It’s the question every motor dealer asks. How do I grow my dealership profit? but in reality increasing your dealership profitability doesn’t come overnight. It involves a clear, well thought of strategy that is both realistic and achievable.
EasyCars has put together the complete guide on how to grow your dealership profit.
Develop your Advertising strategy
Research shows that the average dealership spends 8.2% of their yearly gross revenue on advertising. With that being said as a car expert you want to be sure you have the best strategy in place prior to spending thousands and going nowhere.
As buyers shift their car buying to online it is so important that you understand the different costings associated with the many different advertisers available in the Australian car sales market. Many online classifieds charge per lead, which if you get a few dodgy leads, it could cost you dearly. You should research the different vehicle advertising offerings and set an assigned budget to minimise your risk. You should designate the primary advertisers you would like to use and closely monitor costings and adjust in order to get the best return on investment and to increase your overall profit sales.
Just because many consumers use the large and expensive online classifieds for their next car, it doesn’t mean you have to spend thousands of advertising dollars to entice them. For dealers looking for an alternative there are many FREE online classifieds that often generate better returns.
Another major advertiser for car dealers is Facebook Marketplace. With over 16 million Australian users and the second largest vehicle listing platform in Australia, Facebook Marketplace is a no brainer for motor dealers.
The main point of difference Facebook Marketplace offers compared to large online classifieds is there is no cost per lead. We all use Facebook as an everyday occurrence, the opportunities are endless for dealers who use the correct advertising strategy.
Having a strategic advertising plan in place is essential for increasing your dealership profit in 2021.
Automate your management tasks
Are you sick of manually entering invoices, sales contracts, and advertising? Doing these everyday tasks could be costing your business thousands that you don’t even realise yet. Doing tasks manually often creates mistakes and wastes countless amounts of time that could have been used to growing your dealerships sales.
The solution is a web-based Dealer Management System. A Web based DMS offer motor dealers complete simplified automation of everyday dealership tasks. It slashes the frustrating manual jobs and puts more time in your hands to focus on increasing sales. The best part is you can access valuable information from anywhere, anytime and on any device. This is a great advantage as it gives you complete control over your dealership no matter what the world might throw up.
Don’t understand the importance of online reviews? Statistics show that 81% of customers base their buying decision on your online reviews. If your dealership has countless negative reviews, you could be losing thousands in sales each month!
Asking your customers to leave a review after they have purchased a vehicle is a cheap, fast, and easy way to grow your dealership sales and profit. Nothing convinces consumers to buy something more than someone referring them to the product. Having a number of positive online reviews give your dealership a great perception for buyers which eventually makes them feel comfortable and confident to purchase a car with you.
Where EasyCars can help?
EasyCars is an all-in-one dealer management system that simplifies and automates the everyday tasks of running a motor dealership. Using the latest technologies, EasyCars eliminates frustrations and reduces time-wasting administration tasks to make business more efficient and streamlined today. With complete automation of advertising, integrated accounting, online review management and access to free advertisers, EasyCars is a no brainer solution for today’s motor dealer.
Get started in 10 minutes or less. Contact us today for a FREE no-obligation demo of EasyCars.