Top Trends and Tips Independent Dealerships MUST be doing in 2018 and into 2019: The 10 Commandments

Hoping all are having a great start to fall and back to school!

I have been gathering a lot of information the last 18 years, as i am in discussions with dealerships of all sizes and types, not only in Pennsylvania but all around the country. I have specifically zoned in on what i now am again, an Independent dealer. Between my 18 years as a Buy Here-Pay Here and Credit Acceptance dealership predominantly (with use of some other lenders too), and being a consultants in the products and services field, i have seen some common trends and what it is that make those that are successful dealerships versus those that are struggling to earn profits. This is my list of what you MUST be doing as an independent dealership to have an awesome rest of a 2018 and beyond:

1. You MUST embrace Social Media in full force. It is not going away and will only increase in production as the younger generation continues to grow up. It is not just about getting "Likes" although that is important too. It is about active engagement with the customer on a more personal level that will make you more successful as a dealership. Facebook, Instagram, Twitter, Linkedin and onward and onward.
2. You need to automate your listing tools with Craigslist for example. Just randomly posting ads on your own at any time of the day is not nearly effective as a tool like Sure Post offered by Blue Sky Marketing. It needs to be professional, consistent and have a plan behind it and analytics to back that plan up. Craigslist works IF done properly and automated.
3. Texting MUST be the #1 form of communication to stay in contact with your customers and create excellent loyalty. Email marketing is good but not nearly as effective as texting. Nor is the traditional pick up the phone and just call the customer. Listen to this stat: 98% of text messages are read within 3 minutes or less. 20% of emails are opened in 3 days. Enough said here.
4. Advertising: I have used and seen many others use all kinds of companies out there. I am not paid to endorse any one, or two companies so you know. However, in both my personal experience and from the general consensus out there in the market, Car Gurus is the #1 source for high quality leads. Just getting free leads that they provide alone are just as good as some of the others in the industry. Pay a little and receive a lot is the way i see it with Car Gurus moving into 2018.
5. Follow up is so critical. Having a great CRM in place is critical even for independent dealerships today. From the moment a lead comes in to the dealership, all the way through the service side of the dealership. Consistent processes must be in place to ensure success. Just emailing or just making a phone call and leaving a message and then being done with it, is not acceptable. The highly successful dealerships are using a CRM and have a team that are all using a consistent follow up from beginning to end.
6. Efficiency of paperwork is tremendously important. Customers do not want to be at a dealership longer than an hour anymore from beginning to end. You must get the customer in and out as quickly as possible. Moreover, the online buying experience is not fully implemented yet; however, don't think that companies like Carvana and Vroom are going to be the only ones that bring the Amazon like car experience to the consumer. I believe this will trickle down to the smaller independents eventually. So, be ready!
7. If you are selling a VSC (Vehicle Service Contract) and other ancillary products: Without a doubt, you must be set up for re-insurance and/or a profit sharing plan to maximize all the benefits of selling that VSC or Warranty. There are huge tax advantages as well as huge wealth possibilities over even just a 5 year period. I can guide you in the right direction if you are looking for anything in this arena.
8. The lack of treating employees the right way. Too many independent dealerships look at employees in our business as easily replaceable. The dealerships who invest into their employees with training and compensation are the ones that are rewarded in the long term with much more production and less overturn of employees. Get rid of those holding you back; but treat those fairly who will help you grow your business.
9. This is for BHPH (Buy Here- Pay Here) Independent Dealerships only: I ran a BHPH dealership for 17 years and realize one of the top concerns of any BHPH is cash flow. Without proper and consistent cash flow, business cannot function properly. Those dealerships that want to treat the customer the right way by offering a long term VSC, or warranty but do not have the cash flow to offer that extended warranty should take a look at our post sale warranty option thru Rod at K.I.S.S. Concepts Group. They actually pay YOU, when they sell your customer post sale on a VSC. Pretty cool and unique program (Call Back Program).
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11. My last commandment holds true for any business in any industry. Keep an open mind with everything. The dealerships that ask questions and are open to change are usually the ones that i see having success. The dealerships waiting for people to just walk on the lot and buy a car like 10+ years ago is not having as much success. Moreover, the dealerships who say, "we have always done it this way" are also not progressing where they want to go to. Adjust with the times, or else the times will pass you by. Be open to listening to others other than just the person in the mirror.

Thank you for your time with reading this article. God Bless!