The best thing about starting a new year is the renewed energy it brings. As we quickly move further into January, it’s so important that your Dealership has a clear plan in place for the year ahead.
Like all years, there will be many ups and downs in 2022. But for sustained success, your dealership needs to plan and minimise the effects unforeseen challenges have on your business.
Here are a few ways Australian Motor Dealerships Can Grow in 2022.
Set New Goals and KPIs for the year ahead
Seems obvious right? But you would be surprised how many Dealers fall into the trap of continuing the same goals or KPIs from the previous year into the new year or even worse, don’t have any goals at all.
If your dealership falls into either category the most likely scenario, is you will find yourself in the same position you were in last year.
To start 2022 the right way your dealership needs to create new goals and KPIs for the year ahead. Understand where your dealership is currently at and where you want to be at the end of the year. Motivate yourself, set a strong goal or KPI and work as hard as you can to achieve it.
Related Article: How Motor Dealerships Can Improve Reporting.
Perform a SWOT Analysis
No matter what industry you are in, performing a SWOT analysis at the start of year is essential. A SWOT analysis is a quick report that indicates what your dealerships strengths, weaknesses, opportunities, and threats are.
SWOT analysis builds a foundation for your trading efforts throughout the new year.
As the Australian Motor Industry continues to change, it is imperative that your dealership completes a SWOT Analysis every year.
Here is a breakdown of what you should cover in your SWOT Analysis.
- What are your dealerships strengths?
- What does your dealership do well?
- What do you do better than the competition?
- What are your dealerships weaknesses?
- What areas of your dealership do you feel needs improvement?
- Where is your dealership lacking alongside the competition?
- What opportunities are out there for your dealership?
- Is there a particular area you would like to break into?
- Do you want to expand your dealership?
- What are some of the biggest threats to your dealership?
- What is the competition doing better than you?
- Is sourcing stock going to be a threat?
Your Dealerships SWOT analysis should show you what you’re doing well, what need to be fixed, areas you can grow and any immediate threats to your dealership.
Performing a SWOT analysis shouldn’t be a time-consuming process – this should only take you a few hours to complete.
Analyse your Dealerships Financials
Before you start to push into 2022 you will first need to understand your dealerships financial position.
You need to be sure your dealership has enough funds to pay overheads, source good quality stock and invest in solutions that maximise growth. You also need to consider having funds to cover for unpredicted situations like a downturn in the economy or lockdowns.
Related Article: How to run a Used Car Dealership During Covid.
Understand your Customer
The way Australians purchase cars has changed dramatically in the last 2 years. Studies show that 95% of Australians now use the internet to research for a car they want to buy. To put this into perspective this is double the amount of people that start at a dealership.
To be successful in 2022, you need to understand how customers are finding their next car, what models they are looking for and how much they are willing to spend. If customers are primarily finding their next car online, you need to be sure you cater to them with through Online Advertising and your own Dealership Website.
Related Article: What Australian Car Buyers look for in a Dealership.
Go all-out in the first quarter
Make sure you put all your energy and focus into having a strong first quarter of the year. If your dealership has a slow start to the year, you will find yourself playing catch up.
The benefit of having a strong first quarter above others is it sets your dealership up for a successful year.
Like all years 2022 will be a year of many ups and downs. To be successful your dealership needs to prepare, understand your customer, and build momentum. Using the tips mentioned above, your dealership will go along way to having continued success in 2022 and beyond.
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EasyCars by Jeal is an Australian Motor Industry specific, web-based dealer management system that automates all day-to-day tasks of running an automotive dealership.
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