Best Tips For Auto Dealers: Increase Your Sales And Profit
Gone are the times when customers would fall for innovative marketing gimmicks
. Customers of today think several times before investing their money. So, when it comes to buying a car, customers would prefer to buy a cheap and reliable car from a trusted source. This has resulted in better opportunities for good car dealers. But a car dealership must offer competitive prices to increase their business.A knowledgeable car buyer of today will be more interested in an affordable as well as a reliable car. This implies that car dealerships will have to work really harder to get the attention of a potential buyer. They will need to keep their profit margins down to stay in the business. Nevertheless, there are many ways to sell a car close to the invoice price and yet make a profit.
1. Additional Money from Manufacturer on Selling Volume of Cars:
A car dealership can easily make good commission by selling a certain volume of cars from a particular manufacturer. Car manufacturers often offer additional money on such deals. This commission is often referred to as holdback or kickback money. So, a car dealership can sell a car at a low margin and earn their money by getting holdback commission.
2. Factory to Dealer Rebates:
Car manufacturers also offer another type of discount to car dealerships. This type of rebate is often called spiffs and it reduces the dealers cost to buy the vehicle from manufacturers. These techniques are used by car producers that want to expand in particular regions.
3. Income Through Vehicle Financing Schemes:
Increasing number of dealerships are earning money through car financing schemes. A car dealership may offer such a scheme independently or in collaboration with financing companies. In any case, the dealership can make profits on such deals.
4. Profit from Service Department:
A dealership may also make a lot of regular income by offering car service options to customers For instance, a car dealership can offer car service schemes to its customers and make a recurring income. Customers often prefer to get the car service done through authorized dealers and this can contribute to the income of the car dealership.
The alternative means of making profits on car sales make it easier for the car dealerships to offer competitive prices to customers and bring in a lot of business. Dealerships must use these ways to increase their business. When car dealerships manage to benefit from these tactics, their customer also benefit as a good side effect.
by: Chris Azused