CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
I'll take the Reputation!
The more negative reviews a dealer has the worse their closing and conversion ratios resulting in an even higher the cost per sale which even further drives up the need for more profit than their competitors.
Some dealers will attempt to fix their sales issues by tossing more salespersons into the mix adding even more fuel to the fire. A highly charged and ‘get the sale at any cost’ mentality for survival will result in an increased amount of negative customer reviews as well as an increased lack of positive reviews. Lastly, this sales solution also creates a higher rate of turn over resulting in more “innocent” mistakes which result in yet even more negative reviews.
This cycle drives up positive reviews of competing dealers resulting in lower cost per sales for them, which results in more competitive pricing for them, which results in more sales for them, and additional volume incentive bonuses from the manufacturer for them, as well as more sales of F&I, Service, and Parts for them.
And that's not for you.
Just keep in mind that Reputation is not all that different than credit. You can live off credit for awhile and you can live off sacrificing your reputation for sales for awhile too. However, sooner or later every debt has to be paid back and the debt you accumulated against your reputation can't.