Are you looking to boost the profitability of your car dealership? In today’s competition, it can get hard to seal a car deal with customers. Heck, it can even be hard to find prospects at all.
That said, you have to take the extra measure to improve your dealership’s profitability. Here are eight ways how:
Bolster your F&I
Your Finance & Insurance department can make or break a car dealership. Are you offering profitable F&I? Make sure to offer financing loans, asset protection, and extended service warranties that come with your vehicle to entice more prospects.
Offer unique customer incentives
From gift certificates to reconditioning services, you can improve your car dealership sales by offering customer incentives. The more unique your offer is, the more likely you will increase your profitability.
Make financing options available
Ensure your customers can easily get funding to strike a deal. Affordability is a common reason why prospects don’t push through with the deal, that’s why it’s important to help them get funds from financial services company.
Provide training to your team
Aside from your products, your sales team is the meat of your business. Groom them to be pleasant and knowledgeable employees that will satisfy customers. Focus on improving their communication skills thru roleplays and regular discussions. Rewarding the most productive employees will also encourage them to do better at work.
Keep up with the pricing
Perform regular market comparisons to know where your car dealership ranks. Are your competitors selling at a lower price? Do they offer additional incentives? It wouldn’t hurt to analyze their strategy and find out what they do best. Then, make the necessary adjustments to have a more competitive offer than your competition.
Enhance your online presence
Gone are the days when customers go to a dozen car dealers to find the best offer. Now, they know well to use the Internet to conduct their own research about what they are buying. That’s why you need to establish your presence online. Share useful content such as ‘how to’s’ and engage prospects on social channels. Also, work on optimizing your website to show on the first page of search engines like Google.
Streamline your sales process
An efficient sales process involves shorter time completing a deal and more time dealing with different customers. So how do you achieve this? Digital processes are one way. Aside from building your online presence, use software and mobile apps to reach your prospects.
Extend your opening time
If you’re not available past business hours, you lose valuable opportunities to meet with your prospects. Remember that your customers are in the workforce, and they’d usually reach you after business hours. Consider extending your opening time for a few more hours on weekdays and operate on weekends.
Increasing the profitability of your car dealership lies in the extra effort you put in. As an auto dealer, you have to offer more than the usual service businesses can give. You also need to equip yourself with knowledge of the latest trends to keep up with the competition. More importantly, you have to focus on improving your team as they are your direct connection to your future customers.