During the recession, many dealerships turned to service and repair aspects of their business to offset dwindling sales during the recession. Automotive sales have continued to rise over the past few months, perking up a long drought that had plagued the auto industry. Yet many dealerships are continuing to focus on fixed operations as a means to boost business.
“Parts and service carried us through the recession,” says Craig Monaghan, CEO of Asbury Automotive Group, a chain with 79 dealerships told Ward’s Auto. “The front end of the store is sexy, but we make our money in the back.”
The benefits of implementing this service-centric view are substantial. According to 2012 WardsAuto Megadealer 100, Asbury revenue last year included $190.6 million in service work and $335.4 million in parts and accessories. The goal is to bring customers back to the dealership repeatedly for service, rather than losing the business to independent shops and service centers.
Consequently, many dealerships are continuing to focus their dealerships on service and repair shops. New dealerships are built to prominently feature service lanes. Service providers are provided with computer tablets to use when interacting with customers and writing repairs orders. CRM software keeps track of when a customer needs an old change or tire rotation, and use focused marketing campaigns to remind them when it’s time to get their vehicle maintained.
As the latest automotive trend indicates, there is so much more to running an auto dealership than simply selling vehicles. From selling, repairs and maintenance, inspections, financing and insurance, and many other operational tasks, you provide your customers with many of the processes involved in getting and maintaining a car, truck, boat, RV, or other type of vehicle. Running so many operations under one roof also means you face a unique set of risks and exposures- this requires insurance protection specifically designed for dealerships. At Dealer Protection Group (DPG), that’s what we do. We are in the business of protecting your business, providing you with a broad array of Dealership Coverages for your business. Contact us today for more information.