CentralBDC’s Post

2023 NADA Data Report: A Wake-Up Call for Dealership Engagement Strategies The National Automobile Dealers Association (NADA) recently released its 2023 Data report, and it paints a fascinating picture of the current automotive retail landscape. While there are positive signs – dealerships sold a significant number of vehicles (over 15.5 million!) – there are also trends that suggest a reevaluation of engagement strategies. Key Takeaways: Inventory Glut: Compared to 2022, dealerships are holding onto more vehicles. This can be attributed to factors like increased vehicle production and potentially softening demand. Incentive Frenzy: OEM incentives are up a staggering 110% year-over-year. This suggests manufacturers are trying to stimulate sales in a market with rising inventory. Days Supply Dilemma: The average days' supply of vehicles on dealer lots (44 days) is well above the new "normal" established post-2020. This indicates that dealerships might be carrying more inventory than they can quickly sell, which affects the floorplan for many. Marketing Jump: Dealership advertising spend is averaging over half a million dollars annually, with a focus on SEO and SEM (Search Engine Optimization and Search Engine Marketing). Third-party leads are another significant investment. So, the question remains – are dealerships getting the most out of their advertising dollars? With higher inventory, increased incentives, and a potentially softening market, it's crucial to convert every lead that comes through the door. The data in this research highlights a potential blind spot: Are all these leads being responded to quickly and professionally? In today's competitive environment, consumers expect a fast and consistent customer experience. As a dealer, you have two choices: Engage every lead in-house, or look to a trusted partner to help. Managing your own engagement team has his benefits: they are onsite and they can see the inventory. The negatives are ones that are very familiar with dealers: high cost of employees, benefits, training, time-off, call-outs, and turnover. And with the high rate of churn in BDCs specifically, it compounds the cost. Many have turned to off-site engagement teams to help with this solution, often costing less than the salary of one agent. But not all are the same. Make sure to look for a comprehensive suite of solutions that ensure every customer interaction, across online leads, websites, chat, texts, and phone calls, receives a prompt and professional response. Also, AI alone is not a great experience for your customers. Find a company that has a blend of live agents and AI ensures that 24/7/365 coverage, with a consistent brand voice that builds trust and strengthens customer relationships. Don't let your marketing dollars go to waste. Let Better Car People help you turn leads into loyal customers. https://lnkd.in/eqmShBZm

Why We Do What We Do: Easing the Burden for Used Car Dealers In today's fast-paced and ever-evolving motor industry, being a used car dealer has become increasingly challenging. It's not just about selling cars—dealerships must juggle multiple tasks to ensure smooth operations. From prepping vehicles and making sure they’re washed and photographed properly, to managing multiple advertising platforms like Autotrader, Car Gurus, and others, the daily grind can be overwhelming. Add to this the rising aftersales issues such as customer complaints and finance houses imposing their own rules, and it’s clear that running a dealership requires more than just sales skills. We understand the pressures you face, and that’s why we’ve developed a solution that is designed to help you succeed. Here at Motor Consultancy, we've created a product specifically tailored for used car dealers, unlike anything else on the market. Our service doesn’t just complement your existing team—it integrates fully with your internal and external staff, all while focusing on the core operation of your business: serving your customers and keeping your dealership running smoothly. As the motor industry grows, so do the challenges. Finance houses are becoming more demanding, often going beyond the expectations set by the Consumer Rights Act 2015, and the influx of aftersales complaints can quickly overwhelm even the most organised dealer. These issues not only create stress but can also damage your reputation if not handled correctly. That’s where we come in. Our product is designed to alleviate the aftersales pressures that can bog down your dealership. We handle everything from legal disputes to customer complaints, as well as aftersales calls and emails, so you can focus on what you do best—selling cars and growing your business. By providing expert support in these areas, we help protect your dealership’s reputation, enhance customer satisfaction, and ensure that you remain compliant with industry standards and regulations. At Motor Consultancy, our mission is simple: to streamline your dealership’s operations, allowing you to focus on sales and customer service, while we take care of the aftersales and legal issues. Let us be the partner that helps you thrive in an increasingly complex industry. With us being a fairly new company any shares would be greatly appreciated! So far we remain a five star reputation!

