Big Headaches Facing Car Dealerships Today
Posted Date: 3/23/23
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WHAT WOES ARE CAR DEALERSHIPS FACING TODAY?
Since the Covid pandemic, a serious shift has occurred in the automotive sector that was and still is affecting car dealerships bottom line. Since 2020, a series of disasters required dealerships to think on your feet, adapt, or get left behind.
Of course, every dealership, and your customers for that matter, experienced all the headaches that trickled down from Covid like; lack of inventory, microchip woes, shipping problems, and overall higher costs for dealerships most valuable assets, their car inventory.
Today, Covid is going away (we think) but we are still facing new challenges like increased interest rates, a looming recession for the country’s economy, and 40-year high inflation numbers that are virtually keeping people in their current vehicles because of the higher costs, versus purchasing a new or used car.
Most all car dealerships took a hit over the last several years. In 2022, new light vehicle sales hovered at 13.75 million which was an 8 to 9% decline from 2021. Prior to covid, in 2019, new sales were around 17.1 million vehicles. That’s a 20% decline in sales over 3 years!
LET'S ADD ONE MORE HEADACHE TO THE LIST
Aside from all that’s going on, there’s an even bigger, more pressing concern to GM’s and Dealer Principals that we haven’t discussed yet, and it’s been an increasing concern for some time now, even before Covid. That subject is LABOR AND LABOR COSTS!
We know that labor is a huge cost to a dealership from both a time and money standpoint. If sales are down or demand is low, like it is today, it’s one of the first places that a dealer principal must look at overhauling or revamping to stay solvent.
Knowing that your dealership staff and team, from mechanics and sales to finance and management, are vital to your operation, Onsite Dealer Solutions (ODS) doesn’t suggest considering cutting these types of job roles at all as they are pivotal to your success.
HOW CAN ODS HELP OVERCOME THESE HEADACHES WITH YOU?
Of course, car dealerships and their sales staff are amazing at adapting to a cyclical industry and with the right team, your sales numbers can still soar in today’s market, when done right.
But it’s not just having a resourceful, valuable team that solves the problems described above. Dealerships today must come to terms with their overall operation and determine if there are ways to cut costs but still stay operationally sound.
One suggestion that ODS considers important to investigate, regarding labor costs, is your fixed operations staff, more specifically your make ready department. We know it takes a considerable amount of time, energy, money, and effort to find, hire, train, and keep good staff that get your cars ready for sale.
This is where Onsite Dealer Solutions provides a valuable labor solution to help offset the pain that comes from managing, insuring, and paying for these types of employees. See the real costs of hiring your own B-Service technicians here.
ODS offers the following Custom Dealer Labor Solutions:
Aside from all that’s going on, there’s an even bigger, more pressing concern to GM’s and Dealer Principals that we haven’t discussed yet, and it’s been an increasing concern for some time now, even before Covid. That subject is LABOR AND LABOR COSTS!
We know that labor is a huge cost to a dealership from both a time and money standpoint. If sales are down or demand is low, like it is today, it’s one of the first places that a dealer principal must look at overhauling or revamping to stay solvent.
Knowing that your dealership staff and team, from mechanics and sales to finance and management, are vital to your operation, Onsite Dealer Solutions (ODS) doesn’t suggest considering cutting these types of job roles at all as they are pivotal to your success.
HOW CAN ODS HELP OVERCOME THESE HEADACHES WITH YOU?
Of course, car dealerships and their sales staff are amazing at adapting to a cyclical industry and with the right team, your sales numbers can still soar in today’s market, when done right.
But it’s not just having a resourceful, valuable team that solves the problems described above. Dealerships today must come to terms with their overall operation and determine if there are ways to cut costs but still stay operationally sound.
One suggestion that ODS considers important to investigate, regarding labor costs, is your fixed operations staff, more specifically your make ready department. We know it takes a considerable amount of time, energy, money, and effort to find, hire, train, and keep good staff that get your cars ready for sale.
This is where Onsite Dealer Solutions provides a valuable labor solution to help offset the pain that comes from managing, insuring, and paying for these types of employees. See the real costs of hiring your own B-Service technicians here.
ODS offers the following Custom Dealer Labor Solutions:
- Dealership Greeters
- Lot Porters
- Service Drive and Valet Assistants
- Car Wash Attendants
- Master Car Detailing Experts
- Dent Removal and Repair Aces
- Windshield Repair Specialists
- Inventory Photographers
- Wheel Repair Technicians
- Headlight Repair Professionals
- Paint Specialists
ODS currently works in 11 states across America and services over 165 dealerships in the United States. With a goal of decreasing labor expenses as well as increasing inventory turn times and speed to market, we understand the dilemma facing dealerships today.
Our team works with your team OnSite! ODS employees are hired, insured, paid, and uniformed by us. By keeping your Fixed Operations Manager focused on technicians, repair orders, and the service floor, not the make ready department, we help save you from considerable staffing and time commitment headaches. ODS teams come to you complete with qualified and vetted staff that includes an Area Director, and Detail Department Site Managers, both of which handle this aspect for you.
ODS encourages you to take advantage of our FREE LABOR ANALYSIS to see how much we can save a dealership in labor costs. Explore our team, our story, and our gallery to learn more about us.
Yes, today’s automotive market comes with challenges. If there is a way to save your team time, energy, and money in this ever-changing environment, it can’t hurt to explore how. If you’d like to talk with ODS, you can reach us at 913-912-7384 or feel free to message our team here.