How do I get the "Blue Sky" in 2018?

Now that we have stopped patting ourselves on the back for what many consider to be a monumental year it is time to shift your focus forward and figure out how to do it all over again. Based on many accounts 2017 was a very successful year to say the least. The best dealers I speak to attribute their 2017 success to a sharper focus on the customer and leveraging better processes and cultures to empower their people. Do not minimize just how strong our industry as a whole was for the year. Many dealers have simply benefitted from being along for the ride and will soon be getting a harsh wake up call.

As someone who has been in the car business since 1988 I feel that this has been one of our easier years. Our robust economy has given a lot of dealers a "False Sense of Accomplishment". I am constantly inside dealerships and have conversations with everyone from the lot man to the owner. Many dealers live in the illusion of being busy while spending obscene dollars on additional staff and tools to create efficiencies. These dealers are performing below average at best and have convinced themselves that the additional money flowing through the doors has something to do with their abilities and overall performance. I have seen dealers that sell 120 cars per month and less than 1500 repair orders monthly that employ over a dozen people with the word "Manager" in their title. These are the dealerships that the large groups target for acquisition because it is so easy to put an additional 20% to the bottom line with a very simple haircut...

Here is where EVERY dealership can make an instant improvement TODAY!!!

OWN YOUR CRM

Most dealerships use their CRM like an electronic notebook or simply to "Check The Box" and passify a manufacturer. Dealers pay 100% of the bill and most use less than 20% of the tool. Hold these companies accountable for training and support or replace them. You should be marketing to your database regularly with these tools and growing your business in both service and sales. Make sure that your product works on mobile phones, set up your people for success. Build out proper processes and follow them. Your next GM is your BDC manager today...

STOP BEING A VICTIM

Take a hard look at your DMS and be open to a change. The two major DMS providers have controlled this market for years through fear and intimidation. When you look at the insane monthly pricing, third party date fees that YOU pay and the limited flexibility of their antiquated products a switch here alone should will drastically move your bottom line upward.

JUSTIFY THE STAFF

Stay true to your metrics and numbers. Do you need all these extra bodies? Can you afford all of them if your gross revenue goes down10 or 20%? Five to ten years ago you multitasked and did not have anywhere near the tools available to you that you do today. Leverage the investment in technology to create efficiencies. There is no reason for the Used Car Manager to spend two days per week at the auction. The Service Manager should not need to close the door to his office for a day to prepare for a warranty audit. The controller no longer needs 5 days to close a month and the sales manager should spend almost zero time figuring out budgets and advertising direction if utilizing proper tools.

EMBRACE TECHNOLOGY

Take a good look at what the market has to offer in the form of technology. Spend the money for proper reporting to minimize wasteful ad spending. Spend some time at NADA and be open to change. With technologies such as geo-fencing, ringless voice mail and texting capabilities there many new ways to outshine your competitors. Look at your statement and make adjustments to afford these tools, do NOT simply add more money to the budget, remember were are trying to become lean.

LEVERAGE WHAT YOU HAVE

Before buying something, look at your current tools to see if you already have it on the shelf. Most CRM and the more advanced DMS platforms offer reporting that will blow most dealers minds. Consider whether you need to spend several thousands on a data mining tools when you probably already have one in your CRM. If you properly populate sourcing data in your CRM and DMS you have all the reporting that you will ever need. Don't be oversold!!!!!

Here are the 10 things I would look at in 2018 for my dealership.

1. CRM, use it fully or replace it. Leverage mobile functionality.
2. DMS, get out of the abusive relationship.
3. Service Scheduler. Look long and hard at this. This is where your money is made...
4. Key Machine. Keys cost way too much to replace. This will save time, money and improve CSI.
5. Re-evaluate staff. Make sure that everyone is social media friendly and embraces technology.
6. Eliminate redundancies then invest in proper tools. Do you need to spend thousands for a data mining tool that comes with your CRM? Take these additional monies and invest them on a better website or multiple websites. Remember that this is today's showroom.
7. Rebuild your processes. Look at the process from your porter to your GSM and get them aligned. Spend the time to map out processes within the dealership and then require them to be followed. Customer expectations are not going down. 
8. Consider the Haircut. Look at your dealership through the eyes of a potential buyer. What changes would be made after the buy/sell? What efficiencies would be gained? 
9. Look at your sales process. If you are still on a "Four Square" system or "APB Track" it may be time to add some transparency to your process, this is the customer expectation. If not, please reach out to me so that I may make you an offer to purchase your store.
10. Focus on your current customer. Create raving fans out of your current customers. these people are your best opportunity for growth. Leverage social media with your database and be community servant.