NO Discount * Mauritz Rheeder In the automotive industry, especially when launching a new vehicle, maintaining consistent pricing across the dealer network is crucial. Discounting a newly launched motor vehicle can have far-reaching consequences that impact not only the profitability of individual dealerships but also the reputation of the brand as a whole. First and foremost, offering discounts on a new vehicle can create the perception that the product is overpriced or lacks value. This perception can lead to negative media coverage and unfavorable write-ups, which in turn affect public opinion. When potential customers read reviews that question the pricing or value of a vehicle, it diminishes the excitement and demand for the launch, ultimately reducing overall sales. Inconsistent pricing across dealerships also leads to customer frustration. When a buyer sees different prices for the same vehicle at different locations, it undermines trust in the dealership network and the brand. In contrast, when all dealers stand united in their pricing, it signals confidence in the vehicle’s value and quality, ensuring a more seamless and professional customer experience. Furthermore, maintaining price integrity across the network protects the residual value of the vehicle, which is critical for maintaining customer satisfaction and encouraging future sales. When a new vehicle is discounted, it can reduce the trade-in value later, leaving customers feeling shortchanged. To safeguard the success of a new vehicle launch, dealers must resist the urge to discount. By working together and maintaining uniform pricing, the entire dealer network helps ensure strong sales, positive press, and a solid reputation for both the product and the brand. In addition to protecting the brand's reputation, it’s important to recognize that discounting undermines the true value of the motor vehicle. This particular model is superior to competitors, offering more benefits and unique add-ons that set it apart from anything else on the market. With its cutting-edge technology, advanced safety features, and enhanced performance, this vehicle offers a driving experience that cannot be matched by other cars in its class. Customers are paying for more than just a car—they are investing in an elevated experience, making discounting unnecessary and detrimental to the vehicle's prestige. When dealers offer discounts on a product of this caliber, it diminishes the perception of exclusivity and premium quality. A vehicle that is "one of a kind" or "one in a class" should command its full value, as its features justify the price. There’s no reason to discount a vehicle that is already leagues ahead of its competition, offering a better return on investment for customers. By maintaining the original price, dealers affirm #sales #product #player #network #no1 #superior #discount #price

📣 Dealerships!!! More Exciting News. I know TLDR- but this is a must read. We have a brand new program that we are offering super low introductory pricing on… So new and still evolving that we don’t even have a one sheet yet. This product will be going through various stages of development in the coming months and with each phase of completion there will be price increases. That being said, early adopters will be grandfathered in with guaranteed price lock.      Here are the bullet points:   ·        The industry’s FIRST Automated “Direct From Customer” Acquisition Platform o   Acquire more vehicles faster, AUTOMATICALLY, and more profitably o   Acquire the RIGHT vehicles from the RIGHT customers o   Generate MORE quality website traffic and 1st Party Leads (Google Juice!) ·        How we do it: o   We take any and all incoming internet leads (of which 60-70% want to Sell/Trade) and: § Identify EVERY VEHICLE registered to them § Update CRM with all Vehicle Ownership Information Automatically in seconds § Automate Marketing with offers to purchase all vehicles owned registered with attractive acquisition pricing ·        (90 day cycle with updated values every time) o   We Don’t Just Follow the Customer – We Follow the Car(s) and grow your database! § When/If the registered Owner sells any of their vehicles in most cases we’ll identify the new registered owner and: ·        Automatically begin marketing to them with regards to acquiring every vehicle registered to them ·        This creates spider web effect for exponential growth o   This pairs wonderfully with our conversion tool that guarantees a 30% lift in Opt-In leads from your existing website traffic to give us even more oppotunities § Let me know if you would like to learn more about that!   For a limited time, pricing is $450 One Time Integration Fee and $899/month (90 day initial term w/ 30 day opt out). I can guarantee this price and lock it in at this rate if you sign up by 5/17/24.   As I mentioned, we will be adding a lot of other features to this platform in phases over the next couple of months. It’s going to get even better/stronger. Right now, the projected price increases are:   5/20/24 -  One Time Integration Fee - $450 and $2000/month   6/20/24 -  One Time Integration Fee - $800 and $3500/month   Please let me know if you: ·        Have any questions ·        Would like to schedule a demo ·        Or just want to get this rolling   The timeline to get the best value on this is tight! We have a very brief window of opportunity to get the introductory pricing locked in… #dealershipmarketing #sellmorecars #marketingautomation #marketpointauto

