Welcome to that time of year for car dealerships again: It’s the scary season!

Let’s have a little fun and look at your business like it’s Halloween. It may be filled with lots of things that can frighten you. But on the other hand, it’s also filled with lots of great treats. All you have to do is: Don’t let things feel scarier than they are.

Is it easy? No. Is it realistic? Absolutely.

Let’s look at where you’ve been lately. Is there anything in your world today that’s scarier than a pandemic, major recalls, a lack of inventory and supplies, or shipping restraints?

Guess what? You made it through all that adversity. You’re obviously capable of handling any new challenges that are thrown at you.

Here’s the good news: You got this!

All you need to do now is not to overreact. Slow down and think your issues through. When you do that, you help yourself limit your mistakes. Notice I didn’t say eliminate them. You’ll still make some; we all do.

The “TRICK” is to control your future by staying on offense at your dealership with a thought-out gameplan (see September’s Auto Remarketing column). Part of any good gameplan is to build in a second or even a third plan, with contingency adjustments.

What should you be looking at?

Review your look-to-book trade conversion percentage.

—What is your trade appraisal process?

—Do you need to work on your trade appraisal process?

—Are you using an “active” (customer involved) trade appraisal process?

Review your service department inventory acquisition strategy.

—Do you have one in place?

—How effective is it?

—How many a month are you generating?

Review your sales-to-service loyalty conversion percentages.

—How are you performing?

—What changes in your process are needed?

—What roadblocks are there and how do you eliminate them.

There’s no crystal ball to predict the future in this business. There is, however, logic. Logic tells us that if dealers have a good plan in place, they are less subject to outside influences and challenges. Logic tells us the more self-sufficient dealers are at generating their own inventory – and loyal customers – the stronger and more resilient they become. The bonus is, of course, it’s also more profitable!

You have a choice to make here. Be prepared and face whatever comes next or just simply wait and see what happens and hope it’s not too “SCARY.”

–Just The Fax

By Robert Grill, Carfax Senior Partner Development Manager

Email Bob Grill