Teaming up to tackle dealers’ problems
It’s no secret that car dealerships have huge difficulties that they face on a daily, monthly, and yearly basis. A recent This American Life piece showcased some of these difficulties. Dealers are stuck with low turnaround on their investment from automakers, and they’re saddled to non lucrative contracts, and they have to deal with the stress of the market itself, not to mention underperforming salespeople.
What’s one way to handle the problems these dealerships face? Teaming up to work together. Rather than compete with one another, it makes more sense for car dealerships in a particular demographic to work together to try to attract customers.
Such practices might include co-sales and bargain sharing. When it comes to moving inventory, car dealers can work with other area dealerships to ensure that, should a customer view a model at one dealership and receive an offer, that that offer will be honored, matched, or beaten by another area dealership. Such co-working will help dealerships to move inventory, keep the manufacturers happy, and provide sales to employees in need of commission.
An example of this principal working in action can be seen at the Fallon Automall in Fallon, Nevada. Chris Henning, an owner at Fallon Ford-Toyota, has said, “community is central to the value system at the dealership. Community trust and an unfailing dedication to its members have allowed FFT to grow and prosper over the years. Without the first-time and repeat business from Fallon and other local communities, it would have been awfully hard to expand and grow as we have.”