No longer is it possible for a Dealer to maintain a competitive advantage for an extended period of time because of simply their pricing and services.
Even if a Dealer can offer unique services, or perhaps even a lower price on similar vehicles or services that are currently being offered, it won’t be long until the competition finds a way to duplicate, or at least pretty closely match that Dealership’s performance. And that puts an end to the competitive advantage the original Dealership held.
So if a Dealership can’t depend on its products, services or prices for their competitive advantage, if they expect to survive, let alone thrive, that Dealers is going to have to perform exceptionally in a number of critical areas.
Marketing Is A Major Key To Success In Dealership
Contrary to popular belief and much misconception, designing, creating, building, and growing a successful and profitable enterprise that commands a dominating position in the marketplace doesn’t automatically require hard work, frustration, and enormous costs.
There’s no question, and you probably won’t get much debate, that there’s more competition, and stiffer competition than ever before, in nearly industry and profession.
But there’s also more opportunity. Especially for Dealer Principals and managers understand a few basic and fundamental concepts.
It really doesn’t matter if you head up the largest Dealership in your city or if you run a 3-person, small used car lot, there are just a handful of things you need to know to gain a competitive advantage in your marketplace.
And mastering just three of the most important of these things will enable you to write your own ticket to success.
You and I both know that the past few years, in both the U.S and Canada, , a huge number of businesses (including Dealers) have closed their doors, never to do business, or provide their products or services to their customers again.
Some analysts say that the major reason for business failure is under-funding – a lack of capital.
Others say it’s because of poor business management practices.
And there’s another school that teaches that many small used car lots are started by the wrong people… that certain people lack entrepreneurial skills, and would be better off working as technicians or employees, rather than trying to run their very own Dealership.
But when you get right down to it, for a Dealer to be in business, in the first place, that Dealership has to have customers… someone to exchange their dollars for the products and services the Dealership sells.
You can have all the funding in the world, you can have great management skills, and you can even have a tremendous entrepreneurial mindset, but unless / until you have someone to purchase your inventory and services in sufficient numbers, you’ll never have much of a successful Dealership; and only enjoy an average income, at best.
Here’s a fact worth considering:
Most Dealers fail because they don’t have enough customers buying from them on a regular basis.
Most Dealers either don’t attract a sufficient number of new customers, or they let their existing or current customers slip away. And, in most cases, it isn’t always because the owners, managers or even sales reps didn’t try.
Quite often, it’s a result of not understanding and implementing effective “customer-getting” and “customer-keeping” strategies.
The bottom line is…
If you really want your Dealership to be successful, you’ve
got to make getting and keeping customers your number one priority.
Let me put it another way. When was the last time you heard of a company going out of business because they had too many happy, satisfied customers buying from them? My guess is, never.
On the other hand, you can probably name quite a few businesses that are no longer around because they didn’t have enough people buying from them, coming back for more and referring others to them.
And that’s where “Marketing” comes in. Letting others know about what you have in such a way that they are compelled... nearly forced to find out more. And then, ultimately, to buy the products and services you offer from you, and not your competitors. Most businesses... no, not most… every business makes mistakes with their marketing efforts.
Some mistakes are worse than others. Some can even be deadly, and if done often enough, or severely enough, can put the very business out of business.
But so much for other businesses. What about you and your business enterprise? How are you doing? Which mistakes are you making that could be holding you back from making the income, and enjoying the lifestyle you’ve always dreamed about?
Take a look at these 20 Critical Mistakes Most Dealers Make. And, as you read through them, think about your Dealership, and see how you’re performing in each of the areas.
Remember, Marketing, or the ability to get your message to others about the goods and services you offer, in such a manner that it compels them… nearly forces them to do business with you, is one of the most fundamental, yet misunderstood areas in business today.
Properly utilized, effective marketing can truly skyrocket a business to new and undreamed of heights.
Not understood, or under-utilized, a business can sink like a lead weight.
If you can get control of your business and avoid making these costly mistakes, you can expect astounding results!
If you only can get a handle on a couple of them, you will still get much better results from your business than you are now getting.
But if you fall short on any of them, and your competition masters them… watch out! They’ll leave you in the dust. And you can’t afford that!
Want to know more? Contact Auto Marketing Profits today on the many ways your dealership may lead the pack.
