If you have a passion for automobiles and also long to set up your very own entrepreneurial venture, setting up your very own car dealership can be a match made in heaven for you.
If you can do it the right way, you can stay assured of one thing that you’ll be having a successful career curve in future where the only way’s up and not down in any way whatsoever. The growth prospects are immense. You’ll just have to channelize all that positive energy in the right way.
Anyway, here are a few expert car dealership tips that can come in handy for you.
1. Do a thorough market research
This staple business tactic is perfectly applicable to your car dealership as well. You’ll need to determine the fact whether your service/product is in demand or not, and doing a market research is the only thing that can help you out especially when gathering customer intelligence is considered.
- First things first, you need to determine whether your business locality’s got itself a good amount of potential customers or not. For that, you need to find out the number of cars that have been sold in that very area itself.
- Once you determine the number of cars sold in your business area, you need to research them up by category. Are they trucks? Or SUVs or sedans? Do your customers prefer brand new vehicles or do they mostly go for used car purchases? You have to find them out as well.
- Do you have any competition? If there’s any, research him/her to perfection like what makes him/her so successful or what has resulted in his/her downfall etc.
- Last but not the least; you’ll have to find out the car brands that sell the best in your business area. Example: Honda or Mercedes? Or do you think Chryslers sell the best? You need to find the answer as quickly as possible.
2. To new or used, now that is the question
Market research is done and dusted. Your dealership brand’s fixed as well. It’s time to actually go for it with full guns blazing.
But hold on for a minute! Do you want to go for a used or a new vehicle dealership?
If you want to start with a brand new car dealership, you need to remember that your initial investment can actually go off the roofs. So if you are on a tight budget, it can be a very bad idea for you.
A used car dealership is more than capable of taking a substantial amount of load off your arms. And it’s lucrative business as well if you manage to sell your customers certified used cars in particular. So take your time and decide. New or used? Decide wisely.
3. Do you need a service department?
This can really be a very good idea n your circumstances and can actually generate a source of extra revenue for your business venture.
Almost everyone needs to service his/her car at some point of time. So a servicing department is almost in no danger of losing its business over time. It’s also a great way to building up trustworthy relationships with customers.
There are several other benefits as well. Let’s go through a few more of them:
- Your servicing department helps can also help you develop relationships with other customers who have actually bought their customers from other outlets. If you do a good enough servicing job on their cars, they may very well purchase their next car from you.
- Your servicing department can save your customer a lot of headaches; something that can help to build up your business credibility.
- Your servicing department can also help to promote and market your company to the masses as a whole.
4. Decide on your finance
Starting a car dealership is an expensive piece of business indeed. Your biggest expenses will be your inventory. You need to have a clear financial goal to kick-start your business in gear.
A franchisee option can be a great idea if you are on a tight budget. For example, if you opt for a “Chrysler dealership Edmonton” as a part of your franchisee option, you need to pay a small amount of franchisee fee to Chrysler at the start. You’ll then need to pay annually as defined by your franchisee agreement. These things can undoubtedly benefit you a lot in case you’re on a lean budget.
A car dealership is a lucrative piece of business indeed if you can get everything right to perfection. We hope these tips come in handy for you in case you are serious enough to get into this venture of yours. It’s time we bring this article to an end for now. We wish you all the best with your business endeavor.