Posts Tagged ‘Dealership’

Wait a second, a CRM solution for my dealership supposes to help me make more profit, easy to use and help me to organize files better. How can it work against me? Well you are in for a treat for some of the hidden problems your CRM solution vendor wouldn’t tell you. Let’s put aside about the outrageous price tag for a moment, just focus on the tools, features and programming logic. Most of today’s automotive CRM solution are all web based, worse yet they are designed by the ex-car sales manager who has absolutely no training or education in computer science or programming languages. The product is usually produced by developers or application programmers who have no clue of automotive business. This gap in knowledge and experience can result in some poorly developed web portals that can be counter productive and outright backwards. Because most of the CRM solutions today are web based, there is the first issue of system performance. Although a web based system is cheaper to develop and easier to maintain, but it is vulnerable to hackers and attacks compare to a full blown desktop application. Imagine every data field and text input has to be processed by some PHP script on the server, you will have to wait for server response on every page load. How much time do you think that system will waste compare to a desktop application? If used incorrectly the CRM will add unnecessary complexity to a very simple situation of selling cars. But because most of the sales manager are impressed by the I.T business overall, they love to know if the portal has the latest capabilities or integrations without knowing the long term effect it can cause the dealership, or in another word the “big picture”.

So for the past 15 years you have been managing your inventory through paper and pen, and for the last 2 years you have moved to an Excel spread sheet to do the same job. Now you are ready for a full blown CRM solution that can update your inventory instantaneously to your website, and get instant traffic and sales calls. But you are not sure which CRM solution to go with? If you have thought about this transition, you have probably realized you have out grown your spread sheet. Now you are ready for more, more than just recording the year, make and model of your inventory, more than just selling price and how many days this car has been in stock. Generally speaking if you have more than 3 sales people employed for your company, you should have some kind of customer relationship management software specifically build for the automotive industry to help you run your business. Why? Because you can track their sales performances, inventory turn over ratio, tracking 1-800 phone calls, and above all effectively manage your inventory that is tightly integrated with your web site.

DMS system or “Dealer Management System” refers to the complete packaged software that can run your automotive business. From printing service invoices to manage internet sales, from inventory management all the way to accounting and payroll. It is suppose to be the comprehensive system that is able to run a dealership all in one. But the software vendors in the market place are often poorly developed and hopelessly outdated. Many of the DMS or even the CRM solutions out there can be unnecessarily over complicated and redudant. Trying to enforce certain processes in the automotive business often leads to overwhelming human errors, and counter productive system glitches.  If you can take some time out for a little research, you should ask your support staff just how many functions of your DMS system they are truly using on a daily basis. Or better yet, pick a random function in your DMS system and quiz your staff on it. If your dealership support staff are only using a small fraction of your current DMS system, don’t you think it is a complete waste of money and time to have these over complicated system that is never put into use? If your DMS system require intense user training on top of that, don’t you think you are using the wrong system all together? Perhaps you are creating unnecessary obstacles for your business that is separating the meaning of team work.

We all know just how tough it is in the beginning stages of any business, there will be a huge overhead includes office space rental, inventory, signage printing, and of course your virtual office that is your web site. Assume you are like many other entrepreneurs out there who has taken a loan from the bank, you will be responsible for some big payments on your loan very soon. It is absolutely crucial for you to minimize your expenses in the beginning, and to make your business a long lasting and profitable endeavor. You will have very limited time to overcome these hurdles cost effectively. But surprisingly enough one of the biggest obstacles you will encounter is trying to find a suitable hosting company, who can offer you a complete web based package. This will include your web site development and design, hosting fees, online SEO services, and of course a suitable CRM solution to run your business. It’s not unheard of when companies are paying as much as $20,000 for their initial setup fees, and as much as $6500 per month for hosting and a CRM system.    

You don’t need to make these hefty investments just to test the water for your business idea. If you are looking for a no setup fee, quick turn around, cost effectively monthly payment plan for all your internet, web hosting and CRM needs wouldn’t that be perfect? Introducing Dealer Elite CRM, your affordable automotive web site, hosting and CRM solution offered as a package. You no longer need to spend $20,000 just to find out your business out look is bleak. Instead you should consider to minimize your initial investment and better utilize your valuable resources for things like better inventory, higher bank reserves, and office rental reserves.

How many times have you driven by a car dealership to find salespeople huddled or lined up by the showroom door like vultures waiting to pounce on the next customer?

In today’s market, spending has significantly decreased, and dealerships must be more proactive in creating a maximized sales environment and managing sales activity if they want to sell more cars and generate profit.

On top of this current problem affecting auto sales, in-store traffic is at an all time low, as many that need to purchase a vehicle do the majority of their research and kicking of the tires online to determine what they want and can afford, and then call the dealership, rather than browse the showroom like the good old days.

The advent of the internet has changed how people shop for cars. Isn’t it time your sales training changed to adapt to get current with the times?

Sales training in the auto industry typically used to just be for the auto sales team. The managers would send their crew to a seminar where they would learn about the latest and greatest tactics and techniques in showroom behavior. The salespeople would return to their dealerships all pumped up and ready to implement what they just learned.  Then two weeks later, it is back to business as usual.

Why This Does Not Work

Bottom Line: You need effective automotive sales management to have effective salespeople.  Managers need automotive training as well as the auto sales staff.

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