The profitability of vehicle dealerships is declining at a high speed. New automobile sales margins have shrunk significantly during the previous two decades. There are a variety of causes for this.
Some of the common ones are stock market fluctuations, dealership competition, manufacturing competitiveness, and a movement in environmental thinking. Customers’ access to information and technological needs are both included in this category.
The majority of these factors are beyond the control of any individual car dealership. If you are facing the same issue, it’s high time to shift your paradigm. Below are top-rated profitability tips to increase car dealership profitability. Some might be new for you while others you may have tried before.
Sometimes the old ones are the most effective! The majority of the time, the simplest ideas are the most effective. All you need to do is practice on a daily basis.
Focus on Recruiting Top Talent
Talent management and car dealership profitability go hand-in-hand this year. According to the National Automobile Dealers Association, the average car dealership roughly employs 64 people.
Your dealership benefits from top performers. Especially those who excel in sales and competent technicians who are known for their customer service. Everything is possible when you have the appropriate team in place. When your dealership’s employee turnover is significant, you’re continually paying expenditures connected with employing new employees.
Invest in Silent Salespeople
Another tip is to place flyers on the dashboards of every car that leaves the forecourt. This will greatly help when it comes to promoting special deals, MOTs, stock clearing, servicing, and Valets.
Also, make sure the cars leave with a brochure marketing your business. Whether it’s a car you’ve sold or a service/MOT you’ve performed, business marketing shall never stop. You may also include a flier with your invoices to ensure that your clients keep it.
Bolster Your Online Presence
In the most recent years, the consumer retail automotive experience has undergone a major paradigm shift. The major change we see is that potential car-buyers are replacing showroom visits as well as test drives with online automotive reviews. Even the vehicle history reports are viewed online now.
In fact, in the majority of the current cases, consumers spend a significant amount of time conducting Internet research. This is happening beforehand so that the buyers only need to visit one or two dealerships prior to securing their favorite car purchase.
Pre-Appoint Sales, Services & MOT’s
Customers are considerably more likely to return to your car dealership in case it resembles a dentist’s office. In simple words, make an appointment for an MOT and servicing when it’s due as soon as they acquire a car!
Make sure to get your customers scheduled for car renewal. In case, if they come in for an MOT, get them scheduled for their next appointment the following year. This will indicate that nothing is bothering your customer as well as you!
Streamline Your Dealership’s Sales Process
Once you successfully establish an enhanced online presence. With the purpose of serving as the initial touch point of your car dealership with prospective customers. It is obvious now you can seek to make your entire in-dealership sales process much more efficient.
Whereas earlier, you might have had ten workers working on different aspects of a car purchase. But now, your online involvement will allow you to use fewer people to close the deal. When your dealership’s website acts as a successful front door, you will be able to save ample money on future facility renovations. As a result, your dealership’s profitability will increase if you are successful in cutting costs.
Offer Special Incentives for Referrals
Everyone benefits when you reward consumers for referring a friend or family member to buy a car from you. It doesn’t have to be actual money. This could be a free coupon. People can use it on add-on sales at your car dealership. They can even make money off their next MOT or service by using this coupon.
In short, give them a cause to promote your dealership business to their friends, other than your excellent service. This is because the majority of people are fickle and you can purchase them easily.
Revamp Your Department
While many divisions within an auto dealership have low-profit margins. The case is not the same for the majority of the Finance & Insurance departments. This is because they are extremely profitable departments having the capacity to make or break overall dealership profitability.
Especially when personnel are given the authority to bargain with automobile buyers.
Ensure Your Car’s Gleaming
One of a car dealer’s most significant marketing assets is its valet crew. If you wouldn’t purchase a sofa with chocolate stains or crisp packets running the cushions, why should you buy a secondhand car?
Ascertain that someone is in charge of the ‘beauty treatment’ of all your inventory. Also, make sure each of your cars is 100% retail-ready all the time. While Sunway auto parts are one of the top choices when it comes to car grooming with quality parts installation.
You can even install decorative LED lights in your parking lot to make cars more attractive.
Draw Special Attention to Special Offers
It should be your top priority to make it clear which cars on your forecourt are on special offer. It is important for your potential customers to clearly see discounts when they drive or walk by your premises. This will better attract them to walk in and start a deal.
Windscreen stickers, signs, posters, and banners work perfectly to grab people’s attention. You can also do this online with stylish image overlays to attract more potential clients.
Never Stop Offering Your Customers
Allow your sales staff to give customers money off coupons for their next visit. This can also be a free part when they purchase a car. Such minor offers will keep your customers coming back for more. Not only this but it also creates brand loyalty, leading to increased profits.
Don’t forget to call prospects to discuss unique offers with them. This might mean the difference between winning the sale and losing out to a local competitor.
There is a big difference between selling new cars or starting the above loop. In the case of the car dealership, you won’t be needing any help from a rocket scientist in order to understand how to increase profitability.
Just follow the above tips and focus on consistency. With positive energy and the right direction, not only car rental but any business can prosper without any doubt.