New Auto Dealers gaining an edge...
Dealerships, if they haven't already, are going to have to adjust to their business model to maintain, survive, and (hopefully) flourish in today’s market.
Here’s a bold statement (do you agree?): auto MANUFACTURERS actually Sell vehicles whereas auto DEALERS actually Service vehicles.
Where are the profits made in ‘selling’ new vehicles these days?
When selling new vehicles, dealerships today realize more income from servicing the vehicles than from selling them. Statistics show that selling new vehicles today is trending more towards significant loss per ‘sale’ than ever before (and it’s not getting any better). At some point dealerships have to look in the mirror and change tactics accordingly. This is chess, not checkers…
I'm not referring to growth in profits from servicing vehicles only, because that’s going to continue anyways, so much as servicing the customer themselves...this is the only market that should matter.
It’s my opinion, dealerships should consider to divert advertising monies that are, for the most part, ineffective and place more emphasis on recognizing their own customer base for what they are, VALUED and then treat them differently from what they had been in the past. If dealerships diverted the tens of thousands of dollars that they spend every month for ad space and placed them back with the customer to offer up free oil services, free details, free all weather floor mats, free gas vouchers, etc., what would the residual effect be? Would this kind of attention make the customer feel valued or ignored? Would this drive the customer away or bring them closer? Would this kind of outrageous act disappoint or please the customers? If it was paid attention to on a daily, weekly, monthly basis would it create trust? Dealerships have to answer that question personally. Is it possible that it might create the only advertising platform that is the most effective by other potential customers, I’m referring to word of mouth….
I understand that the initial reaction from the customer base probably wouldn’t be any different than if the dealership had done nothing different, but thru consistent effort dealerships are going to have a better chance of being their first (maybe, only) comfortable choice for servicing, parts, and sales. Only because different is the name of the new game? I feel very strongly that doing business as usual will do nothing but bury the dealership faster from opinions of the public already formulated. Its more important to show how much the customer is valued.
Growth will not be awarded to how business used to be conducted? As my Army Special Forces buddy used to state, "used to be's (bees) don't make no more honey", quite true!!
Today's auto market (and quite frankly ALL OF RETAIL?) DEMANDS a more personal touch, a true interaction with care that builds trust in order for a dealership to have any residual relevance with their customers. Trust is the only thing that is going to allow a dealership to grow.
Dealerships should invest in selling trust, its the only game worth getting great at...period.