2 biggest issues facing independent stores
DealerSocket found that more than half of surveyed dealers for its inaugural Independent Dealership Action Report cited inventory acquisition and access to capital as the top problems facing their business this year.
On Wednesday, DealerSocket director of product marketing Marylou Hastert explained a primary reason why those two problems surfaced through a preview of this report, which is to be released at the Innovate 2015 Conference next week.
“Independent auto dealerships face a tough challenge in today’s market — competing against often larger and better-funded franchise dealers,” Hastert said.
“According to our data, franchise dealerships are seeing an average 617 percent higher yield in gross profits selling used cars. And they’re selling them an average 16.5 days faster than new vehicles,” she continued.
“As a result, franchise dealers are stepping up their activity in an area previously dominated by independents,” Hastert went on to say.
DealerSocket says the new influx of franchised competition is intensified by their big marketing budgets and referral bases.
“Ultimately, independent dealers will be forced to adopt a more innovative, preemptive approach in order to thrive,” Hastert said.
According to the report, independent dealers who leverage technology are emerging successful in the head-to-head competition with Franchise dealers for both used vehicles and customers. The report reveals the following, as listed by the company:
— How Independent dealers can acquire the right inventory, at the right price, in spite of franchise dealers’ access to closed auctions
— The specific software category that consistently delivers substantial revenue growth, but is not utilized by close to 90 percent of independent dealers
— The most overlooked source for independent dealers to purchase used vehicles, while simultaneously increasing revenue
— The key technology most Independent dealers still don’t have that achieves an average 660 percent return on investment — while also enabling them to turn inventory an average 27 days faster than franchise competitors
DealerSocket will unveil its full Independent Dealership Action Report at Innovate: The Independent Dealer Industry Conference, which begins on Sunday in Fort Worth, Texas. DealerSocket president and chief executive officer Jonathan Ord will discuss the findings during his opening keynote.
All Innovate attendees will receive hard copies of the 43-page report, which analyzes industry trends, performance benchmarks and metrics, and consumer online shopping behaviors. Sources include the following, as listed by the company:
— Key performance data from 2,150 independent and buy-here, pay-here dealers
— DealerSocket survey results from 4,000 independent and BHPH dealers
— Experian data from the 2015 Used Car Industry Report generated by the National Independent Automobile Dealers Association
— NIADA proprietary industry analysis
— J.D. Power’s Power Information Network
DealerSocket’s Independent Dealership Action Report comes on the heels of a similar initiative for the franchised market, which was released at the company’s User Summit in August and Auto Remarketing recapped here.
In addition to receiving the comprehensive industry report, Innovate attendees will access more than 80 classes — all more than 1 hour long — that dive deep into compliance, technology, collections, finance, accounting, operations and more.
“Innovate is the only show for Independent dealers and lenders with two full compliance tracks, which by themselves cover 16-20 different topics. In total, attendees will access more than $10,000 in legal insight for the price of admission,” organizers said.
DealerSocket expects more than 500 attendees at this year’s conference, including more than 35 major exhibitors and financial institutions that were hand-picked through an invitation-only sponsor selection process.
To view the full schedule or to buy tickets, visit www.MyInnovate2015.com.
DealerSocket completes Click to Call integration through CRM
Also on Wednesday DealerSocket finalized integration of its Click to Call tool with Century Interactive in a move meant to help dealers using DealerSocket’s CRM and Century Interactive's Call Tracking solution.
The companies explained that managers now can simply click a customer's phone number through the CRM to automatically make an outbound call. This feature is designed to empower dealers to work more efficiently by tracking, recording and categorizing outbound calls dealership sales agents make every day.
“This new integration connects sales opportunities and phone call conversations in the most actionable way possible for automotive dealers,” officials said.
“Simplicity is key when connecting dealers to prospects and returning customers. That's why this new feature is a big win for customers that are enrolled in DealerSocket's Call Management solution,” they went on to say.
To learn more about DealerSocket and Century Interactive Outbound Click to Call Integration, call (855) 516-7631 to speak with a DealerSocket specialist or visit dealersocket.com.