The automotive retail industry may sometimes feel like a race. There are moments when the pedal is to the metal. And there are times when progress is stuck in neutral. But being successful as a dealership doesn’t come from having an all-or-nothing mentality for selling used cars. In fact, achieving operational goals is oftentimes about riding the wave, balancing fluctuations, and anticipating volatility.
Everything from inventory acquisition to pricing will ebb and flow. The only way to excel is through preparation for the evolving aspects of the automotive retail sector. To do that, you must build a foundation that includes securing the right inventory in the right condition…and then marketing and selling it at the right price. But how does a dealership build those processes for the used car industry in 2023? The answer starts with technology solutions.
A proper foundation for your dealership is established by identifying your unique cornerstone. For many dealerships to be successful in automotive retail, you need cars. Without vehicles on your lot, what are you selling? This makes acquisition a very important part of your strategy. As it stands, there are many methods for getting inventory to your store. The traditional tactics of appraising cars and converting them to trade-ins will be a continued foothold for your dealership. But as shopping habits advance, vehicle buying and selling tendencies will change.
This presents an opportunity for your lot to engage with consumers more proactively. Think of every car driving down the street as a potential piece of inventory. Consumer acquisition will be the next frontier for obtaining highly desired vehicles. But not just any piece of metal will do. You will need to work hard to identify potential cars that will perform best for your dealership. Utilize data to understand which cars your audience wants, then strategically acquire them. Your community is unique. Think outside your brand and deliver options that match the needs of your customers.
However, not just any vehicle will do. When acquiring inventory, you need to consider condition on every transaction. The right car in the right condition puts you on a path to success for increased profits, heightened marketing opportunities, and an overall improved customer experience. At the end of the day, condition matters more than you think. Inspect the vehicle with a truly 360 methodology. Condition reports and appraisals need to be conducted with a delicate and thorough lens. Don’t overlook any aspects or minimize the importance of reconditioning. Be honest and transparent, and provide advanced details in ever instance.
When you acquire the vehicles that will perform best on your lot, you set your staff on a path to success. To amplify the quality and quantity of your inventory, invest in proper marketing processes. How you write your ads and where you put them will make a difference. Focus on taking clean photos that highlight your vehicles and show off their distinct traits. Then, couple your images with copy that’s SEO-rich and written directly for the end user. A proper tool for automating ads helps streamline your efforts and maximize your team’s ability to do what they do best…Sell!
The next step in building a foundation for your dealership is proper communication and selling techniques. Your team has the skills to deliver unparalleled customer experiences. For consumers, buying a vehicle is the culmination of a journey that combines online and traditional touchpoints. Because shopping can be stressful, it’s up to you to reduce the friction points as often as possible. Transform your team into instant product experts and educate them on how to sell any make or model on your lot. The more prepared your people are to assist customers, the higher the success rate for sales. On top of that, you’ll move more inventory at a higher gross margin while improving your overall reputation. Be sure to leverage solutions that direct and streamline processes. Your customers will thank you.
After your foundation is built, the last component to focus on is speed. Your turn rate will impact your bottom line. Use data to influence what you stock, how you stock it, where you market it, and how you sell. Next-generation tools provide insights that others simply do not. And the best part is how easily you can integrate anything from an advanced inventory management system or walk-around appraisal tool into your existing solution ecosystem.
Setting yourself up for success starts with partnerships built on delivering the tools your dealership can thrive on. In 2023, the automotive retail industry has moved past mere survival. Instead of guessing or relying on your gut, build a team of allies who can drive you through the coming months by integrating processes that improve every aspect of your lot. MAX Digital has the solutions to elevate your dealership to success. By building a partnership with MAX, you gain insights and data to drive your acquisition, appraisal, marketing, and sales goals. Set up your free consultation today!