Should I Use KPIs For My Used Motor Vehicle Dealership? Key Performance Indicators (KPIs) are quickly & easily calculated measurable target that indicates how your business is performing, in terms of meeting goals & hitting targets. Using them in your dealership can provide crucial insights into all aspects of the business, to help you monitor overall performance, identify areas for improvement & make better informed decisions. Here are some KPIs that you could use: Stock Turnover Ratio This KPI measures how quickly you sell your stock vehicles. It's calculated by dividing the cost of goods sold by the average inventory value. A high turnover ratio indicates efficient inventory management & sales performance. Average Days in Stock This metric shows the average number of days it takes for a vehicle to be sold after acquisition. A lower number is better, as it signifies faster inventory turnover and reduced holding costs. Sales Conversion Rate This KPI measures the percentage of leads or inquiries that result in actual sales. It helps assess the effectiveness of sales efforts and marketing campaigns. Gross Profit Margin Calculated by dividing gross profit (sales minus cost of goods sold) by total sales, this KPI indicates the profitability of each sale. Monitoring gross margins helps you in pricing strategies & cost control. Average Selling Price This KPI tracks the average price at which used vans are sold. It provides insights into market demand, pricing competitiveness, and overall revenue generation. Customer Satisfaction Score (CSAT) Measured through customer feedback surveys, CSAT indicates how satisfied customers are with their purchase experience. High CSAT scores correlate with customer loyalty and repeat business. Service & Maintenance Costs Tracking the costs associated with preparing used vans for sale, including inspections, repairs, and detailing, helps in maintaining profitability and setting appropriate selling prices. Employee Productivity Metrics such as sales per employee or vehicles sold per salesperson can highlight individual & team performance within the dealership. Website & Digital Marketing Metrics If you focus on online sales, metrics like website traffic, conversion rates from online inquiries to sales & digital advertising ROI are critical. Profitability by Vehicle Type or Model Analysing profitability by different types or models of vehicles can reveal which vehicles contribute most to your bottom line, guiding stock & procurement decisions. By monitoring these KPIs regularly, you can improve sales performance, optimise operations, enhance customer satisfaction, so ultimately increase profits. You might want to use different metrics for your specific business goals & market conditions, but those above are a good place to start. For help, PM or email me on Josef@MrBlueski.co.uk

What Is a Good Car & Van Stock Turnover Ratio? A good dealership stock turnover ratio can depend on specific circumstances, including its size, location, market conditions & the types of vehicles it sells. However, these industry benchmarks can be a useful guide. What Is the Stock Turnover Ratio? It is how many times a dealership's stock of vehicles is sold & replaced over a specific period, usually a year, it is calculated using the following formula: Turnover Ratio = Cost of Goods Sold (COGS) / Average Total Stock Value Industry Benchmarks For both car & van dealerships, a typical inventory turnover ratio ranges between 8 to 12 a year or selling & replenishing your entire stock every 30 to 45 days. What is considered a "good" turnover ratio? This depends on a few factors, typically: Type of Units Sold High-demand vehicles or popular models, have a higher turnover ratio as they sell quickly. Niche or specialized car & vans have a lower turnover ratio due to slower sales but may be more profitable. Market Conditions A strong economy with high demand for vehicles can drive up turnover ratios, but economic downturns or market saturation lead to lower turnover ratios. Efficient stock Management Aligning procurement closely with sales patterns helps in achieving higher turnover ratios & holding excess stock lowers the ratio & ties up cash unnecessarily. Size & Scale of the Dealership Larger dealerships with broader stock might have slightly lower turnover ratios than smaller specialist ones, who can react more quickly to changes in demand. Targeting an Optimal Turnover Ratio You should be aiming for a turnover ratio within the 8 to 12 range, higher turnover ratios suggest: Efficient Sales: The dealership is selling units quickly, minimising the time they stay in stock. Effective Inventory Management: Not overstocking, which helps in reducing holding costs & freeing up cash for other uses. Strong Market Position: You’re meeting market demand, which is a sign of good sales practices & customer demand alignment. How to Improve Strategies that can help: Enhanced Marketing Efforts: Targeted marketing campaigns to boost sales of specific models can help increase turnover. Optimising Stock: Regularly reviewing sales data to adjust the mix based on what is selling to avoid holding slow-moving units. Flexible Pricing Strategies: Promotions or adjusting prices to move stock more quickly. Efficient Supply Chain Management: Strengthening relationships with suppliers to ensure a steady flow of high-demand vehicles. Customer Engagement: Building strong relationships with fleet buyers & commercial customers can help you get repeat business can speed up stock turnover. Conclusion A turnover ratio within the range of 8 to 12 a year, is 2/3rds to 1 a month is solid benchmark. Regularly monitoring this number & reacting to changes in the market will help you maintain optimal stock levels & sales activity. For help, PM me.

