These past few years have been pretty good to the automotive industry. There are fewer dealerships, larger markets, more customers to serve, and last year we had record sales. But, the future doesn’t look quite as bright.
We are staring down the barrel of a sales plateau and the continuing decline of front end gross for both new and used vehicles. With forecasts like these, where are dealerships going to find profit? Certainly parts, service and F&I will continue to bring their usual amount of profit, but what about new growth opportunities?
Status quo is no longer an option for businesses of any kind, let alone dealerships. To remain successful you must change with your customers; you must change with the times.
There are several industries outside automotive where this is evident as well. Kodak’s film division is no longer in business because it couldn’t adapt to digital, Blackberry is gone because it was too slow to change, and today, taxis and shuttles are losing market share to Uber.
There are also several industries that have faced a similar sales plateau and have come out still in business, with many thriving. The key to their success is adapting to the changing demands of the consumer.
The new consumer for automotive is the Millennial generation. They bring a whole host of challenges with them, but they also bring opportunities and potential for your business to grow.
In my session at Digital Dealer, “Reap the Rewards of a Changing Market – Don’t Get Blindsided by the Changing Market Dynamics. Take Advantage of These New Trends So You Can Succeed in This New Automotive Retail World“, we are going to discuss the changes in the automotive market, those industries that have survived and thrived in a similar sales plateau, and how you can take advantage of the Millennial market to be successful.
Author: Mitch Falink
Mitch Falink is vice president of Variable Operations Sales at Reynolds and Reynolds. Falink received his bachelor’s degree in Political Science from The University of St. Thomas in St. Paul, Minnesota. He started his career at Reynolds in 1997 as a system account manager. Since then, he has steadily climbed the ranks within the company. He became Midwest CRM specialist in 2003 and was promoted to the national CRM specialist position in 2005. Falink then became regional sales director for the Southeast in 2007 and was named to his current role in 2016. E-mail: firstname.lastname@example.org.