By Steph Colinswood, WMS Group marketing manager
The biggest mistake many dealerships have made in recent years is assuming that it’s ALL about cost, by slashing stock prices in a bid to increase volume and market share.
Yes, buyers want a good deal - but the truth is, they will pay a little more for a vehicle from you instead of your competitors if they’ll receive something that holds a significant value.
The marketplace is full of noise as your fellow dealers aim to entice buyers into parting with their cash, so ensuring that your sales offerings have a unique selling point has never been more crucial.
If you were to include a FREE motoring package (RRP £500) endorsed by Stirling Moss as part of the deal, then couldn't you use it to offset reductions instead? It may be a big change to your business model, especially when you've spent so long battling in the price war, but with the right support and platform your dealership could be transformed for the better.
This is exactly what retailers such as Skurrays, Browns Mitsubishi, the Stojonov Group, and Proton have done for their new and used stock, and they're continuing to reap the rewards by using its value to their advantage instead of discounting heavily.
‘Safe and Sound’ is a seven element scheme currently offered by over ninety dealerships nationwide, bringing competitive, territorial and commercial advantages to businesses and genuine peace of mind to buyers.
Dealers taking part will include:
• A sixty point safety inspection to rule out any accident causing defects;
• Full provenance check which ensures it doesn’t have a hidden past;
• A six month wear and tear warranty covering all mechanical and electrical items;
• Six month UK recovery including home/roadside repairs, assistance and relay (no excess);
• Mileage verification to ensure that the vehicle hasn’t been clocked;
• Independent valuation which shows that you’re asking a fair price;
• And finally the buy-back promise, meaning that you guarantee to buy the vehicle back regardless of its age, mileage and condition which customers can use as part payment on their next vehicle.
Warranty and breakdown cover of this caliber would usually come with a hefty price tag, but Garry Scholz from Kings Chrysler (Sytner dealer) recently commented: “The warranty cover is equivalent to the manufacturers’ warranties, and the prices are very competitive too.”
Dealers are also capitalising on our range of incentives (such as receiving up to 50% cover free of charge when upgrading to a longer term) to upsell and ultimately create more profit, which has seen some achieve around a 400% ROI.
Last month, independent dealer Dunecht 4x4 reported a 71% conversion rate on 18 month ‘Safe and Sound’ warranty upgrades, resulting in a £5,500 gross profit before vehicle sales.
Whilst the industry is currently facing tough trading conditions, this is a prime example of how 'Safe and Sound' can help you to thrive in such a competitive marketplace by boosting footfall, increasing your retention and margins, and perhaps most importantly convincing the customer to hand over their signature.
A little bit of effort and good customer care is all we are asking from you to join the ever-growing network.
In return, we’ll supply you with FREE sales and marketing support, the use of the ‘Safe and Sound’ and Stirling Moss brands, copious point of sale materials, many NEW customers from our extensive consumer-facing marketing campaign, additional revenue streams, increased customer retention levels and much more.
So it's your choice - either follow the flock or make a change today!
Request your FREE dealer pack today at www.safeandsound.co.uk/dealers/ or call our business development director Eric Stone on 07789 682502 for more information.
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