🚗 Looking for the Best Nissan Dealership in Your Area? 🌍 Choosing the right dealership is crucial when it comes to finding your dream Nissan. Here are some tips to help you make the right choice: 🔍 Research and Reviews: Do your homework! Look for customer reviews, ratings, and testimonials online. This will give you valuable insights into the dealership's reputation and customer satisfaction levels. 📍 Location and Accessibility: Consider the dealership's location and how easily you can get there. Opting for a conveniently located dealership can save you time and effort in the long run. 🚙 Inventory and Selection: Make sure the dealership offers a wide range of Nissan models and trims. This will give you more options to choose from, ensuring you find the perfect vehicle that suits your needs and preferences. 💼 Service and Support: A reputable dealership should provide excellent customer service and after-sales support. Look for a dealership that offers maintenance services, warranty options, and a reliable service center. 💰 Pricing and Financing: Compare prices and financing options from different dealerships to ensure you're getting the best deal. Look for transparent pricing and consider factors like incentives, discounts, and financing terms. By following these tips, you'll be well on your way to finding the best Nissan dealership in your area. Happy car shopping! 🌟

Automobile Dealership Operations Simplified - Chapter 1 Automobile Dealership understanding PROs and CONs Operating an automobile dealership involves various aspects, and like any business, it has both advantages and disadvantages. Here are some pros and cons of automobile dealership operations: Pros: Profit Potential: Successful dealerships can generate significant profits, especially through the sale of new and used vehicles, spareparts, service of vehicle as well as additional services like financing, insurance, accessories and leasing. Job Creation: Automobile dealerships create job opportunities, not only in sales but also in service departments, but across average dealership employees 300 employees. Economic Impact: Dealerships contribute to the local economy by paying taxes, supporting local businesses, and stimulating economic activity. Diversified Revenue Streams: Besides selling vehicles, dealerships can earn income through service and allied services, providing multiple revenue streams. Brand Recognition: Being associated with well-known automobile brands can enhance the dealership's reputation and attract customers. Customer Relationships: Dealerships can build strong relationships with customers through personalized service, loyalty programs, fostering repeat business. "Customer For Life". Cons: High Overhead Costs: Operating an automobile dealership involves significant overhead costs, including property, inventory, finance cost, staff salaries, and maintenance, which can cut into profits. Market Fluctuations: The automobile industry is susceptible to economic downturns, changing consumer preferences, and fluctuations in fuel prices, taxes which can impact sales and profitability. Regulatory Challenges: Dealerships must comply with numerous regulations, including licensing, environmental standards, safety requirements, and consumer protection laws, which can be time-consuming and costly to navigate. Inventory Management: Managing a large inventory of vehicles can be challenging, especially when models become outdated or demand shifts. Dependence on Manufacturers: Dealerships are often dependent on manufacturers for the supply of vehicles, and disputes or changes in manufacturer policies can impact the dealership's operations. Competition: The automotive industry is highly competitive, with dealerships eying for customers in a saturated market. This competition can lead to price wars and reduce profit margins. Technology Investment: Staying current with technological advancements, such as digital marketing, online sales platforms, and customer relationship management systems, requires ongoing investment. In summary, while automobile dealership operations offer opportunities for profitability and community impact, they also come with challenges related to market dynamics, regulations, and overhead costs. Success in the industry often requires strategic planning, adaptability, and a focus on customer satisfaction. Jitendra Mali

