4 Methods to Increase Dealership Revenue
APC emphasizes the power of increasing dealership revenue beyond vehicle sales. There are many overlooked dealership revenue opportunities, and these are a great way to transform the bottom line. Here are four methods that owners and general managers of dealerships use to increase revenue.
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New Vehicle Sales
A great way to increase new vehicle sales is to use up-selling techniques. Up-selling additional services gives customers the option to purchase a product that complements the vehicle – such as tire and wheel protection. Catering to customer needs is simple but sometimes overlooked in the selling process.
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Accessories and Service
Accessories and service are important parts of a dealership’s business model. In 2021 alone, U.S. car dealerships make about 23.4 billion dollars on mechanical sales, and nearly 50% of all total revenue stems from parts and servicing departments. These statistics show that a core part of any dealership is its ability to service the vehicles sold.
Thus, it’s good for a dealership to ensure the servicing department can meet and exceed customers’ needs. Hiring technicians that are knowledgeable, efficient, and trained on repairing the newest technologies is important. Servicing reminders will return customers to the service drive and remind them that they can rely on their trusted dealership for their service needs. Improving service drive revenue, upselling repairs, parts, and accessories is essential for dealerships. -
Used Vehicle Sales
The same principles that dealers can apply to new vehicle sales can be applied to used vehicle sales. However, there are other factors to consider, such as trade-in values. Trade-in profitability is important, because there’s a huge difference between less-used or newer cars compared to older or more-used cars. Pay attention to optimizing to get the most value from trade-ins.
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Post-Sale Offerings
No matter what vehicles a dealership is selling, post-sale offerings are a great way to increase revenue without selling more vehicles. There are many types of post-sale offerings that you may want to focus on. These include vehicle service contracts.
Post-sale marketing vehicle service contracts to customers helps dealerships build lasting relationships with them and keep these customers from buying subpar third-party vehicle service contracts. Learning how to effectively market to these customers leads to better customer loyalty and other benefits such as increased revenue, higher reinsurance reserves, and more vehicle sales.
At APC, we offer post-sale vehicle service contract marketing programs at no cost to dealerships. These programs market to dealership customers and educate them about the benefits of buying additional coverage from the dealership.
We encourage dealers and agents to contact us to learn how Automotive Product Consultants can power a post-sale vehicle service contract marketing program that will drive sales and revenue for your dealership. Reach out to us today for a free program demo.
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Omnichannel Marketing for Dealerships
Customer Loyalty, Dealership, Direct Mail, MarketingIn the three years since the pandemic, businesses have learned to adapt to deliver positive customer experiences. Dealerships are no exception, having faced struggles related to closed showrooms and limited in-person interactions. Dealerships must learn to use omnichannel marketing to increase vehicle sales, generate F&I revenue, and grow customer loyalty and retention.