Labor Day Is Coming. Where Should Your Marketing Dollars Go?

Labor Day weekend—and the sales events that come with it—are right around the corner.

For dealers, that means another opportunity to turn inventory into sales. But with vehicle prices high and profitability under pressure, where you put your marketing dollars matters even more than usual.

That's where precision marketing comes in. But what does "precision" actually mean?

Start By Understanding the Market Environment

Before deciding what to do with the vehicles on your lot, it helps to understand the environment the brand is operating in. Some brands are benefiting from strong demand. Others are facing more resistance in the market.

Our Inventory Efficiency Index (IEI) score helps provide that context. A score of 100 means a brand's market share and inventory share are in balance. Below 100 means the brand isn't getting its fair share given its inventory position; above 100 means it's getting more than its fair share.

At the national level, Ford and Toyota tell two very different stories.

Ford's IEI score is 84, putting it below the level where its inventory position would suggest it should be. But the trend is improving.

Ford's market share trajectory is moving in the right direction relative to its inventory trajectory, suggesting its efficiency is improving.

That's important context if you're a Ford dealer. The brand still faces challenges, but it's in a better position than it was a few months ago.

Toyota is almost the opposite story. Its IEI score is 145, meaning the brand is generating significantly more market share than its inventory position would suggest. That's still a strong position, but its efficiency has declined slightly from the previous period.

If you're a Toyota dealer, the goal isn't to solve a brand-level problem. It's to understand where performance may be starting to soften.

Find the Models Creating the Opportunity

Now Look at Your Local Market

Of course, knowing which model needs attention nationally isn't enough to make local decisions.

The same vehicle can face very different market conditions depending on where you're selling it. That's the next layer of precision: the local market.

For example, Explorer's national IEI score is 77, but the story becomes even more relevant when you look at individual markets.

In Chicago, its IEI has fallen 22 points, from 109 to 87. Nashville is down 9 points to 72, while Phoenix is down 5 to 64. Camry shows similarly dramatic local variation. Its IEI score has declined 20 points in Atlanta and 22 points in Tampa, compared with a 9-point decline in Chicago. In all three DMAs, its IEI score now falls below the 100  benchmark.

→ Ford dealers don’t simply know that Explorer needs help. They can begin to understand how much more help Explorer needs in their specific market.

→ Toyota dealers don’t simply know that Camry's trajectory has softened. They can see where that softness is most pronounced.

The broader market tells you how a vehicle is performing overall. Local market data tells you where the biggest opportunities and challenges are.

Get Down to the VIN Level

There is one more level of precision, and it’s the most important one.

But even that isn't the end of the story. Because two Explorers—or two Camrys—sitting next to each other on the same lot do not necessarily represent equal sales scenarios. That's where VIN-level intelligence comes in.

VINScore takes precision all the way down to the individual vehicle, where factors such as color, equipment, pricing, days-on-lot, and other vehicle-specific characteristics can influence how difficult a particular VIN may be to sell.

One Explorer may be positioned to sell with relatively little help. Another may have characteristics that make it harder to move. The same can be true of two Camrys sitting on the same lot. They may be the same model. They may even be similarly priced. But they aren't necessarily equally marketable.

And that's where the idea of precision marketing really comes to life.

When you stop asking, "How much should I spend marketing Explorers?" and start asking, "Which individual vehicles need my marketing dollars most?" your marketing becomes more targeted, more efficient, and more likely to drive results.

Make Every Labor Day Marketing Dollar Count

About Catalyst IQ

Catalyst IQ is an integrated automotive marketing agency that helps dealerships make smarter decisions and sell more cars using real-time data, AI-powered insights, and expert human support. From digital advertising and web presence to SEO/AEO and engagement, every solution drives measurable growth.