How do you plan and budget for your dealer management system expenses and maintenance?

1 Assess your needs

The first step to planning and budgeting for your DMS is to assess your current and future needs. What are the features and functions that you use most often and that bring you the most value? What are the gaps and pain points that you want to address or avoid? What are the goals and growth plans that you have for your dealership? By answering these questions, you can identify the essential and optional components of your DMS, as well as the potential upgrades and integrations that you may need.

2 Compare your options

The next step is to compare your DMS options based on your needs and preferences. There are different types of DMS providers, such as cloud-based, on-premise, or hybrid, that offer different levels of service, security, and scalability. There are also different pricing models, such as subscription, pay-per-use, or upfront, that affect your initial and ongoing costs. You should also consider the quality and availability of customer support, training, and updates that each provider offers. By comparing your options, you can find the best fit for your dealership and budget.

3 Track your expenses

The third step is to track your DMS expenses and monitor your return on investment (ROI). You should have a clear and detailed breakdown of your DMS costs, such as installation, licensing, hosting, maintenance, support, and integration fees. You should also measure the impact of your DMS on your dealership performance, such as sales, profitability, efficiency, and customer satisfaction. By tracking your expenses and ROI, you can evaluate the effectiveness of your DMS and make adjustments as needed.

4 Plan for contingencies

The fourth step is to plan for contingencies and unexpected events that may affect your DMS operations and costs. For example, you may encounter technical issues, security breaches, data loss, or compliance changes that require immediate attention and resolution. You should have a backup and recovery plan, a security policy, and a contingency fund to deal with these situations. You should also communicate with your DMS provider and staff regularly to ensure that you are aware of any changes or updates that may affect your DMS.

5 Review and optimize

The final step is to review and optimize your DMS periodically to ensure that it meets your changing needs and expectations. You should solicit feedback from your staff and customers on how they use and experience your DMS, and identify any areas for improvement or enhancement. You should also keep up with the latest trends and innovations in the DMS industry, and explore new features and functionalities that may benefit your dealership. By reviewing and optimizing your DMS, you can maximize its value and potential for your dealership.