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Dealership management does a lot of gymnastics to keep things running smoothly. 

Managing personalities and meshing departments is a big part of daily life in a car dealership. 

There’s the “every man for himself” culture in car dealerships, which is a pervasive problem. And, it’s always there, just below more pressing issues like a pandemic or a chip shortage. When will it all bubble up over the brim?

These issues are understandable and some stores have a better handle on it than others. Mostly, it comes down to a lack of communication. At times it can be easier to deflect when you have an angry customer standing in front of you. 

In a climate like the one we have today, departments are tempted to compete for profit rather than focusing on the dealership as a whole. Whether it’s a miscommunication, undelivered promises, or grappling for a piece of the pie, internal disunity is bad for business. 

Insignia Group has been working closely with dealerships since we were fortifying our bunkers for Y2K.

Since then we’ve seen the industry crisis of 2008, the Presidential bailout of the Big Three, the pandemic, and a chip crisis to name a few. 

Today, even the most seasoned parts managers are in danger of burnout.

Dealership parts backorders, a symptom of the ongoing inventory shortage, are creating more than profit loss. Interdepartmental tension, frustrated customers, and a stressed-out parts staff have only increased since 2020.

Some parts departments aren’t even getting an ETA for the parts and accessories they need. More loyal customers might be understanding, while most blame the dealership. 

For parts managers, an already difficult job has been exacerbated. Nobody wants to be sitting on their hands waiting on parts, yet that’s the very situation we find ourselves in today. 

What can management do to take hold of the dealership inventory problem and be a positive force?

According to industry experts, the inventory shortage will continue into 2024. 

Though predictions are what they are, dealerships across the country can agree that mass influxes of inventory are not on the horizon. 

E-commerce swallowed up traditional car buying out of necessity that later morphed into convenience. And today's buyers love convenience. So much so, in fact, that customer satisfaction with the buying experience reached an all-time high. 

Most dealerships got a handle on online sales just in time to face a new problem with inventory shortage. Today that issue is top of mind. 

Still, we’re an industry that adapts to changing needs and overcomes them! Dealers can meet the demand for online sales while combating shortages with car pre-sales. 

Not only that, pre-sales are a versatile tool that will also help salespeople learn how to sell cars when it’s slow. 

Parts managers and Service managers face the biggest challenges in increasing profit for services and monitoring the ROI of third-party resources. 

Today, fixed operations are faced with an even more urgent need to increase revenue, while inventory shortages result in unmet needs and plenty of backorders. 

How can a dealership create a successful parts department and a thriving service lane under the current conditions? The answer is simple yet complex.

Despite the pandemic, a chip shortage, and inflation, the car business didn't shut down…completely. Instead, customers took to the internet to buy their cars, and dealerships adapted to meet that need. 

Accessory catalogs are a dime a dozen. Complex accessory selling systems with reporting to prove R&I, incentive employees, and strategically boost sales are not. 

When your bottom line is a significant department focus, it's vital to have tools that give you a well-rounded picture of what you're selling. Insignia Group is that tool for selling accessories at a dealership. In addition, we have many different reports available that managers can use to monitor their teams and move products faster than ever before—including the report for parts and vehicle views.

You have the Insignia Group system, and you’re pretty sure you’re selling accessories to customers, so now what do you do?

Find out if it’s true! Our system is great for presenting accessories, tracking orders, creating new product bundles, adjusting pricing across the board, and making fixed operation jobs more effective. All those things are wonderful—until you discover that only half the teams that are supposed to be using it are actually using it.

Today, the automotive industry is in critical need of strong leadership. The nature of car buying continues to bend and reshape itself amid the ongoing challenges initiated in 2020. 

Though the term “Dealer Principal” can sometimes be used interchangeably with “General Manager,” this article is geared toward dealership owners. 

Exceptional customer service and high-integrity business practices start at the top of any owner’s priorities! To become a successful Dealer Principal, you’ve got to start with perfecting your own skillset as a leader, customer service manager, salesperson, parts expert, and service strategist. 

Here are three tips for setting yourself apart: