Hint: It involves implementing a digital retailing strategy with messaging woven into it. And we’ve got a guide to help you make it work. SEE HOW
Anybody who has managed a business knows that it comes with a lot of unexpected expenses. But managing a dealership will be even more intimidating. If you want to cut costs in your dealership (and maybe gain some favor with the owner), there are a few things that you can do.
If you are selling new 2017 models, there is probably no reason for you to have the 2001 Pontiac Sunfire in your parking lot. If you have fifty old, used cars out there, they will probably cost more than their value. You should establish a 30-day rule for old cars before you put them up for auction or sell them at a discounted rate.
There might be a time that you should give somebody a chance, but do not make a habit of hiring under-qualified candidates. Firing people and then going through the hiring process again can take a while and will ultimately come with expenses. Make good decisions about who comes on your team. Another point to consider is that a good salesperson will actually be a financial asset to your company. Look for intelligence, passion, and credentials.
Also, on the topic of personnel, be careful about giving them too much over time. If it is possible, you should have a company-wide protocol regarding over time (like that management has to sign off on it).
Find a distributor who will give you a discount for buying in bulk. Also, you should try to emphasize that employees cannot take little office supplies home with them. People tend to innocently take a box of paperclips, a sticky note or an envelope. While that might not constitute theft or a serious crime against the company, that can add up and lead to a financial burden.
You probably know the importance of advertising. But you should also know that some of the old tactics are not as effective. Paid advertising might not bring in the business that it needs. Make a few minor investments across different advertising platforms and discern which yields the best Return On Investment (ROI). Also, you should really invest your time and resources into digital marketing. Start a blog and some social media accounts.
You probably know that dealerships are not required to have car insurance. But they do need to have liability insurance that includes the vehicles on the property. There are a few ways that you can save money on this expense. First, advertise your need for a broker. Brokers who are familiar with insurance agencies can usually get better car insurance quotes.
Beyond that, there are a few things that you can do to keep your insurance rates down. Insurance companies typically reward you if you conduct a background check on your employees. Also, you should remain on one test drive route, reducing the risk of a collision.
It might not be the most popular move, but it will save the company a lot of money. Customers who are credit risks have a history of failing to pay off their loans. So if you give her a loan or a payment plan, it could be costly. Perform a credit check.
Since people are different, some employees will perform better in certain conditions. For example, one employee might be an introvert and would do a better job working in a cubicle. That sort of minor adjustment should be accommodated. Also, you should try to encourage friendships between your employees. If they are going out to lunch together and developing a relationship, they will perform better together. This will increase your profits.
There are a lot of places that you could save money. Consider implementing some of these tips and you might see a higher yield.