At Automotive Product Consultants we always emphasize the power of increasing revenue beyond vehicle sales. There are many overlooked revenue opportunities in dealerships, but taking the time to realize them is a great way to transform the bottom line. These are four methods that owners and general managers of dealerships can use to increase revenue.
- New Vehicle Sales
A great way to improve profit on new vehicle sales is to use up-selling techniques. Up-selling additional services gives customers the option to purchase a product that complements what they are already purchasing – such as tire and wheel protection on a new vehicle. Catering to these customer needs is simple but sometimes overlooked in the selling process.
- Accessories and Service
While dealerships may be most known for selling cars, accessories and service are important parts of most dealerships’ business models. In 2021 alone, U.S. car dealerships make about 23.4 billion dollars on their mechanical sales, and nearly 50% of all total dealership revenue stems from parts and servicing departments. These statistics show that a core part of any dealership is its ability to service the vehicles they sell.
Thus, it’s good for a dealership to make sure their servicing department is running smoothly and can meet and exceed customers’ needs. Ensuring technicians are knowledgeable, efficient, and training on repairing the newest technologies is important, and servicing reminders will return customers to the dealership and remind them that they can rely on their trusted dealership for their service needs.
Improving revenue from the service drive, upselling repairs, parts, and accessories is essential for dealerships. A focus on upselling these accessories and services encourages customers to return to the dealership to make a purchase and will also let customers know the benefits of purchasing directly through the dealership.
- 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.
- Post-Sale Offerings
No matter what vehicles a dealership is selling, post-sale offerings are a great way to increase your revenue without having to sell more cars. 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 Automotive Product Consultants, 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.