Operating a used car dealership can be an extremely rewarding venture, but it’s likely to carry some ups and downs. Sales vary seasonally, and changes in inventory and consumer demand can have a swift and significant impact on your profitability at any given time. Everything that you can do to reduce your overhead without compromising the quality of your work and services is extremely important to your bottom line. Here are some tips on how you can save money month after month.
Utilize Digital Marketing Effectively
In years past, advertising efforts used to comprise a significant part of dealerships’ operating budget. Currently, many dealerships are able to generate a lot of leads with digital marketing alone. Make the most of inexpensive digital marketing tactics such as social media outreach and email campaigns. A marketing strategy that relies heavily on online efforts saves both money and time.
Work With Affordable Vendors
Always make it a point to look for deals on any type of supplies or materials that you buy on an ongoing basis. You should seek out competitive pricing on everything from office supplies to spare parts. If you need key fobs Tacoma WA, for example, reach out to a vendor who has extensive experience serving dealerships in your area.
Bid Out Service Contracts
Everything that you have an ongoing service contract for needs to be priced competitively. Before you renew any type of a contract, you should bid it out to other service providers in your area to ensure that you’re getting the best price available. Don’t simply automatically renew contracts before finding out what other offers are available to you. You should start the process around three months before a contract expires so that companies will have enough time to turn around a custom quote for the services that you need.