Wait, did I say if?

I meant when!

In this business, something will always eventually go wrong. Whether it’s because of outside forces or it’s self-inflicted, it’s only a matter of time before something disrupts how we operate. You can’t rely on things running smoothly all the time.

It simply doesn’t work that way. You always need to have a backup plan; having one in place allows us to adjust quickly — and reduce the impact of that disruption on our business.

Take the latest event. Looking at it realistically, dealers rely heavily on cloud-based systems. On one hand, these systems absolutely allow dealers to operate faster and more efficiently. But what happens if they sputter or shut down? Do you close up shop and wait for it to be rectified?

That’s never the best answer — but that may be the case if you don’t have a backup plan.

Let’s look at the recent past. Plenty of things have gone bad at some point. Everything from COVID, chip shortages, shipping backlogs, major recalls — and that’s just to name a few! Well, guess what, they’re going to keep hitting.

What’s the answer?

Put in place a review of your business systems — at least twice a year.

Everything from software and how you conduct business, down to your physical inventory — and everything in-between. Let’s look at the “What If?” scenarios. Let’s ask ourselves and our teams: What do we need to do to be able to keep doing business?

Listen, the reality is it’s not always that complicated if you’re prepared:

  • For inventory supply, reduce inventory purchases at auction or other outside sources. Increase homegrown inventory by creating an environment that drives sales to service loyalty, making all new car buyers loyal to your Service department. This will automatically improve your customer sales retention.
  • In sales, it can be as simple as keeping paper buyer’s orders around, just in case.
  • In service, you may just keep a supply of handwritten RO’s.
  • For your property, it may be adding or making sure a back-up generator is in place and in working condition

 

There’s always something just over the horizon. Just make sure you have a plan to limit the impact.

–Just The Fax

By Robert Grill, Carfax Senior Partner Development Manager

Read Just The Fax on Auto Remarketing | Follow Our Podcast | Email Bob Grill