As with any other business trying to "make it" in this increasingly competitive and recession-like market, automotive general managers (GMs) are looking for many different ways to improve their dealership's profits (and profitability).
After carefully analyzing the market, we've come up with this list of ways that dealers -- and their GMs -- can improve their bottom line:
- Make it easier for your customers to obtain financing. Yes, as a general rule, banks are making it difficult for everyone -- even those with so-called "perfect" credit -- to get a loan. However, as an automobile dealer, you have many more financing options available to you than just banks. If you'd like to get more clients -- and increase your bottom line -- tap into those alternatives.
- You get what you pay for when it comes to service. Make sure your customers know that you're about quality service, not just a "churn'em and burn'em" service that's focused on quantity. People are willing to pay extra for superior service...and the more money they spend, the more money you get!
- Don't forget the upsell. Customers, statistically, are more likely to buy an upgraded package when it's presented to them in a financially agreeable way. On the dealership end, however, that "upsell" is pure profit in your pocket (many packages have nearly a 100% markup!).
- Finally, but certainly no less importantly, don't underestimate the importance of employee satisfaction. The more you retain your employees, the less money you will expend on training new ones. It's cheaper, really, to keep your old employees than to train new ones...so make sure the old ones are happy!