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The turnover rate at dealerships has reached an unsustainable point. According to JMA Group, “the employee turnover rate in the automotive industry is 46%, an all-time high.” That staggering percentage is taking an overall snapshot of the dealership. When you examine individual departments, the situation is grimmer. As of 2019, pre-pandemic, annual turnover for service advisors came in at 49%, while yearly turnover for sales consultants was at 80%.

The parts department catches a lot of flack. 

Working in the parts department isn’t easy, and the relationship between parts and sales can be a harrowed one. Sometimes a great accessory sale upfront can fall apart in the back due to plain old poor communication. 

If you’re a parts manager, there’s good news for you. You don’t have to fight an uphill battle in 2022. A good parts business strategy can turn your department into an untouchable powerhouse. Intrigued? Read on to find out how. 

If you bring up low inventory at family Thanksgiving this year, you're canceled. 

"Let's talk about the chip shortage over cranberry stuffing," said no one ever. We don't have a lot of inventory, guys. So let's bedazzle what we do have and slide into 2022 with a bit of pep in our step. Yes, this year was supposed to be better than the treacherous pandemic year and didn't deliver. Through these rose-colored glasses, however, 2022 is looking pretty good. There are steps you can take today and into Q1 to turn survival into thriving next year. 

Is anyone else sick of being cynical? The doom and gloom surrounding the automotive culture are getting too heavy to lug around. As we creep into November, it’s clear that low inventory will continue into 2022, so we’ve got to find a way to make lemonade. While OEM’s and the media are projecting a pessimistic outlook as the world tries to rebound, low inventory can bring opportunities you may not have considered. As we wait for something to change that’s out of our control, let’s make the most of this time. 

Managing a department with an 80% annual turnover rate isn’t for the faint of heart. Add in an inventory shortage, social distancing, and a sharp increase in digital retailing; and, it’s enough to make somebody crazy. The good news is, sales managers don’t have to go on a yoga retreat to escape the chaos. There are manageable steps to make the sales department better and keep your General Manager happy. Avoid these common pitfalls to get out of survival mode as we skate into 2022. 

Whether you’re Papa’s Car Lot sitting on 1 acre or a corporate mega-store spanning multiple lots, you can boost your bottom line with accessory sales. It’s that simple. Accessories are a multi-billion dollar industry, largely unaffected by the pandemic. Selling them at the point of sale is a proven method of increasing PNVR. The caveat is this: dealerships who pitch accessories chaotically will stumble into success on occasion and overall miss the mark. A successful accessory program requires a process catered to your store. The good news—dealerships are quite accustomed to a process. While the exact flow will vary from store to store, many best practice fundamentals remain the same.

The rapid adoption of automotive digital retailing kept the doors open for many stores in 2020. Raking in over $230 billion, experts predict explosive growth in digital retailing throughout the decade. Today, it's more important than ever to outfit your website with advanced digital retailing capabilities to cater to the masses online. Digital retailing is more than pictures of a car and a contact form; it's the ability to buy a car from start to finish online. Dealerships are no longer able to avoid digital retailing if they want to compete in the market. As the industry adapts, dealerships can avoid common mistakes that will affect their DR sales.

Being a successful parts manager requires constant pivoting. Selling, pricing, receiving, inventory management, and ordering are all in a day's work. Throw in a pandemic with a chip shortage, and it's a whole new world. 

Over half of customers (approximately 62%) stop doing business with a company because of bad customer service.

Used cars are having an influencer moment. In incredibly high demand, boasting lofty price tags they once only dreamt of, used cars are center stage in the automotive industry. Gone, at least temporarily, is the stigma of used vehicles being old clunkers. The used car stereotype has been replaced by an image of a shiny 2017 model, being fought over by prospective buyers. In 2021, used car buyers aren't always strapped for cash, looking for a bottom dollar deal, or someone hardly interested in aesthetics. Used car buyers are everywhere you turn, and the profit potential is limitless. By adding protection accessories to your used car lineup, you'll increase the car's longevity and create a satisfied customer—who will soon forget they were ever after a 2022 model.