Your Business Checkup

Whether you’re thinking it’s time for spring cleaning or for an annual checkup, you need to look closely at your business at least once a year.  No matter how large or small your dealership is, you can’t gauge the effectiveness of any changes you’ve made without analyzing the benefits and bottom line.  Here are a couple of things to think about to get you started:

How do your current sales compare to the last couple of years?  Right now it might be okay to have your sales be level, but don’t lull yourself into being satisfied with that.  People will always be buying cars and the dealership that innovates it’s sales process will stay in business and increase bottom line as people start spending more.  

What percentage of your business is from repeat customers?  This is important to know because if it’s too low, then it needs to be improved.  The estimated cost of getting a new customer versus retaining an existing one can be as much as five to one in terms of dollars spent.  Keeping customers is more cost-effective than constantly seeking new ones.  Joe Girard was a master at this. He cultivated relationships with customers so when they were ready for a new car, he was the first person they thought of.

Do you consider marketing and advertising to be expenses or investments?  How you look at the money spent in these areas affects your willingness to spend it at all.  Marketing is an investment in your dealership.  The old adage that you have to spend money to make money is true, but you must spend it wisely.  Spend on ads and promotions that produce results and bring you customers.

Do you know what PR is and how to use it to positively position your business in the media?  I’ll bet at least one of your competitors does.  Nearly every mention of a company or business in the media is the result of publicity efforts.  Being quoted or featured in an article speaks volumes to readers who are your potential customers.  A good PR consultant can help you get press and then show you ways to extend the shelf life of that publicity. 

Do you treat your return customers better than your drop-ins?  You should.  If your customers don’t feel special when coming to you for products or services, why should they remain loyal to you?  Have a customer appreciation day or a special, invitation-only event for your regulars.  Create a mailing list of your return customers.  Send occasional post cards or greeting cards for special events or just to keep in touch. 

How long has it been since you really talked to one of your customers?  Your customers will happily tell you anything you want to know. All you have to do is ask.  Look for ways to reach out to your customers.  The personal touch in an impersonal world will be remembered.

How is your dealership doing compared to your competition?  Every company has competition.  Is their business growing or downsizing?  Is their service better than yours?   Think about how you can improve your service to meet or exceed your customer’s expectations and outshine your competition at the same time.

Are your employees happy?  Don’t ask them directly, but observe them throughout the day.  Watch, listen, and learn.  Employees who like their jobs don’t watch the clock for quitting time, aren’t habitually late, don’t have poor body language, don’t spend time on personal phone calls, and don’t look like they’ve never smiled.  Observe how they interact with customers.  Make sure you don’t have an employee who is driving business away.  Your employees can make or break your dealership.

Now is the time for the checkup and it doesn’t have to be a long, drawn out process.  Just do it.