Margin compression is a known problem in the auto sales industry. It has been for years. And yet, there’s a mystery surrounding the problem that most dealerships can’t crack. Too often the knee-jerk reaction…
Drive to Success: Challenge Margin Compression
Margin compression in auto sales is a problem that’s been building for years. And, unfortunately, it’s not going away anytime soon. But there are several things dealerships can do to mitigate the negative effects…
Fight Back Against Margin Compression
Margin compression is taking a toll on the auto retail industry. Dealerships across the country are reporting slimming margins, with some even experiencing negative overall gross profits. And the problem isn’t going away anytime…
Margin Compression Solution: Cut Holding Costs
In auto retail, time is money. The faster you sell cars, the faster you bring in money and more inventory. Rinse, repeat, and reap the rewards of your efficiency. In today’s margin compression environment,…
Margin Compression Solutions: Process Improvements
Overcoming Margin Compression with Digital Sales The age of margin compression is forcing auto dealers to think creatively about traditional car sales. Making a profit requires cutting costs and emphasizing other areas of your…
Margin Compression Solution: Fixed Operations
As other sources of revenue run dry, fixed operations can provide a steady stream customers and renewable income. In fact, according to economic research company IBISWorld, the parts and services segment was projected to generate 13.6% of dealerships’ revenue in 2017, outperforming both new and used vehicle sales.
9 Ways You Might be Wasting Time in Your Dealership
The classic formula for success in the auto retail world is changing. Margin compression is forcing dealers to rethink their strategies, and selling more cars to make more money simply isn’t working anymore.
What is Your Strategy to Combat Margin Compression?
Many changes within technology around us cause consumers to behave differently, which in return creates a difficult environment for the auto industry to prosper. In some ways, all of these changes are making our industry stronger, more disciplined, and helps us shift focus where it needs to be—the customer experience.
Drive to Success: Combat Margin Compression
Dealerships face shrinking margins today more than they have in the past. There are many new ways to sale cars, but in order to avoid margin compression, dealerships should invest time and money into selling cars more efficiently. Try changing your sales processes, scrutinizing the revenues and costs from each of your departments, and increasing the speed of used car sales.
Dealership Margins: Finding Solutions to a Compressing Problem
Margin compression, the gradual decrease in the difference between cost and profit of new and used cars, is becoming a serious problem for many dealerships.
Infographic: 7 Solutions to Margin Compression
Margin compression is an on-going issue for today’s dealerships. Learn 7 Solutions to Margin Compression with our Infographic.
