Retailers Should Focus on More than Just Sales to Maximise Profit
- February 13, 2019
- Posted by: Alex Baker
- Category: Tips For Dealers
While the profit margin on a vehicle is important, it’s not the only way for your business to make money and there are plenty of simple tricks to maximise your earnings.
It’s no secret that video and social media for dealers can make a huge difference. This is often one of the first things a potential customer will see and if your videos are professionally edited and your content is appropriate they’ll feel more confident when they come to enquire. It’s no longer enough to advertise the cheapest car, having multiple photos, an accurate description and a comprehensive video can make all the difference for a prospective customer.
Buyers are becoming increasingly comfortable online, they’re happy to view a product on the screen, apply for finance there and then and purchase the car online without ever seeing it in the flesh. Ensuring your business is set up to take advantage of these new age buyers is crucial to remaining at the front of the digital age.
Only dealers realise the work that goes in between a vehicle being acquired and being put out for sale again. Cosmetic touch ups, valeting and servicing all take up time and that impacts the final profit on a vehicle. Obviously, each case is different, some may be relisted in a day, others may need timely restorations, but in each case, reducing the cost of this process is key to maximising profit.
External preparation companies may prove to be cost effective for larger dealerships, while reducing the free services offered with each sale may boost your profit margin while keeping customers happy.
Offering Other Services
Just selling cars or vans is often not enough to keep a business afloat. Offering other amenities such as MOTs or servicing can help to boost profits and help you bring your vehicle preparation completely inhouse. Many dealers also offer finance or warranties on their cars to increase add-on product penetration. Be careful not to become reliant on these profit channels however as the product providers can claim some or all of this money back if the buyer defaults on their payments!
Call 01782 454354, email email@example.com, or send a message via our contact page to speak to the market leaders in online transactional processing for vehicles.