As we discussed in our last edition of this series, things are changing in the automotive sales industry with massive consolidations indicating a trend towards fewer dealerships in the market altogether. Autonews.com reports weak sales for most major manufacturers in early 2019, although the lag could be attributed to the traditionally slow spring season.
Preparing for industry changes can be like keeping your fridge stocked; although it would be better to buy more milk before you run out, you probably won’t head to the grocery until you’ve used the last drop out and feel the need to get more. Anticipating industry changes and making adaptations before you need to could just be the difference between staying in business and closing your doors, and we think 2019 is the year to start the transformation.
Knowledge is Power
The first step to optimizing your dealership is collecting data on all aspects of your operation from customer satisfaction to service times so you can clearly see what’s working, what isn’t, and what has room for growth. Look for ways to reduce investments and keep your capital liquid, as well as ways to streamline systems through the implementation of new technology.
Your Customers Are Your Business
Loyal customers are key to surviving times of industry recession. By investing in the relationships you build with customers, you save thousands in marketing by nurturing retention and referral business. Look for ways to improve connection points, service offerings, and standard procedures for customer relations.
We’ve created an extensive library of free e-books, DMS education, parts inventory education, and more editions of this series exploring industry trends and helping you prepare for the future of the industry.
Thoughts, questions, or opinions? Get in touch!