A small dealership can be hard to build from the ground up. Such a statement has never been more true than it is today, as many car dealers are facing struggling sales to get by. Still, there are ways to counter the decline, and many dealerships are utilising these methods to keep their companies firmly afloat.
Consequently, here’s how to grow your small car dealership effectively.
While the market and sales figures are shrinking, there’s still some potential for quality sales. More to the point, it depends on how you make the sale; what packages you offer, what add-ons you include and what insurance premiums are available. More acutely customising the deal can keep customers coming back to your dealership, even after they’ve left the lot with their new car.
For example, if you allow customers to buy your cars on credit in a personal contract purchase plan, you can receive payment in monthly instalments and keeps customers contracted to come back in three years. When they return, they’ll have the option of handing the keys back, buying the car for the fixed price, or put their guaranteed sum toward a new vehicle. These long-term deals offer more flexibility and thus appeal, rather than demanding an expensive, immediate investment from the customer that they can’t afford.
Before you sell anything, you need to know what prices to aim for. If you rip customers off, you risk turning them away in droves, especially if you’re selling dodgy vehicles for heightened prices. Each car must tick off multiple boxes on an extensive valuation criterion, and if it misses but one, your car dealership can flop before it’s even had the chance to grow.
However, companies such as CAP HPI offer extremely efficient vehicle valuations, providing your dealership with the essential information it needs to run smoothly. This data will help you manage your stock and shift it all for the right price, growing a legitimate business instead of struggling with a shady one. If your prices are consistent with what’s going on in the market, your dealership will be seen to be legitimate and fair.
Many dealerships, and other businesses for that matter, often underestimate the power of reputation. However, the trajectory your business takes is rather reliant on positive word of mouth. All it takes is one customer or visitor to have a bad experience, and your dealership is lumbered with a poor standing that is communicated to all irked customer’s friends and family.
To start with, avoid the pushy and manipulative sales pitches, as customers not only see straight through this, but also feel incredibly vulnerable when encountering these salesmen. Desperation isn’t attractive. If you’re relentlessly trying to lump them with your poorer stock or trying to dump irrelevant insurance deals and add-ons on them, it will put them off your dealership. Deal with everyone respectfully and tailor your service to each individual so their interests are at heart, and your reputation and dealership will grow from here.