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5 Tips to Fight Margin Compression

People, Process, Technology 

Fighting margin compression all comes down to People, Process, & Technology. All three are intertwined and having a solid understanding of them can give you real world solutions to the problems you may be facing. Watch this webinar and learn the first steps to develop your holistic plan to grow margins in your dealership.

 

Tip #1: Hire wisely because turnover is expensive (1:35)

Selecting top talent can lead to a 30% increase in productivity, and a 20% increase in sales. 1/3 of consumers seek out a specific salesperson based on positive reviews.  

Make sure you are hiring the right person for the right position.

 

Tip #2: Invest in your people and culture (8:58) 

Before you invest in your culture you must first define your culture. Is your dealership employee-centric? Volume-centric? Customer-centric? Take the time to figure out what your culture is (or what you’d like it to be). It will guide how you approach your day to day operations.  

A healthy and positive culture can position your organization in a great spot now and in the future.

 

Tip #3: Technology is evolving – are you? (22:17)

54% of consumers prefer to buy from dealers that offer their preferred buying experience, even if it wasn’t the lowest price. 33% of consumers would prefer to complete the entire buying process online instead of visiting a dealership.  

Are you prepared to meet these buyers where they are?

 

Tip #4: Develop a solid, customer-centric process (26:10) 

Technology is NOT a silver bullet! With 81% of consumers stating that they do not enjoy buying a car, there is a huge opportunity to update your buying process, so it fits inside the needs and wants of the customer.  

Focus obsessively on the customer and reduce friction in your current process. 

The easier you make it for them, the higher chance you will have at closing a sale.

 

Tip #5: Accountability is everything (32:54) 

Accountability is regarded as one of the most important tips out of the five. You can execute the last 4 tips perfectly but if you do not follow through with accountability, you have not achieved anything.  

It starts from the top and is carried on by being consistent, setting goals collaboratively, and ensuring regular check points and feedback are taking place.

5 Ways to Boost Margins

Next Up

5 Ways to Boost Margins

Despite numerous disruptions within the auto retail industry, dealerships are substantially reducing their margin compression by reorganizing their internal processes, updating their marketing strategies, and investing in hands-on training and professional development services.

In this e-Book, we discuss key problems and solutions that can help your auto dealership alleviate margin compression and secure consistent financial performance.

Learn More >

 

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Q&A WITH THE EXPERTS

Finding Your Path to Profitability in the Service Drive: 4 Trends Shaping Fixed Operations

Unlock the untapped potential of your service drive and realize the profitability you’re seeking. Learn from our expert panel of fixed ops pros. Plus, all participants will be able to sign up for a FREE consult with our Fixed Operations Consulting team and identify strengths and opportunities within your team to achieve record revenue.

Tuesday, November 10, 2020 at 2 PM EST   |   11 AM PST

 

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