Tuesday, March 14, 2017

How To Deal: The Challenges Faced By Car Dealerships

Car sales are rising, and this has been the trend for the past decade. They are not, however, clear indications of peachy times ahead for the industry. The automotive industry, while reposing on growth, is a vast one. As such, it is bound to hit many snags in various channels.

Image source: BusinessInsider.com
Car dealerships, for instance, directly feel the brunt of fluctuating demand and changing consumer expectations. Their experience of the automotive industry is different from that of automotive manufacturers in that they’re the ones grappling with the variety and sheer volume of models and preferences. Indeed, brands and car manufacturers can insist on a single track when releasing models and innovations that integrate in-demand trends. Car dealerships must consolidate these choices in the segments in which they specialize. The larger ones, meanwhile, must expand their inventory to cater to diverse tastes.

Technological turnovers are also unrelenting. Car dealerships must equip themselves with knowledge of such, and effectively disseminate this to their sales forces. Car buyers nowadays rarely understand what goes on in engines and the other minutiae of car makes. They want to be told what they’re buying into, and in ways that can be demonstrated through a simple road test.

Image source: PopularMechanics.com
Online shopping is also forcing changes in the operations of car dealerships. Whereas before the car-buying experience tended to be an interrogatory, loitering affair in showrooms, nowadays, potential buyers turn to Google for research and save the walk-in for the actual buying. This leaves little room for sales representatives to make convincing pitches. On the other hand, they can use the online shopping trend to leverage their offerings.

Jeff Lupient is the president of the Minnesota-based Lupient Automotive Group and a reputable name in the sales industry. For more reads on the automotive industry, visit this blog.