Dealerships are the segue between the manufacturer and the consumer. Unlike other retail businesses that are primarily online, it still has brick-and-mortar appeal. Although customers may research their options online, they still need to test drive and purchase the car in person.
Dealerships – Are They Future Proof?
Amazon and other major online retailers are taking market share away from big box stores. Dealerships are still a personal experience. This makes it a sustainable business for years to come. The automotive sector has withstood many ups and downs over the years. However, there have been many good outcomes and strong performances when things go back up. Some dealerships and brands did better than others. The need for vehicles in America and around the world is high and not going anywhere. People need to get from point A to point B. They want good-looking cars that are reliable and safe. Even if someone keeps their car in great shape for many years, they will eventually need a new one. Every car that someone owns was originally from a dealership.
Dealerships that have great service have done well. It is an old-fashioned industry that relies on salespersons to be knowledgeable and has good communication. Customers have a choice. There are often many dealerships in the same area. If someone is rude to you or doesn’t have what you want, you can easily walkout. Dealerships that are following best practices are building customer loyalty, and getting repeat business.
There are a lot of inventory concerns in this industry. Most dealerships coordinate financing for customers. Money and fees go through many hands. Managing cash flow is imperative. There are several unique accounting items that apply. Jay and his team of accountants have expert advice in these areas. They can help you build your brand and achieve success and profitability.