If you spend $1,000 on training and it helps your sales team generate an extra $2,000 in revenue, most people would agree that the training was a good investment
There are a lot of tools, services, and other investments your dealership can spend money on that will have obvious returns. There’s training, marketing, salaries, dealership management systems. You can usually correlate such investments to sales figures, reinforcing why you made the investment – or why you shouldn’t have.
But what about those things you pay for that don’t have an obvious ROI?
For example, consider the new coffee maker you purchased for your service lounge. Can you put a dollar figure on the ROI of a new coffee pot? Probably not. But it does have subtle value to your dealership.
Like a mini-fridge stocked with bottles of water, that coffee maker gives your customers an extra little perk — pun not intended — for spending their time and service dollars with you. This improves their experience and their perception of your dealership, making them more likely to return for future service or even to buy a car.
Consider also your employees who get their day started with a little coffee. That coffee maker helps them attack their day feeling more alert, efficient, and productive. That’s a win-win for your staff and the dealership.
As dealership profit margins tighten and you look for ways to cut costs, you might look to avoid purchases of tools, services, and other items that don’t directly affect your revenue. However, while making healthy budget decisions is always a smart move, you should consider what such purchases would mean for your dealership.
Here are some questions you should ask yourself before moving forward:
Does the tool or service make your dealership more efficient?
Does the tool or service improve the customer experience?
What kind of support does the vendor provide after the purchase?
If you’re considering a big purchase for your dealership and you’re questioning the ROI, review these questions before you make a decision. The tool or service you’re evaluating might not have an obvious dollar impact beyond the cost, but a more efficient workforce and happier customers will pay dividends in the long run.