Digital Dealer - March 2018 - 22

By Brian Finkelmeyer
Director of Conquest
Business Development,
vAuto

// Sales
Strategies

3 Fundamentals
to Push Your
New Vehicle
Performance,
Profitability
You could sum up
the ways dealers are
navigating this year's
new vehicle market with
three words-focus on
the fundamentals.
The focus comes out of
necessity:

Sales volumes aren't
what they used to be.
Dealers know it'll take
a little more effort and
energy to maintain their
market share, and meet
factory sales objectives in
the current environment.

As one dealer put it, "it's
softer out there, but we're
finding our way."
Expenses are up. We
might take some solace
in the fact that AutoNation CEO Mike Jackson
now sits on the Federal

Reserve Bank of Atlanta.
He understands that
a rapid rise in interest
rates isn't good for the
car business. Most
analysts expect interest
rates to rise multiple
times in the coming
months. The only question is when and by how
much. At the same time,
other expense line items
continue to climb. By the
middle of 2017, NADA
reports that expenses as
a percentage of dealership sales rose to 96.6
percent, up nearly three
points from 2016.
Margins continue to
shrink. Some dealers
have seen a little margin
pressure relief as a
better balance in sedans
and SUVs/Trucks is
resulting in higher-margin retail sales. But the
broader picture remains
pretty grim. Net retail
profit per new vehicle
sold ran nearly -$400
for much of last year,
according to NADA.
The story seems to be
repeating itself so far in
2018, and I'm among
those who don't think the
trend will reverse course
any time soon.
With these conditions,
dealers are focusing
on the fundamentals in
three key areas of their
new vehicle businesses
to help maximize their
performance in today's
more difficult environment:
1. FACTORY ORDER
OPTIMIZATION.

22

MARCH 2018

D I G I TA L D E A L E R . C O M



http://www.DIGITALDEALER.COM

Table of Contents for the Digital Edition of Digital Dealer - March 2018

Digital Dealer - March 2018
Contents
What Are You Offended By Today, and What’s It Costing You?
How you Receive and Utilize Data in This Marketplace Determines Your Success
A Mystery Shop for a Major National OEM
It Takes Two: Who is Buying All of These Dealerships?
3 Fundamentals to Push Your New Vehicle Performance, Profitability
Mastering ‘Experiential’ Marketing!
Digital Dealer 24 Conference & Expo Speaker Highlights
Wes Lutz, Owner Extreme Chrysler- Dodge-Jeep-Ram
If You Are Losing Your Donkey – Check This
Big Data Busted 3: How Large Auto Groups Can Win With Better Data
From Self-Driving to Personal Robot: 5 Ways the Car of the Future Will Change Your Life
Facebook Betting Big on Auto: Tailored Solutions to Industry Challenges
Digital Dealer - March 2018 - CT1
Digital Dealer - March 2018 - CT2
Digital Dealer - March 2018 - Digital Dealer - March 2018
Digital Dealer - March 2018 - Cover2
Digital Dealer - March 2018 - Contents
Digital Dealer - March 2018 - 2
Digital Dealer - March 2018 - 3
Digital Dealer - March 2018 - 4
Digital Dealer - March 2018 - 5
Digital Dealer - March 2018 - What Are You Offended By Today, and What’s It Costing You?
Digital Dealer - March 2018 - 7
Digital Dealer - March 2018 - How you Receive and Utilize Data in This Marketplace Determines Your Success
Digital Dealer - March 2018 - 9
Digital Dealer - March 2018 - 10
Digital Dealer - March 2018 - 11
Digital Dealer - March 2018 - A Mystery Shop for a Major National OEM
Digital Dealer - March 2018 - 13
Digital Dealer - March 2018 - 14
Digital Dealer - March 2018 - 15
Digital Dealer - March 2018 - It Takes Two: Who is Buying All of These Dealerships?
Digital Dealer - March 2018 - 17
Digital Dealer - March 2018 - 18
Digital Dealer - March 2018 - 19
Digital Dealer - March 2018 - 20
Digital Dealer - March 2018 - 21
Digital Dealer - March 2018 - 3 Fundamentals to Push Your New Vehicle Performance, Profitability
Digital Dealer - March 2018 - 23
Digital Dealer - March 2018 - Mastering ‘Experiential’ Marketing!
Digital Dealer - March 2018 - 25
Digital Dealer - March 2018 - 26
Digital Dealer - March 2018 - 27
Digital Dealer - March 2018 - Digital Dealer 24 Conference & Expo Speaker Highlights
Digital Dealer - March 2018 - 29
Digital Dealer - March 2018 - 30
Digital Dealer - March 2018 - 31
Digital Dealer - March 2018 - 32
Digital Dealer - March 2018 - 33
Digital Dealer - March 2018 - Wes Lutz, Owner Extreme Chrysler- Dodge-Jeep-Ram
Digital Dealer - March 2018 - 35
Digital Dealer - March 2018 - 36
Digital Dealer - March 2018 - 37
Digital Dealer - March 2018 - 38
Digital Dealer - March 2018 - 39
Digital Dealer - March 2018 - If You Are Losing Your Donkey – Check This
Digital Dealer - March 2018 - 41
Digital Dealer - March 2018 - 42
Digital Dealer - March 2018 - 43
Digital Dealer - March 2018 - Big Data Busted 3: How Large Auto Groups Can Win With Better Data
Digital Dealer - March 2018 - 45
Digital Dealer - March 2018 - From Self-Driving to Personal Robot: 5 Ways the Car of the Future Will Change Your Life
Digital Dealer - March 2018 - 47
Digital Dealer - March 2018 - Facebook Betting Big on Auto: Tailored Solutions to Industry Challenges
Digital Dealer - March 2018 - Cover3
Digital Dealer - March 2018 - Cover4
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