Dealerships are experiencing constriction across the country. Even for those who have yet to be affected by the long-term economic damage of the COVID-19 pandemic, the sentiment is the same: ways of doing business will be forever changed. Short of laying off employees, there are lots of ways to optimize your operation and focus on what turns a profit. What works best for your dealership may not be the same as the manufacturer down the road, so to get an idea of where to focus efforts, it’s important to start by asking yourself some questions:
- What is the perceived value behind what we sell?
For example, if you sell luxury vehicles, the perceived value may be adding to a personal collection or communicating success to peers. On the other hand, if you’re selling more traditionally functional vehicles the perceived value may be very simple: reliable personal transportation. By identifying the perceived value, you can tailor all of your marketing and sales messages to target the specific customers that are likely to be a source of business.
- Where is my investment?
Identify the three largest investments in your operation. Is there room for improvement on your ROI? Can you add tools or expertise to ensure there’s little to no waste in resources?
- What areas of my operation have remained mostly consistent thus far?
By identifying what’s strong already, you can bolster successful efforts while moving away from less predictable sources of profit. For many dealers, fixed operations is an under-leveraged source of profits that tends to stay near consistent in times of economic constraint.
- What areas of my operation have always struggled?
If something was a drain on resources before, it’s a 10000lb weight now. How can you shed antiquated systems or redundant support to re-allocate that money and energy to what is working?
- What do I have that other dealers or service providers don’t?
What makes your business unique? Why do people pick you over the competition? Find your best qualities and MAGNIFY them!
What’s working in your dealership? What isn’t? Leave a comment below!
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