Managing a car dealership is no simple feat.
Like any business, there are multiple facets that all need their fare-share of attention, Whether it’s employee relations, used and new car inventory ratios, online sales, or advertising, all while keeping up with ever diminishing margins and advances that this technology-driven world is constantly delivering.
Staying ahead of the competition requires that you’ve got a team that can deliver consistently.
While it’s a daunting task, using dealer inventory management best practices can help you improve per-vehicle margins whether sales are increasing or slowing.
Invest In Your Employees
The best way to improve your car dealership is to look at your employees and see them as an investment and not as an expense. That way, you would have to problem spending money on training them.
Think about it. You spend loads on advertising but if you get the leads, is your salesperson good enough to keep those leads? And can they turn them to customers? That is also something that you should invest in.
With trained employees, they’ll be more equipped to know what to do. This can help them be more confident in their roles. Additionally, it will help you get more sales. Training should be a priority as it can save you from losing potential customers.
Choose Other Cars From Your Inventory
What do you do if the specific car your customer is looking for isn’t available on hand? If someone calls up to ask how much a certain model costs and you don’t have it, do you just tell them that it isn’t available?
If you are so focused on what they are specifically looking for, then there’s a great chance you’ll miss that potential sale. Not all people who go in for a specific car end up buying that same car. Some end up buying a very different car.
So the next time a customer asks for a specific vehicle that you don’t currently have, try to pursue them into getting something in your inventory. You can do that by focusing on what they want in a specific car and giving them other options.
Look Into Your Previous Customers For Leads
If you’ve already sold a car to a specific customer and gave them a great experience in purchasing their vehicle, they are likely to remember that. The customers are most likely to want the same great experience again if they decide to buy another vehicle. That’s why you shouldn’t forget to look into your previous customers.
Additionally, even if they might not purchase another vehicle, their spouse, children or other family members might. It is always good to build relationships with your customers. They can refer you to others who might be looking into purchasing a vehicle. That’s the best advertisement for your dealership.
Follow-up On Leads
Not all people who go into your dealership go out as customers. Sometimes, they need time to shop around first. You might think that only serious buyers would immediately come back to purchase vehicles. However, each customer is different.
Different people take different times to decide. Even if it has already been a month, you shouldn’t forget to follow up on your lead. Call them up and talk to them to refresh them about your offers.
Let Your Customers Leave
It can be difficult to see a potential customer leave the dealership without purchasing a car. However, you and your salesperson should know when to say goodbye.
Sure, you try to convince them as much as possible. But, not all people can make the big decision of buying a car in an instant. They might need time to talk about the purchase and that may not be done as quickly as you hoped.
The best thing to do is to let them leave but don’t let them see you disappointed or irritated. You should still let them feel good and valued even if they left the dealership without a purchase. They’ll remember that nice experience. Then they’d come back looking forward to another nice experience when they purchase.