The car market is crazy right now. Inevitably, the majority of dealerships are suffering due to sporadic demand and supply trends.
However, there are still a few strategies that car dealerships can employ to survive and even thrive in this challenging market.
In this blog, we’ll outline the main strategies for car dealerships to follow when the car market is crazier than usual, and sales are slow. We’ll also provide tips for increasing inventory and lowering prices to help you make more sales and keep your customers loyal.
Don’t wait – take action now and make your dealership immune to the crazy car market right now.
Dealership’s Guide to surviving the crazy car market right now
Yes, the market is sluggish right now. But there are plenty of ways sellers can ensure that they come out of it stronger.
Dealerships can still survive by being realistic about the market and negotiating fair prices on cars and services. Marketing and advertising are crucial here. Stay ahead of the curve by implementing new and innovative car sales strategies.
There is no secret sauce for success – just hard work, good customer service, and willingness to adapt. Dealerships can ride this crazy car market to the top with little effort!
Let’s dive into the details of surviving a bloody market trend-
5 steps to take when your dealership is struggling
When your dealership is struggling, take the following steps to ensure its survival:
1. Close unprofitable sales and shift focus onto profitable ones while continuing to lower prices on inventory items.
2. Evaluate your business and see where changes need to be made. This may result in changing multiple processes, but that is alright. As long as your dealership is becoming better, you have got nothing to worry about.
3. Reduce the number of new car models you offer to cut costs. Standardize, and don’t try to focus on everything at once.
4. Be prepared to make a budget, forecast expenses, and create a plan of action.
5. Rethink your marketing strategy. Physical dealerships are slowly going obsolete. Consider selling cars online and transitioning into a digital dealership.
Advice on Increasing Inventory
If you are one of those sellers opting to increase the inventory size and variety to cope with losses, rethink your strategy.
Experimenting with inventory is the last thing you would want to do at this time.
Here are some tips for dealerships that are looking to increase inventory:
1. Reduce buybacks and discontinue new vehicle sales>
2. Review your online presence and ensure it’s updated with the latest trends in automotive marketing. Instead of expanding inventory, try to reach out to potential buyers with existing stock through more innovative ways.
3. Increase incentives for employees to help bolster sales. Till the market corrects itself, try focussing on aligning your sales team with pushing off old inventory.
Another important aspect of surviving in the car market right now is correctly pricing your cars.
How do you do that now?
Tips for Pricing Cars
Some proven tips and tricks can help dealerships thrive in these challenging times. And pricing strategy can play a significant role in this area-
1. Consider offering incentives for customers who buy new or pre-owned cars from your dealership. This will help you retain customers and attract new ones.
2. Additionally, keep in mind that competition is fierce, so prices and services need to be competitive and offer something unique. Use a car valuation tool to help you determine your car’s worth, and price your car fairly.
3. If you are pricing your car slightly above what other dealerships offer, don’t forget to give some added benefits. This can be free fuel, x number of car services, or simply free home delivery if they buy online.
And while your pricing strategy can be a game changer, it is equally important to devise strategies to increase sales-
Strategies to Employ When Sales Are Low
Difficult market calls for innovation and restrategizing. The ways that might have worked for you in the past might not work for you now.
Therefore, here are some strategies that might help your dealership stay afloat-
1. Dealerships need to make sure that their relationships with surrounding dealerships are strong. This will help them share information about upcoming product releases and events.
2. Additionally, employees need to be incentivized for sales. This can include offering bonuses or pay increases and providing more training and development opportunities.
3. Dealerships that are struggling may also need to rethink their marketing strategy. For example, car dealerships could consider investing in targeted advertising that focuses on the needs and interests of their customers. Or they should start selling online as many digital selling opportunities are waiting to be explored.
4. Finally, car dealerships need to understand their customers and what drives their buying habits. By doing so, they can develop targeted marketing campaigns that will resonate with them.
5 Ways to Increase Customer Loyalty
One of the strongest weapons to fight the market mania is to have a loyal customer base.
Here are five ways that car dealerships can increase customer loyalty and keep the business afloat:
1. Offer exceptional customer service
This is one of the keys to keeping customers loyal. Car dealerships that offer excellent customer service have a retaining customer base, even if sales are low.
Ensure you’re providing a positive experience every time someone comes into your dealership, and try to exceed their expectations in all aspects of the buying process.
2. Keep up with the latest technology updates
As technology moves forward, so do car buying behavior and trends.
Invest in technology that makes the buying process faster and easier for your customers. Also, ensure that all your sales materials are updated to reflect this.
3 . Recognize customer achievement
Some car dealerships go the extra mile to recognize their customers’ achievements – even if those achievements are small. This will reflect your appreciation and make your buyers feel special.
Car dealerships that do this often find that their customer loyalty ratings increase.
4. Be transparent about pricing and other information.
People trust companies that are upfront and honest with them, especially when it comes to prices and sales rates. Make sure you’re always providing accurate information about what’s available in your dealership, both online and in person, and don’t try to hide any questionable practices.
5. Make it easy for people to get in touch with you.
If someone needs help or has a question about their car buying experience, they’re likely to turn to the dealer that’s easiest for them to reach.
Build a customer service team that is well-trained and capable of handling high volumes of calls and emails. Ensure all your contact information is easily accessible online and on your dealership’s premises.
Car dealerships are facing a lot of challenges in the current car market, and it’s clear that the business is not immune to the effects of the recession. While there are many things dealerships can do to survive and prosper, the following tips provide a good starting point. Make sure to implement all of the advice listed to increase the chances of your dealership succeeding in the current car market environment.