Jan 11 2013
Wikipedia defines a "car dealership" as a business that sells new or used cars at the retail level. If you asked most people who own or work for dealerships, or even consumers, to define what dealerships do, the majority would start by saying "They sell cars". It is the selling of new and used vehicles that defines a dealership and is it greatest source of revenue. Most of the effort put forth by the business is to capture vehicle sales, and with good cause.
Vehicle sales are the lifeblood of every dealership business. Most every other business opportunity in the dealership is dependent on the sale of new and used vehicles. However, a funny fact known throughout the dealer industry is that vehicle sales are not where most dealers make the majority of their profits. So where do the profits for dealers come from?
A 2011 dealer survey found that service related sales accounted for less then 20% of revenue, but more then 70% of dealers profit. Parts and service sales provide some of the widest margins for dealers and are responsible for the majority of dealership profits. However, for many dealers the tools and approach they take in marketing their parts and service is about a decade behind their new and used vehicle marketing.
For many dealers their online service and parts presence is a single page with a sad little "contact" form. Some may add a "Meet the Service Team" bio page which, while nice, doesn't help a visitor convert into a sale. Most dealers marketing efforts amount to mailing and emailing non-descript offers (10% off your next oil change), and possibly texting a generic notification that an undescribed service may or may not be due. While this is better then nothing, I think we can all agree that it is not an ideal approach.
The good news is that most dealers have a lot of opportunity to improve the marketing of their parts and service, and to improve it quickly with a modest amount of effort. Getting the right data and tools in place to support a more robust and interactive online experience is a great place to start. Click on the button below to download our White Paper "10 Steps to Increased Profits by Marketing Parts and Service" and start increasing your profits by maximizing your parts and service revenue.
