Numbers don't lie. It's a mindset that's been at the forefront of every auto retail operation I've ever managed or worked with as a consultant. Numbers are the nucleus of dealership profitability. In a softening market, being diligent about your numbers is vital to the health of your store. When numbers are the foundation of operations, better-informed operational decisions happen. For example, have you wanted to hire someone only to stopped because it's not financially feasible? How did …
Time for Auto Retail to Get Lean (and Not Panic)
Are we about to see a replay of the Great Recession? Some auto retail leaders expect a downturn in sales this year and many dealers are experiencing it right now. While no one has a crystal ball, it's clear that many showrooms are not as active as they were last year. When the auto retail market softens, leaders don't panic...they get lean. In times of uncertainty, dealers should work to steady the ship. Flat sales are inevitable and downturns are part of the auto retail cycle. Recognizing …
4 Essentials of Digital Transformation in Auto Retail
If you need convincing that digital transformation is real, just take a look at the evolution in the big shopping malls near you. Dozens of malls have closed in the last 10 years, and many more are at risk of shutting down as retailers like Macy's, JCPenney, and Sears — also known as anchor stores — shutter hundreds of stores to staunch the bleeding from falling sales. The commercial-real-estate firm CoStar estimates that nearly a quarter of malls in the US, or roughly 310 of the nation's …
Why It’s Important to Take a Holistic Approach to Dealership Operations
Today, the customer is in charge. No one wants to spend any more time at car dealerships than they have to. They are looking for frictionless experiences. The industry has now had nearly 10 years to listen to consumer preferences and has done very little to adapt dealership operations to accommodate them. Disruption is at the door and now it seems everyone is scrambling. There are salespeople that buy into digital transformation and have even leveraged the opportunities of the connected …