Every automotive dealership’s goal is to sell as many vehicles as possible. Selling cars is what keeps a dealership in business, but unfortunately, it’s only one small part of running a successful automotive dealership.
Many tasks are involved in the operation of an automotive dealership, including calculating the value of vehicles, managing employees, tracking inventory, analyzing the competitive market, and building relationships with customers.
Managing all these tasks manually is time-consuming and a waste of your dealership’s resources. To maximize your efficiency—and sales—use these software tools to successfully run your automotive dealership:
Vehicle Pricing Software
Price is one of the most important factors that a customer considers when deciding which vehicle to buy and where to buy it from.
You must offer competitive pricing to win over potential customers, which means you need to be aware of pricing at other local dealerships. But you must also consider your bottom line when pricing vehicles. In other words, the key to pricing is choosing the price that allows you to beat your competition while also maximizing your profits.
Manually researching the pricing for each vehicle in your inventory would take far too much time, which is why it’s best to use a vehicle pricing software instead.
Enter basic information about each vehicle into this software to learn more about how it should be priced. The software can even provide you with real-time pricing information from other dealerships in your area. Use this data to make sure that your vehicles are competitively priced.
You can also rely on this software to accurately calculate the value of trade-in vehicles. It only takes a few minutes to pull up the price of a vehicle, so you won’t have to keep your customers waiting to find out how much their trade-in is worth.
Your pricing decisions will have a major impact on your dealership’s profitability. Make the right decisions for your dealership by using a vehicle pricing software.
Inventory Optimization Software
One of the secrets to running a successful business is having the right products on hand to meet customer demand. But figuring out what type of vehicles your target audience wants and when they want them is not easy. However, the right inventory optimization software tool can help.
There’s a big difference between inventory management and inventory optimization software. The former is a tool that keeps track of which vehicles are currently in your inventory. If a customer is looking for a black 2020 Toyota Corolla, for example, it would only take a few moments to find out whether this vehicle is available using inventory management software.
But inventory optimization software does this and much more. It also looks at your dealership’s sales history to identify patterns and trends.
This tool might provide you with data that shows that certain colors, styles, or models sell faster than others. You can use this information to guide your future buying decisions. For example, the next time you purchase vehicles for your dealership, you may want to buy additional units of the colors, styles, and models that sell faster. This way, you can increase your sales simply by meeting the growing demand for these specific vehicles.
The bottom line is inventory optimization software not only keeps track of your supply, but also makes sure that it meets the local demand.
Automotive Auction Software
Automotive dealers may get their inventory from several different sources, including private sellers, trade-ins, and rental car companies. But automotive auctions are one of the main sources of inventory for these dealerships.
This usually means that inventory at used car dealerships is limited to whatever is available at local automotive auctions. But dealers can expand their search for the perfect vehicles to add to their inventory by investing in automotive auction software.
This software gives you access to countless different automotive auctions taking place around the country. You won’t have to waste time or money on traveling to attend these auctions in person. You can use the software to participate in each auction without ever stepping foot outside of your dealership.
If you find a vehicle that’s perfect for your dealership, use the built-in bidding functionality to place a bid. Bidding on vehicles through the software is not only convenient, but it can also help you avoid auction fees and other add-on charges that drive up the price of each vehicle.
Used car dealers aren’t the only ones who can benefit from using automotive auction software. Vintage car dealers can also use this software to scour local and national auctions to find rare vehicles to add to their inventory.
Customer Relationship Management Software
Every business can benefit from the use of customer relationship management, or CRM, software. This software is used for many different purposes, including:
- Keeping track of customer interactions
- Storing customer data
- Generating contracts
- Tracking new leads
- Providing customer support
- Automating the sales process
- Supporting relationships with vendors and other third parties
- Facilitating communication between members of the sales team
- Training new hires
To put it simply, this tool is used to manage all your dealership’s sales efforts and relationships with current customers, potential customers, and other parties.
Many automotive dealerships use CRM software to convert new leads to loyal customers.
For example, say your dealership receives a new lead generated by your digital marketing campaign. The CRM software will alert your sales team of this new lead so someone can reach out to them as soon as possible. The sales representative who contacts this lead can use the CRM software to record details of this interaction, which will be visible to everyone on the team. The sales representative may enter details about the type of vehicle the customer is looking for and their budget, for instance.
Then, the new lead visits your dealership several days later and works with another member of your sales team. This sales representative can use the CRM software to learn more about this customer and what type of vehicle they are interested in purchasing. This will make it easier for the sales representative to provide excellent customer service and close the deal.
This is just one example of how CRM software can help your sales team work together to sell more vehicles.
All-In-One Dealer Software
Dealer management software, or DMS, is considered an all-in-one tool for automotive dealerships. This type of software can handle many standard business tasks for automotive dealerships, including:
- Inventory management
- Contract preparation
- Cost calculation
- Repair and service management
- Sales management
You can use the same tool to perform all of these business tasks, which makes managing your dealership much easier. You won’t have to learn how to use multiple tools or switch back and forth between programs while running your dealership.
If you are considering purchasing DMS for your dealership, make sure you choose a tool that is user-friendly. Every department within your dealership—from accounting to sales—will need to use this software to perform their job duties. It must be easy for everyone to use to ensure it doesn’t make it harder for your employees to do their jobs.
The DMS you choose for your dealership should also offer cloud-based storage. This way, your data will be protected even if there is a service disruption or another issue with the software.
These software tools are valuable resources that can be used to improve efficiency, increase sales, and always keep your dealership running smoothly!