The semiconductor chip shortage has plagued the automotive industry for almost two years now, and it isn’t destined to end any time soon. Experts don’t predict a full recovery until 2023. As we enter 2022 with emerging challenges on top of the vehicle chip shortage, some automotive dealers are at their wits end trying to sustain and grow business.
But, amidst these industry challenges, many dealerships are flexing their creativity and capitalizing on increased demand. Let’s explore some of the ways dealers are combatting the vehicle chip shortage with innovative sales management strategies.
Highlight Your Service Bay
We’ve said it before and we’ll say it again—providing exceptional customer service experiences in your service department will keep customers coming back and cement your dealership as a car-buyer’s shop of choice for vehicle purchases.
With the vehicle chip shortage impacting the number of new cars available, people are shifting their focus toward maintaining the vehicles they already own. Service departments across the country are seeing an increase in appointments, so there’s no time like the present to assess your service software needs and integrate smart customer service tactics in your service department.
Focus on Quality over Quantity
With mid-range vehicle inventories low, some dealers are introducing luxury models to their showrooms. And low supply paired with high demand means higher prices for new cars.
Moving high-end models might not be your be-all end-all car sales strategy, but every luxury or rare vehicle sale you make can help to offset inventory losses.
Expand Your Offerings
Similar to showcasing luxury vehicles, many dealerships have taken advantage of the sellers’ market by expanding their offerings to include used cars.
Since the onset of the COVID pandemic, used car prices are up an estimated 39.8% more than pre-pandemic levels. This huge price surge is a direct result of the vehicle chip shortage and will likely last until the shortage is resolved. It’s not a bad idea to keep your lot stocked with used vehicles while new models slowly trickle in.
Revamp Your Space
Some dealers have taken advantage of this slow period by performing an overhaul of their shops.
Do you have plans for a showroom remodel you wanted to start years ago? When’s the last time you updated your sales training materials? What about automating your inventory data? With less customers shopping in-person, now’s a great time to tackle the projects you’ve been putting on the backburner. When in-person sales are full-speed-ahead again, customers will take notice of your added improvements.
Refine Your Customer Service Skills
Refining your customer service strategy is never a bad idea.
No matter the situation, performing an audit of your current customer service practices and integrating modern solutions will directly impact customer satisfaction. The vehicle chip shortage has brought with it many hurdles for the automotive industry. But perhaps the one constant is the fact that customers—digital or otherwise—value exceptional customer service.
Combat Inventory Pitfalls with Smart Lot Technology
These are challenging times for car dealers. Take back control with Elo GPS lot management technology.
Elo GPS enables dealers to track inventory, manage loaner inventory, prevent loss due to stolen vehicles, reduce cost, increase staff efficiency, and increase customer satisfaction—all within one easy-to-use platform.
Schedule a demo today to get started on your creative sales management strategy.