Fighting Margin Compression | Dealers Compressed Episode TWO


Are you ready to fight? You should be. The advancements in the industry aren't slowing down and you'll only find yourself further behind. Do you know what your biggest challenge is? In this episode, we identify the 4 biggest challenges you'll face.

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Dale offers four broad strokes to address what calls "critical assets" in this fight.

  • First, customers. Start giving them exactly what they want and stop forcing them to do business your way. Improving the experience will increase efficiency and improve your margins.

  • Second, inventory. This is vAuto 101. Don’t hold inventory that represents a poor investment. Aged vehicles are significant profit drainsand top performers do 50% better in this area.

  • People. Dealers have historically terrible turnover rates and to Dale, this not only borders an industry embarrassment, but also means huge profit losses. He dedicates the entirety of chapter six to this.

  • And finally, facilities. Dale addresses missing the mark on consumer relevance and the actual return on investment later in this book. In summary, margin compression is here to stay. The sell more to make more adage doesn’t work.

So find out where you are in adopting the new mentality and start moving toward the exits before you become that old car in the compactor. Which dealer are you? Which dealer will you choose to be?

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