How do car dealers survive in uncertain economic times? Understanding the changes in the auto industry is critical to doing business successfully. The cost of consumers, labor, parts, and supplies is skyrocketing. Dealer franchises are feeling the effects. How will the dealership industry continue to thrive? It isn’t easy.
Car dealerships are usually understaffed. That means the few people there have to work way harder. Their job is already stressful enough. In this article, I’ll show you how you can learn to cut your stress levels by learning how to overcome uncertainty.
Focus on Building and Deepening Relationships with Consumers
The car market has become competitive. Both used-car dealers and new-car dealers face intense pressure to sell more cars.
Yet, some dealerships are still selling a lot of cars. It raises the question: How do they do it?
One answer is that they have a better relationship with consumers. When a consumer buys a car, he usually has only one chance to get it right. If he makes a big mistake, the dealership is often stuck with the car.
So, how do dealerships build such relationships? They have a clear understanding of what consumers want, and they work hard to fulfill it.
Use YouTube to Connect with the Community
YouTube is a great way to connect with potential customers. It’s a place where people consume lots of video content. They include car reviews, car commercials, funny car videos, and car-related music videos.
You can use YouTube to get the word out about your business. You can discuss and demonstrate your products and display your customer service skills.
Video content can be anything from product demos to testimonials from happy customers. You can record everything yourself or work with a professional video production team.
Being Flexible and Pivoting
Most auto dealers have been in business for decades. Because of this, they have had time to plan and adapt to shifting market conditions, including the current pandemic.
But during the pandemic, many of the business fundamentals dealers were forced to adapt to no longer existed.
Some dealers used this time to reinvent themselves and refocus on selling new cars and trucks. Others used this time to simplify operations, while others used the time to streamline their used car operations.
At the same time, many dealers have found themselves in an uncomfortable position. They no longer had either the time or the option to adapt to this new reality.
But here’s the thing:
Regardless of where you fall on this spectrum, you still can adapt. One of the critical success factors in surviving and thriving during these times is your ability to pivot.
Pivoting is the act of modifying direction or course when things aren’t going as planned. It can mean changing course to pursue a new opportunity, or it may mean shifting focus from one project to another.
According to Carooga, a company that specializes in online car buying in Canada, “you have to adjust to protocols during the pandemic. Also, you need to pivot to keep your car dealership operating.”
Explore Ad Options with Facebook Ads
Advertising on Facebook can be a great way to target your audience, connect with them, and increase your earnings. By targeting Facebook ads to specific audiences, you can increase engagement, get more sales, and grow your business.
If you’re a car seller, Facebook ads can help you connect with people interested in cars. You’ll know what they’re looking for and direct them to your website.
Improve Overall Customer Experience and Strengthen Transactions
When times are tough, being open and transparent about inventory, prices, rebates, incentives, and financing can be difficult for car dealers. But, if customers view your dealership as a trusted and transparent resource, you’re more likely to retain their business.
In today’s market, transparency is crucial. Consumers are demanding it. You must show customers you understand their needs, inventory, and financing options.
The automotive industry is experiencing a transformation. It’s unlike anything it has seen since the invention of the automobile. Customers are buying vehicles online and through third-party dealers. Traditional car dealerships are losing many sales to online and third-party dealers. So, dealerships need to find new ways to reach customers and drive sales.