Data from the National Automobile Dealers Association (NADA) reveals that in 2016, new-vehicle dealerships wrote more than 300 million repair orders, and recorded service and parts sales of nearly $110 billion. NADA data also reports that service, parts, and body shop profits make up 47.3% percent of an average dealership’s
Auto buyers consider many factors, both logical and emotional, when they’re determining whether or not they will purchase a vehicle. Outside of the car itself, the most critical factor is their relationship with the dealership they’re purchasing from. The customer-dealer relationship should just be beginning when customers drive off the
Back in the day, the only major interactions most consumers had with your dealership were when they talked to one of your salespeople in person. Nowadays, many those interactions are happening online: OEMs are online, data validators are online, and your dealership is online. In the past, consumers would go
We know that the record sales we’ve enjoyed in recent years cannot—and will not—continue much longer. Soon, dealerships may have to look elsewhere for ways to maintain their revenue and profitability. Fortunately, the best path forward is already right in front of you. Or, better put: The best path forward
Margin compression continues—what can you do about it? Car dealers are notorious for fighting through tough times. Their best right hook is more car sales, but there’s another way to punch back, which is to take some skin off margin compression by using cost and expense control. “Trim” is the
Disruption. Just hearing the word makes some people wince, evoking as it does a surprise, interruption, or abrupt change of course. Most people prefer to have at least some idea of what to expect in the present and future. Disruptions in technology, processes, or ways of thinking that veer away
With the year wrapping up, now is the ideal time to evaluate whether or not your dealership met all of the goals you set at the beginning of the year. Are the sales and service teams that you started the year with still intact, or have they changed multiple times?
In 2002, I was a new Ford Motor Company employee in manufacturing, and my sleep was limited. We had a newborn son who refused to sleep. Why was he crying? I had no way knowing, so I tried everything you can think of—rocking, singing, bottle, you name it . .