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Jared Hamilton
From: Jared Hamilton
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Binary  Auto

Binary Auto

Exclusive Blog Posts

Is the Service Department Keeping Customer Data Secure?

Is the Service Department Keeping Customer Data Secure?

A quick visit to the dealership for an oil change isn’t exactly the riskiest behavior someone can engage in. The routine procedure should do noth…

Evolution of a Dealership's Fixed Operations with Dave Foy | KPI Cafe Season 6 Episode 1

Evolution of a Dealership's Fixed Operations with Dave Foy | KPI Cafe Season 6 Episode 1

To kick off our newest season that's all about your dealership's fixed operations, Host Dane Saville is joined by the Fixed Ops Mastermind Dave Foy…

WEBINAR RECORDING - Five Ways to Grow Your Profits in the Second Half of 2020

WEBINAR RECORDING - Five Ways to Grow Your Profits in the Second Half of 2020

Discover strategies to identify and capture additional profit on every car deal. After months of uncertainty, we are seeing dealerships open their do…

Rock’s Rants: Purchase Orders

Rock’s Rants: Purchase Orders

Does your dealership have a purchase order (PO) system? Often when I ask this question in dealerships the answer is, “Sort of.” When I dig deep…

Even Loyal Dealership Service Customers Buy Tires Elsewhere

Even Loyal Dealership Service Customers Buy Tires Elsewhere

It’s widely known that dealerships still have a lot of ground to make up when it comes to selling tires. According to Modern Tire Dealer, auto dealer…

The Number One Way to Recession-Proof Your Dealership

We have just lived through a wild week. From a dramatic fall on Wall Street bringing us to the brink of a bull market to several national, and worldwide, companies ordering their employees to work from home over fears of the Coronavirus to trouble over crude in the Middle East, many of us have been left reeling.

In this week alone I have fielded several calls from concerned partners and customers who have shared fears of an impending recession. Our discussions have run the gamut, but the overriding question continues to be, what do we do now?

My simple answer? Double down.

We are at a time in the automotive industry where customers will become even more discriminating with where they spend their dollars and it is more important than ever to differentiate yourself. While we all should be good stewards of ways to provide extra value when times are good, it is paramount to show value when times are uncertain.

A current estimate by market researchers at Adobe Analytics shows demand for hand sanitizer has gone up 1,400 percent from December to January. Take a lesson from hand sanitizer companies and jump in to show the value of your product now.

How do You Sell Value Over Price?

In retail automotive, no dealership has a unique advantage in new car franchise products, prices or financing. Dealers get the same cars from the manufacturer, pay the same amount to the factory to receive them, and have the same options to finance them for customers. Dealers also share the same resources to evaluate and price their pre-owned inventory, so, no real advantage there either.  Where is the advantage? In the offering of ancillary products to show your customers value over price.

For example, your store might offer attractive value-adds like free oil changes and car washes, a 72-hour exchange program or a lifetime power train warranty.

One of the best opportunities a dealership has to separate itself while ensuring a purchased vehicle’s reliability is through the warranties it offers. But what dealers offer and how aggressive they are in promoting it says a lot about their priorities.

Actively Promote Your Value Culture

The goal is to have the customer see that value is not just a bullet point in your sales conversation, but a viable part of the deal. For example, if you offer a lifetime warranty product, let them know the advantage of performing the maintenance at your dealership, but that they can get their vehicle maintained anywhere, and show them how to use a maintenance log. Remind them to keep good records and bring those records back to your store. Make it easy for them to schedule and receive service.

Don’t Forget Training!  


One important area not to be overlooked is training. Yes, you should absolutely be training for culture and ensuring your employees know that what you’re selling right now is value. And not just once. If you don’t train, and continue to train on your culture, whatever you expect will not be happening. Train on your culture as often as needed to ensure it weaves itself into the fabric of your staff’s daily activity.

Finally, Don’t Give In to a Fear-Based System

We have been here before, (anyone remember 2008?) and we have survived. We will come through these latest headlines, stronger, smarter and more valuable than ever to the customers we serve. If we keep value top of mind through all of the ups and downs, we can’t lose.

David Adcock is the Executive Vice President of Binary Automotive Solutions, a leading provider of customized programs designed to help dealerships sell more vehicles. He can be reached at David.Adcock@binaryauto.com.

Martins Ville

It's a time for dealers to adapt and think outside the box. This requires a Mastermind meeting with the owner, gm, sales managers, internet, BDC, service managers. Don't think about what you're not doing, but think about why what you're doing isn't working.

Martins Ville

Another step is transparent pricing. It's not a race to the bottom, it's about survival. If you have the easiest purchase process in the lowest price I guarantee you'll be the busiest dealership in town. Plenty of opportunity to upsell an f&I.

Binary  Auto

You are absolutely right, Martins. It really is a time to look across your processes, determine what is bringing the most value, innovate, reinvent and move forward with the "new" way of doing business. Thank you for the comments! 

 

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