In the competitive world of independent auto dealerships, success often comes down to a combination of smart strategies, efficient operations, and strong financial management. At Kinetic Advantage, we’re always eager to learn from our dealer partners about what drives their success.
We recently reached out to some of our most thriving dealerships to gather their insights on what makes them stand out in the industry.
We recently reached out to some of our most thriving dealerships to gather their insights on what makes them stand out in the industry.
Here’s what we learned:
1. MASTER INVENTORY MANAGEMENT
One common thread among successful dealers is their ability to manage inventory effectively.
As one dealer put it, “Knowing what to stock and when to stock it is crucial. We constantly analyze market trends and our sales data to make informed purchasing decisions.”
Effective inventory management ties directly into smart floorplanning.
With a flexible floorplan from Kinetic Advantage, dealers can maintain a diverse inventory without tying up all their capital. This allows them to respond quickly to market demands and keep their lots fresh and appealing.
“We have a system in place to identify slow-moving vehicles early.
This allows us to take action, whether it’s adjusting pricing or increasing marketing efforts, before the vehicle becomes a drain on our resources.”
To learn more about calculating your dealership’s holding costs and overall profitability, view our recent article, Tackling the Economic Headwinds: What you need to know to set your business up for success
2. EMBRACE TECHNOLOGY
In today’s digital age, successful dealers are leveraging technology to streamline operations and enhance customer experience. “We’ve invested in a robust CRM system and a user-friendly website,” shared another dealer. “It’s helped us manage leads more effectively and reach customers who start their car-buying journey online.”
Additionally, successful dealers are investing heavily in online marketing. “We’ve seen great returns from our social media campaigns and targeted online ads,” one dealer told us. “It’s all about getting in front of potential customers where they spend their time.”
Many dealers again mentioned the importance of having a good inventory management system. Kinetic Advantage’s Kinetic 360 platform was often cited as a valuable tool, offering real-time insights into floored inventory and helping dealers make data-driven decisions.
3. PRIORITIZE CUSTOMER SERVICE
While this might seem obvious, the dealers we spoke to emphasized that exceptional customer service is still a key differentiator.
“In an industry often plagued by negative stereotypes, we focus on building trust and long-term relationships,” one dealer explained. “We’re not just selling cars; we’re creating customers for life.”
Many dealers emphasized the importance of their staff in driving success.
“We invest heavily in training and creating a positive work environment. Happy employees translate to happy customers.”
4. MANAGE CASH FLOW WISELY
Successful dealers understand the importance of maintaining healthy cash flow. Many pointed to their floorplan financing as a crucial tool in this regard.
“Using Kinetic Advantage for our floorplanning has been a game-changer,” a dealer told us. “It frees up our cash for other aspects of the business, like marketing and facility improvements.”
Building strong relationships with floorplan providers is important for thriving dealers. “Having a partner like Kinetic Advantage who understands our business and offers flexibility has been crucial to our growth,” a dealer shared. Many appreciated Kinetic’s approach of being more than just a lender, but a true partner in their success.
5. CONTINUOUS LEARNING AND ADAPTATION
The auto industry is ever-evolving, and successful dealers stay ahead by continuously educating themselves and adapting to changes.
“We make it a point to attend industry conferences, read trade publications, and network with other dealers,” one owner shared. “It helps us stay on top of trends and best practices.”
Many dealers don’t rely solely on vehicle sales. Some successful dealerships have expanded into service departments, parts sales, and even rental operations.
“Diversification and adaptation helps smooth out the ups and downs of the sales cycle.”
Remember, in the world of floorplan financing, the strongest foundations are built on trust, communication, and a shared commitment to success. By fostering these relationships, we can all work together to drive the industry forward and create lasting value for dealerships and consumers alike.
Let’s make a difference today and build a stronger future for independent auto sales, one relationship at a time.
Remember, in the world of floorplan financing, the strongest foundations are built on trust, communication, and a shared commitment to success. By fostering these relationships, we can all work together to drive the industry forward and create lasting value for dealerships and consumers alike.
Let’s make a difference today and build a stronger future for independent auto sales, one relationship at a time.
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