Fighting Margin Compression | Dealers Compressed Episode TWO
Are you ready to fight? You should be. The advancements in the industry aren't slowing down and you'll only find yourself further behind. Do you know what your biggest challenge is? In this episode, we identify the 4 biggest challenges you'll face.
Subscribe on your favorite podcast platform:
Transcription
Dale offers four broad strokes to address what calls "critical assets" in this fight.
First, customers. Start giving them exactly what they want and stop forcing them to do business your way. Improving the experience will increase efficiency and improve your margins.
Second, inventory. This is vAuto 101. Don’t hold inventory that represents a poor investment. Aged vehicles are significant profit drainsand top performers do 50% better in this area.
People. Dealers have historically terrible turnover rates and to Dale, this not only borders an industry embarrassment, but also means huge profit losses. He dedicates the entirety of chapter six to this.
And finally, facilities. Dale addresses missing the mark on consumer relevance and the actual return on investment later in this book. In summary, margin compression is here to stay. The sell more to make more adage doesn’t work.
So find out where you are in adopting the new mentality and start moving toward the exits before you become that old car in the compactor. Which dealer are you? Which dealer will you choose to be?
Resources:
Dale Pollak’s ‘Like I See It’
Related Episodes:
This week feels good.
We are fortunate enough to be one of the first outlets in the country to cover a bomb-drop of an upcoming product release from vAuto. We have Dale Pollak as a guest talking about a big secret which is about to change the auto industry…again. There have been whispers in the industry regarding what is going on and my hope is that this interview brings some much needed CLARITY and expectation.
Many dealerships think that branding and changes in company culture are major projects that they just aren't comfortable tackling yet. This week, we cover something you can implement at your dealership right away: assessing your inventory for better turnover.
This week takes on a different feel than usual as I (Paul) a notable day at vAuto headquarters in Chicago with Founder and visionary, Dale Pollak. The truth is, every worthwhile event in life never happens in an instant. It is the result of process. This is true in business, parenting, personal development, etc.
Next week we will be releasing this exclusive interview with Dale where my opening question seeks some clarity on why Dale set aside time for…me???
Thank you for being a part of this community and I couldn’t be more energized to pursue CLARITY together!
Dale Pollak's interest in the success of the dealership model doesn't come from his business practices; it's something that's rooted in his very being.
Adapt or die. Which will you choose?
We've covered the major inefficiencies in the automotive industry, but for review, let's look at the highlights that NEED to be addressed.
Admittedly, the content of this episode isn't the most exciting thing to talk about. However, in a world of transparency, it's more imperative than ever to keep yourself educated to ensure you are able to best serve your customers working within these limits.
Many dealerships think that branding and changes in company culture are major projects that they just aren't comfortable tackling yet. This week, we cover something you can implement at your dealership right away: assessing your inventory for better turnover.
Amazon has changed consumer culture drastically. Customers can go online to find exactly what they want at the price they expect to pay. Has your dealerships moved to an online tool? Your customers want you to.
It might sound corny, but when employees are treated like a team and not like a number, you can FEEL the difference in the way they do business. Trust us.