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13/11/09 at 01:38pm GMT+1
Automotive News
Once again, it’s back to basics (US)
For a long time, new-car dealers spent most of their time trying to increase their market share or simply increase sales in their communities.
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Posted by: AIMTP

Today, that's not enough. With new-car sales a fraction of what they were a couple of years ago, dealers have to go back to the basics one more time. That means taking a look at all their profit centers and making sure that they are profit centers, not just service centers.

In just about every recession, and even in wartime when new cars were unavailable, dealers turned back to the basics. That's simply blocking and tackling.

For dealers, it means taking another look at the service department and making sure it's taking advantage of every opportunity to maximize revenue.

Wholesaling parts is something that most dealers don't bother doing. Just letting the phone ring is an easy way to take orders. Why not put a couple of trucks on the road and look for new business?

There are many ways for a new-car dealer to increase revenue. Most of them are a lot tougher than selling more cars. But when there aren't a lot of alternatives available, it's time to remember what your grandfather did during World War II when there weren't any cars.

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