3 Challenges Dealers Face…Are Answers Found at NADA?
- Dealerships are facing new challenges in 2016.
- Solutions to help overcome these challenges can be found at NADA.
You’ve seen the news and undoubtedly heard about it already. But I’m going to repeat it again…more than 17 million vehicles sold. 17 million! The automotive industry wrapped up another record year in 2015. There’s a general feeling of content, of achievement for making it through one of the roughest periods of time many of us can remember. This is definitely cause for celebration, so take a few moments and breathe it in. But, in this always-changing industry, dealerships can’t sit still for too long and need to start looking to the future and how they are going to keep the momentum going.
As discussed in this issue’s President’s Corner, dealerships are facing a whole new set of challenges requiring them to rethink how they do business. What are those challenges, and what can help you meet them head on?
Here’s a deeper look at 3 challenges you’re likely to face over the coming year and what to look for at NADA to overcome them.
Challenge #1: Net profits continue to be squeezed as vehicle sales are likely to plateau or even dip soon.
Solution: Find new profit centers and re-invent familiar ones. There are two places dealerships can uncover more profits: Accessories and Service.
It’s not a secret that dealerships shy away from selling accessories. In the past, accessories selling practices turned out to be too much work for too little return. But, did you know that 9 out 10 car buyers want to buy accessories, and 75% want to do so from you?1 Accessories sales can be streamlined and profitable with the right tool. What could you do with an extra $475 revenue per copy?
Your Service department also has the potential to make you more money, but you need the right processes and technology in place to take the guesswork out of upselling. In fact, dealers have experienced an increase return of $39 gross profit per RO by using a solution that helps them do just that.
Challenge #2: Regulatory oversight continues to intensify.
Solution: What if there was a tool that made compliance a no-brainer and helped you make more money in your F&I department? Non-compliance is no laughing matter with dealerships facing hefty fines and damaged reputations.
With an engaging, interactive, and complete F&I selling system that allows you to electronically present and record the deal process from start to finish, you can cut down on paper deal jackets, keep your team compliant, and ensure that every customer is presented every product each time.
Challenge #3: Consumers continue to expect more rewarding car-buying and servicing experiences.
Solution: Delivering a rewarding consumer experience is not a new challenge, and it continues to echo as a top priority for dealerships. National Automobile Dealers Association Chairman Jeff Carlson recently said, “Customer satisfaction is the nature of auto retailing, and dealers strive daily to exceed the expectations of their customers.” But, then why do 99.6% of consumers not like the current car buying process?2
What’s needed is a transparent, hassle-free experience. Designed for retailing, Reynolds Retail Management System helps you deliver the experience today’s consumers are demanding, making you the one store they visit, buy from, come back to, and tell their friends about.
Reynolds Retail Management System will be on display in booth #2601C. Stop by to learn more and see other solutions in action to help you overcome the challenges you’re facing.
- Specialty Equipment Market Association.
- AutoTrader, 2015.
Automotive News recently published an article discussing why dealerships are sourcing lower-grade used vehicles to fill their lots.