The Dealership Pivot
Dealerships need to rethink how they make money.
With rising interest rates, mass layoffs, the rising cost of vehicles, the lowering of wages, chip shortages, war, electric vehicles being shipped directly to the consumer, rising food prices, rising gas prices, and consumers developing a total distrust of dealerships …
That's the real problem… the way the consumer thinks has changed!
War time leaders think and act differently than peace time leaders, and dealerships are entering a time of war like none of us have ever seen before. And if dealerships don’t make the flip they won’t be around much longer.
As businesses and communities face instability, companies will struggle to stay afloat and consumers will tighten their belts and start looking for affordable options to keep their vehicles on the road.
They will be looking for the cheapest, most dependable, and easiest-to-maintain vehicles.
It will go beyond just comparing the costs of vehicles – and on to the availability, price, and expense associated with replacing and maintaining the parts for the vehicle.
It will become about finding the best deals, the most reliable parts, and the most cost-effective ways to keep your vehicle running smoothly.
But that's not all.
It’s also about having a convenient way to find information, purchase parts, and get repair work done.
As the economy faces challenges, people will be looking for affordable options to maintain their vehicles. The demand for reliable and cost-effective parts will soar, and dealerships need to be at the forefront of that growth if they are going to survive.?
With parts generally bringing in four times the net profit and service bringing in three times the net profit of equipment sales, dealerships stand to benefit, if they position themselves correctly.
When people don’t have money they aren’t going to be buying the newest and coolest vehicles, and the banks will be coming to get the vehicles of the newly poor.
So people will be looking for cheap, solid, dependable vehicles to drive and they will be needing mechanics and parts to keep those vehicles running.
And higher gas prices could force people from the car, to the motorcycle, and eventually back to the bike and horse.
Dealerships need to be trying to figure out how to build a resource for people who are looking for the cheapest, most dependable, least expensive and essayist to maintain vehicles.
However sadly the average dealership doesn’t even have a way to sell parts online!
