The automotive industry is in a precarious position. Despite there being inventory shortages due to supply chain challenges, many dealers are seeing an increase in sales and grosses as a direct result of this adversity. The automotive retail industry, while resilient, is forced into two camps of thought. The first says that staying disciplined to traditional practices will help drive success. The second states that we must adapt to our new surroundings and learn new methods for doing business. Is one school of thought better than the other? That depends on who you ask.
As it stands, there is still a divide between digital retail and the traditional brick-and-mortar. However, consumers desire a hybrid approach to shopping. A great lot can be done online. But there still remains a portion that customers want to do in person. We are seeing a further shift in confidence when it comes to the advancement of digital touchpoints. Technology streamlines car shopping more and more each day.
With this divide, however, comes a need to understand both points of view. Shortages on inventory are expected to last into next year. With that being said, dealers need to realize that they can adopt a two-pronged approach to thriving instead of simply surviving. Traditional methods of selling to consumers should largely stay the same, especially in light of some dealers converting sales at a quicker rate. Consumers understand that vehicles won’t remain on the lot for too long.
As a result, auto dealers need to transition some parts of their approach to sales. What used to take up a few hours is now being done in record time. Salespeople don’t have a moment to waste with negotiations. The customer is in control and they need a consultant to guide them through the sales process. In that regard, you need to shift from the traditional mindset to a technology-focused approach.
The modern shopper is rife with information before they head to your lot. They know details about individual vehicles and packages, are aware of trending news on inventory shortages, and have a sense of urgency when it comes to securing the vehicle they want. So, it’s up to automotive dealers to infuse different touchpoints into the process. There doesn’t have to be two entirely separate schools of thought when it comes to being successful at selling cars.
Do your best to bring in next-generation technologies that will help support your dealership. Empower and train your staff to be as knowledgeable (and as passionate) as the customer. As inventory continues to shrink, time is no longer on your side. Be proactive in how you advertise what inventory you do have. Build in a sense of trust and transparency, and be upfront about the true value of trade-ins. Appraise with confidence and acquire new inventory with each car you sell.
The automotive retail industry might be in a unique spot, but that doesn’t mean there isn’t room to thrive. Adopt that two-sided mindset and prepare for the future while catering to the now. MAX Digital can help you embrace success during turbulent times. Schedule your free consultation today and discover the ways technology can improve your discipline while also pivoting against existing situations.