Continuing from last week's discussion: Conversions: Defining Excellence and Making Informed Choices What distinguishes a good all round package conversion, and how can you determine all the factors? Is there a rivalry between Price and Quality? Can lead times influence decision-making? What about the importance of aftersales and how it can impact you? In the world of chassis and van conversions, these question weigh heavily on the minds of fleet managers and their decision making when selecting a new vehicle or a new fleet of vehicles. Undoubtedly, cost often takes precedence in today's market. But is opting for the cheapest always the right move? Consider the following example: Company A offers a basic single cab tipper conversion for £3700.00+VAT, while Company B presents a more quality-driven option for £4500.00+VAT. At first glance, logic dictates selecting Company A due to its lower price. However, upon closer examination, is this the correct choice in the long term? Suppose, within this scenario, your vehicle experiences an engine failure. Fortunately, your local dealership has a chassis cab available. unfortunately, work cannot stop which leads to the hire of a tipper for £180.00 per week. Company A's backlog means an 8-week wait, while Company B can complete the conversion within 4 weeks. A 4-week lead time difference at £180.00 per week equalling to £720.00, resulting in the difference now only being £80.00 between the two options. Now, let's delve into aftersales: Company A employs a "handbuilt" approach, requiring precise measurements and specialized skills with tools to build it from scratch Company B utilizes "off-the-shelf" components. On the surface, Company A's handcrafted method might seem better, promising handbuilt quality. However, in practice, it's a different story. Consider a scenario where a sideboard sustains damage in a collision. With Company A, obtaining a replacement requires the user to measure the damaged part, waiting for delivery (potentially 3-4 days), and dealing with potential measurement errors, resulting in further delays and potential rehiring costs. In contrast, Company B can provide next-day delivery of replacement parts, minimising downtime and eliminating the need for additional vehicle hires. In this case, which option proves superior? Additionally, consider aftersales warranties: Are they aligned with the chassis cab? Are they on-site or back-to-base? Which solution would work better? These hidden factors should significantly influence the decision-making process in buying a conversion. If you would like more information on the above or are interested in learning more please feel free to drop me a DM!

Given how profitable the service department can be for a dealership, you’d think everyone would have their services and prices nailed down on their website. Well, you’d be wrong. In this video we’ll highlight some bad examples of service offers pages and then how some dealers get it right, and we’ll obscure the dealership name of the bad ones. Given that 60-70% of dealership website traffic is mobile, we’ll focus on mobile. In the first example in the video, the first offer you see is for $10 off any BPROAUTO Part…what the heck is that, why are you leading with that as the most important offer, why do I have to visit the dealership for all the details instead of just getting them on the site, and what’s all that pink John Smith text about? In the second example, I’m not sure if this is better or worse than the original, but the service offers page has no service offers, and the appointment scheduler doesn’t work on mobile. There’s also another service offers page on a dealership site with no service offers. Yikes. Things are starting to get better in the fourth example, as we see that the service offers are listed, but they’re just giant black boxes with little visual appeal and the website chat is blocking the view. I don’t want to chat now, I want to see your service offers. Things continue to improve with this example, showing what a basic coupon builder looks like on your website. The dealer does a good job of listing the most common service items first, but it’s designed for desktop, not mobile. The ability to print a coupon is a miss because people also don’t have access to a printer from their phone. The last example from Feldman Chevrolet of Lansing gets it right. Notice how visually appealing the page is on mobile. As a user I can navigate quickly to exactly what I want to do. As I browse the service specials, the most common and popular offers scroll through, I can quickly schedule it, save it to my phone’s wallet, or learn more about it. Even if you’ve got more service business than you can handle, you owe it to your customers to display your offers and what they cost on your site. Every other retail industry has figured this out, and it’s time for automotive to follow suit.