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Every year, dealerships across the nation leave hundreds of thousands of dollars on the table. 

Though 2020 brought hardship to the industry, 2021 brought record sales numbers that are only expected to rise this year. It's good news, but it's unstable at best. Nobody saw the pandemic coming, the chip shortage was unprecedented, and digital retailing fundamentally changed car buying. So what's a dealership to do? Take hold of what's historically unchanging and sweep up that $460,000 in accessories to start. That's right, according to the latest report, New Vehicle Dealerships are responsible for $6.9B in accessory sales every year, so that means if you aren't making at least $460,000 a year in accessories, your competitor is taking your money. Of course, dealers with the right accessory process will find much more than that.

Brand loyalty has a longstanding tradition of being an excellent lead catcher for dealerships. While the appeal of the OEM remains for many customers, it’s become more complicated. Today, customers are better researched than ever before and lean heavily on reviews to make purchases. Throw in a historical inventory shortage and even your best customers are liable to jump ship out of necessity. This year, dealers have to pivot marketing efforts to capture every lead they can.

For the first time in automotive history, buying a car online is normal. From start to finish, customers can browse, accessorize, and checkout from the couch. 

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. 

While low inventory isn’t a new issue and the residual effects are going to be around for a few more years, it’s always good to share tips that have real results! Our consultants have been working through the chip shortage, in the trenches, with dealerships for the last year. Whether your dealership had lots of volume and didn’t start to see a shortage until August 2021 or your dealership felt the shortage almost immediately, we’ve been working with everyone to find the right strategies to keep revenue up where possible.

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. 

Read the full report here.

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.