as well as her dedication to environmental education. I literally stopped in my tracks at the sight of a piece of kale dipped in bronze like a preserved baby shoe, and daintily dazzling on a gold chain … who knew a veggie could be worn out to dinner?”
The blog has about 100 boutiques listed so far.
Many local boutiques are competitive with chain boutiques, Madigan said.
“They just don’t have a way to get the word out,” she said.
Madigan and Hall recently held a boutique sale at The Village apartments near Irvine Spectrum Center, bringing together 30 boutiques such as Patina in Costa Mesa, Adrift in Laguna Beach and Carmen Parks in Huntington Beach.
Starbucks, Veggie Grill and The Village helped sponsor the event. The venture was the first revenue-making event for Boutiquing.com.
The bloggers, who planned and promoted the event, charged the boutiques a fee to sell their wares. It also charged a $10 admission fee.
The event helped boutiques sell merchandise that hasn’t moved as quickly as before the downturn, Madigan said.
At the same time, the event helped boutiques get their names in front of shoppers.
“We’re really a marketing and public relations company,” Madigan said.
Boutiquing.com has kept its overhead costs low. The blog gets free office space at The Buddy Group Inc., a video production company. Madigan’s husband, Pete Deutschman, owns the company.
“He’s been very helpful,” Madigan said.
He suggested they start with a blog and build from there.
The blog costs nothing except time. It gets about 6,000 visitors a month. About 40% of the visitors come via social media sites.
In October, Boutiquing.com plans to launch an expanded Web site. Hall, a graphic designer, is creating it. Once the site is up, Madigan and Hall plan take the boutiquing.com model to other areas dense with boutiques.
