Costs are rising and will continue to rise for the foreseeable future.
As a Dealership owner the only way that you are going to survive rising costs is to implement faster and cheaper ways of doing business.
EasyCars has put together 5 Ways Your Dealership Can Survive Rising Costs in 2023.
1. Cut Back on Unnecessary Costs
It may seem obvious, but this point cannot be overstated. The only way that your dealership is going to survive rising costs is to cut back on expenses where possible.
Every business has unnecessary expenses, during challenging times like this it is important that your dealership puts together a report that highlights what expenses you need and don’t need.
Get together with your accountant and list all your dealerships’ expenses. Once done, filter through each expense one by one and determine what expenses you may be able to remove which won’t impact either performance or customer service. Cutting back unnecessary expenses will save your dealership thousands annually and will help you maintain profitability.
2. Condense Your Vehicle Advertising
Vehicle Advertising will always be an essential expense for all Motor Dealerships. That said, there are ways your dealership can reduce your vehicle advertising expenses and still produce the same and even better results. The way to do this is to condense your advertising to only a select few advertisers.
Put together an Advertising Report and see what advertisers are providing a solid return on investment and what advertisers are not. Look at the number of leads each advertiser has generated and more importantly how many of those leads converted into a full paying customer. Once you understand what classifieds are producing results, narrow your advertising to only use the best ones. Reducing your advertising to a select few will save your dealership thousands annually, helping you survive rising costs in other areas.
3. Find Cheaper Ways to Source Vehicles
Sourcing Vehicles has and will forever be one of the biggest expenses for Motor Dealerships. Similar to advertising, vehicle sourcing costs are essential, and yes there are ways to reduce the amount you spend on sourcing vehicles to sell.
The key to sourcing vehicles at a cheaper price is avoiding the common vehicle sourcing methods like auctions and online classifieds. Think about it, the more buyers that you need to compete with, the more you will end up paying for the vehicle.
Try to look for new and different ways of sourcing vehicles. Doing this will avoid you having to compete with other buyers. One of the best and cheapest ways to source vehicles in 2023 is to reach out to your past customers to see if they are or know anyone who may be thinking of selling their vehicle. Since you have sold them a vehicle in the past, they may be more willing to help you out!
4. Reduce Staff Hours
Staff are an important component of every business. But let’s face it staff are expensive. The only way that your dealership can survive rising costs is to minimise staff costs where possible.
It is important that your dealership only employes the required number of staff needed. The last thing that your dealership wants is to have staff sitting around with nothing to do, it will increase your expenditure and reduce profitability.
5. Shop Around
The key to reducing costs is to shop around for better deals on your utilities. Your dealership should make it common practice to frequently review your utilities prices bi-monthly. The benefit of frequently reviewing your costs and shopping around is you may be able to switch to another cheaper provider. Switching to the most competitive provider could save your dealership thousands in utility costs annually!
As costs continue to rise the only way that your dealership is going to survive is to look for and implement cheaper ways of operating. The 5 examples presented are a few great ways your dealership can survive rising costs in 2023.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.