COMMENTARY: The only certain thing in business is uncertainty
And the automotive business is not immune. If we look back at recent events that have created uncertainty, it becomes overwhelming, so no need to go through the list — you’re welcome!
But what have we learned?
— The sky isn’t always falling.
— The world’s not ending every day.
— Not every challenge is unsurmountable.
The most important thing to remember is that consumers either love, want or need vehicles. The No. 1 reason people buy a new vehicle is because of a change in their life. Well, guess what? People’s lives are still changing!
It’s true, however; there will be outside influences and challenges that dealers will have to face to be successful. What’s the secret to being able to weather whatever storm comes next? Be more stable.
The more self-sufficient your dealership becomes, the less affected your business will be by those outside forces.
Think of it as controlling the controllables. What are they?
— You are 100% in control of what you put into your evaluations.
— You are 100% in control of communicating with your service customers.
— You are 100% in control of how you price your vehicles.
— Sales teams. You are 100% in control of how you treat them — and how they treat your customers.
Spend more time in the places where you make money and less time where you lose money.
You’re making more money on trade-ins than you are on outside purchases. First, it’s a 2-for-1. The only way to take in a trade is to sell another car. With every trade you take in, that’s one fewer car you’ll have to buy for your inventory.
You’re making more money in service and with “HOMEGROWN” inventory that you sold brand new, and the customer has brought it back for the service and maintenance. You can step up and get these trade-ins and keep your best customers coming back to your store.
Why would you ever try and “steal” your very best inventory from your best and most loyal customer? Step up and make sure they understand why you are stepping up. You can absolutely ask for and get more money for these vehicles.
Your sales team is only as good as the knowledge and tools you give them. We know that consumers today are more money-conscious than ever. They want to know things like: Where did you get this car? Who owned it before? What’s wrong with it? What have you fixed?
Your customers and salespeople must understand the car’s history and how the price was set. Why would you price your vehicles solely based on market average of year, make, model and miles? If your vehicle has a better story than the others in the market, ask for more money! You must replace your VIN-populated generic descriptions with an engaging story to make this happen. Remember, you need to be able to justify that price, and that only happens if your customers and Sales team also knows why you did.
–Just The Fax
By Robert Grill, Carfax Senior Partner Development Manager
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