Are you concerned about managing inventory levels?
How that could impact your spending in the next month?
Here are my key takeaways from listening to Kevin Frye from Jeff Wyler Automotive this morning:
#1 Match spending to consumer sentiment
When the $1,200 pandemic relief checks came out, they marketed to their customers. Look at the competition - if there is lack of inventory, it can be possible for you to sell the vehicle at a higher profit margin.
#2 Don’t underestimate the role of dealers in digital retailing
90% of people still want to come to the dealership and ask questions about the vehicle before they decide to buy it, even after completing most of the buying process online.
#3 Customers are paying premium for convenience
Jeff Wyler Group found 20% higher gross profit margin on digital retail transactions. 95% of them didn't try to negotiate on the price. This shows the potential for dealers to apply the “convenience premium” principle on existing sales process outside of pure digital retailing.
Are you seeing this happen at your store? Are there other things that a dealer could be doing right now? Please include your thoughts in the comments to continue this discussion.
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