While working with non-automotive businesses, we’ve seen how managers of brands respond when they need to drive sales volume.
Coca-Cola sales slowed in 2013. The company’s response? An innovation of new product including personalized Coke cans with the first names of consumers on them, plus “green” Coke with lower sugar and a container with a natural logo design. Sales and market share have climbed.
The auto industry has entered a phase of transparent pricing. Instead of becoming defensive, dealers should get innovative.
Consumer still enjoying buying a new car, but clearly the rules have changed. Maybe now, they really want to buy “their” car.
When we work with successful dealership principals across the country, some creativeness jumps out at us. I’ll describe some of them. But there’s no limit to the imagination and creativity of a car dealer.
If I visit 10 Chevrolet stores, most look the same. They all feature that same ’15 Trailblazers in the same black, silver and white colors at the same price, lined up the same way.
But, there are always interesting dealers who change the buyer experience.
When I speak with them about their store’s financials, they often are more profitable, even if their sales volume isn’t as high as some competitors.
So let’s review some best practices, inventory management and creative decisions that you can build profit. Let’s start with what Disney defines as “the moment.”
What do shoppers see at your dealership the moment they pull up? Does something grab their attention?
Here are a few innovative things I’ve observed from working with dealers over the past 20 years:
In an era of transparent pricing, innovation on the car lot is a key profit builder.
Sometimes, I hear dealers complain about not being able to get hot-selling inventory from the factory. But a dealer can create his or her own hot product through clever accessorizing and displaying.
Consider creating an exclusive line only available at your store. Why fight other dealers in an era of transparent pricing when all the consumer really wants is personalization and customization at a great value?
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