If you’ve been a car dealer in the past couple years, you know how unpredictable the automotive industry can be. Your dealership has probably experienced some of the difficulties and challenges that come with being in the car business, including supply chain issues, microchip shortages, new rules and restrictions, and inflation.
Since the market is always changing, it’s a good idea to look for ways to boost revenue. One way to do that is to diversify your revenue streams. The following are three areas where you can increase dealership revenue.
One way to increase revenue is by taking advantage of accessory sales. The accessories market is growing and is expected to increase from $49 billion to $57 billion by 2024.
In addition to selling floor mats, window tinting, and wheel accessories, you can also sell accessories that protect your customers’ vehicles. If you already use GPS trackers to protect your inventory from theft, you can give your customers the option to keep those trackers and continue to receive that protection after their purchase.
In addition to generating revenue at the time of sale, GPS trackers can create ongoing profit for the service department. If a customer buys a GPS tracker as an accessory for their new vehicle, the device can track the vehicle’s mileage and send the customer timely maintenance reminders. These personalized notifications will help you stay top of mind with customers, and they’ll enjoy the convenience of automatic service reminders.
Once customers come in for service, building recurring revenue requires you to build their trust. Transparency and honesty, of course, are important. But one of the biggest ways to preserve customers’ trust is by protecting their vehicles from damage and theft. Keys stored on a pegboard or in a basic lockbox or drawer leave vehicles vulnerable to theft.
At one dealership, thieves broke into a service department and took the keys to vehicles that were sitting on the lot overnight for maintenance. Incidents like this destroy customer relationships, damage your dealership’s reputation, and ultimately break down trust. Use an electronic key control system to store keys in tamper-proof steel locking drawers so you can prevent theft and misuse. Building trust in your service department will create recurring customers and increase revenue.
Even if your inventory levels are unpredictable, the way you handle them doesn’t have to be. Stocking the right inventory and cycling out aging vehicles will help your dealership increase revenue and be prepared for when the market changes. Use reports from your electronic key control system to track your inventory for you so you’re always up to date on what’s in stock. These reports show specific information about each vehicle, including stock number, mileage, and when the vehicle was last demoed. With these details, you can make informed decisions about your inventory — especially vehicles that have been on the lot too long.
Despite an unpredictable market, there are ways to take control of your dealership and increase revenue. Sell accessories that are beneficial to both you and your customers. Build trust in your service department by taking care of customers’ vehicles and returning them in a timely and efficient manner. Keep track of inventory levels to prevent vehicles from stagnating on your lot. By using these tips throughout the vehicle ownership cycle, you’ll not only increase revenue but also maintain customer relationships so you can move forward with confidence.