Quarter 2 has seen some dealers struggle to maintain earlier levels of performance with a corresponding spike in self registrations, and if they don’t act now, quarter 3 will start to become a problem.
With interest rates poised to rise this year, and recovering European markets sucking manufacturers’ marketing budgets away from the UK, it is clear that the market is likely to become tougher as the year progresses.
As we travel up and down the country we are hearing that in many cases enquiry levels are already down; and yet manufacturers are showing no signs of abating the pressure on targets, and you know how vital it is to keep hitting these targets from a contractual and cash flow point of view.
In addition to new car pressure, auction houses are reporting the need to hire additional space just to store the increased levels of unsold used cars – a sign that new car sales are good, but that we simply aren’t coping as an industry with the part exchanges. Worrying indeed!
Whilst some dealers will find maintaining profitability this year a problem, others will continue to perform. So what differentiates the two groups? In lots of cases it is because successful retailers remain focussed on the fundamentals when others lose the habit.
At this mid-year point ask yourself a question: are you letting the market control your business, or are you making the market for yourself? After two years of continuing new car market growth, some dealers have taken their eye off the ball because they haven’t had to focus on the basics for so long.
So if you are being told that car sales “enquiries are down,” are you still in the habit of checking the showroom log each day? More importantly; what are your Sales and Marketing Managers doing to generate enquiries from that growing database?
In aftersales, are the team demonstrating expertise and selling the value before presenting the price, and can your Workshop Controller and Service Manager demonstrate a close and accurate understanding of what’s happening around the VHC process?
We are so convinced that there’s at least a handful of actions that can be taken to increase sales and profitability in every business right now that our Managing Director Karl Davis, is offering a complimentary “Business Brainstorm” to the first five retailers that apply.
To book your appointment contact Ella Rolph on 01335 324325 or email@example.com. Appointments are allocated on a first come first served basis.