Follow This Framework to Have More Success at Your Dealershipby Jamison Hutton Freelance Business Writer
As the owner of a dealership, you might be wondering how to attract buyers and increase your business's profits. Statistics show that the average U.S. adult buys a new vehicle once every 6.5 years. Just a few years ago, however, drivers held onto their vehicles for just 4.3 years. While this trend isn't expected to fade anytime soon, there are several steps you can take to attract more buyers to your dealership.
Offer Holiday Deals and Discounts
Many car dealerships offer holiday deals and promotional events for special dates. Early April, for instance, the perfect time to offer a tax-linked promotion. With millions of Americans receiving checks from Uncle Sam around this time of year, consumers have more expendable cash on hand, thus increasing your chances of generating a sale. This is just one idea to consider when planning promotions. You can use any holiday or important event to attract buyers to your dealership.
Manage Your Dealership's Reputation
When was the last time that you looked at customer reviews for your dealership? According to a recent study, 70 percent of car buyers search for online reviews before making a purchase. Turning a blind eye to your dealership's online reputation could discourage buyers from visiting, especially if users have posted false information. The car dealership industry is highly competitive, and unfortunately it's not uncommon for competitors to leave fake reviews. By monitoring online review sites like Google, DealerRater and Yelp, you'll know if and when someone posts a fake review about your dealership. If you discover a fake review, you can contact the respective platform to request its removal.
Reduce Your Insurance Risk
It's not just your dealership's customers who need insurance. You need it to protect your inventory as well. According to Auto Dealer Today, the average U.S. dealership will experiences one vehicle theft per year. While law enforcement does a pretty good job at tracking down car thieves, it can cause serious headaches for your dealership.
You can protect dealership from the financial burden associated with theft, vandalism or natural disaster by investing in insurance. For cheap auto insurance, consider risk-reduction strategies like securing keys in a locked box, implementing a formal policy for test drives and installing video surveillance equipment.
Consider online advertising to attract customers to your dealership. According to a study conducted by Digital Air Strike, two-thirds of car buyers have clicked a car ad on Facebook. Using online advertising services like Facebook Ads and Google AdWords, you can create custom ads that target prospective buyers in your dealership's geographic location. While advertising costs money, you have to think of the benefits it offers. A single ad click, for example, could yield a new sale for your dealership. And if you're able to scale it, you can generate dozens of new sales through online advertising channels.
Of course, you can also attract more buyers to your dealership by offering incentives. Whether it's no down payment, interest-free financing for 12 months, a $500 gift certificate or a flat-screen TV, buyers love incentives such as these. Granted, you'll have to pay for these incentives, but the sales they'll drive are worth more than the minimal investment they require.
Create a Buyer-Friendly Experience
It's important that you create a buyer-friendly experience at your dealership. If sales representatives are too pushy and aggressive, it may send buyers off your lot and to a competitor's dealership instead. To prevent this from happening, create a comfortable, laid-back environment in which buyers can easily browse your inventory. You can even set up a kid's playroom with toys and a TV for buyers who bring their children. It's the small things like this that will make buyers remember your dealership.
Following this framework will help your dealership experience a higher level of success. Just remember to listen to your customers and adjust your business according to their needs.
Created on Mar 24th 2018 15:00. Viewed 2,860 times.