Lot Management Solutions Drive Profitability for Auto Dealerships
August 3, 2017at8:00 AM
by Patrick Leonard
We’re always on the lookout for ways to utilize technology to help our auto dealership clients increase their profitability. One way to protect their assets is to utilize a lot management solution, which takes geofencing to another level for auto dealerships. To learn more about this technology, we asked the experts, Dean Powery and Richard Boyce at Trifecta Dealer Solutions.
Lot Management Solutions Empower Auto Dealerships to:
Service Retention – Service Managers receive service, maintenance and check engine light notifications, which increase service retention and corresponding revenue.
Know Vehicles’ Location – Your vehicles are tracked via GPS 24/7 and you can pinpoint each vehicle’s location instantly via a mobile app at anytime.
Track Loaners, Part Vehicles, & Demos – Be alerted when a loaner goes out of state or past a boundary you set, or exceeds a mileage or speed limit.
Locate Lost Loaners or Stolen Vehicles – Knowing a vehicle’s location, you can view its history and follow the breadcrumb trail directly to the vehicle.
Dead Battery Reports – Start each morning by handing your porter a report of vehicles that need charging instead of having your porter test each car or waiting for a sales person to find a dead battery when trying to go on a test drive with a customer.
Aging Vehicle Reports – General Managers can easily determine which vehicles are sitting on the lot (and where they are located).
Benefits of Using a Lot Management Solution:
Operation Efficiencies – Sales people, runners, and technicians can easily determine the exact location of any vehicle in seconds searching by stock or VIN.
F&I Sell-through – Dealers can add $500-$600 per copy to their front-end gross, while passing along a high-value product to customers.
Better CSIs – Reduce the time it takes to find cars via a mobile app instead of walking the lot clicking the alarm trying to find the vehicle (which can be on another lot) and never have a dead battery kill a test drive (and a sale) again.
Improve Floor Plan Audits – Auditors can find vehicles in seconds instead of hours looking for a specific vehicle to validate the VIN.
Inventory Tracking – Determine vehicles that aren’t moving fast enough and adjust your inventory as needed.
Back-up Battery – Our system has a rechargeable back-up battery which gives a true last known location of a vehicle even if the vehicle loses power.
Early Theft Detection – Be alerted when a vehicle goes off the lot after hours, including cases when employees borrow cars over the weekend.
Lower Insurance Costs – With the ability to better track your inventory, your insurance premiums should go down.
The CDS Dealership Lifecycle Management system impacts a dealership in key areas (sales, F&I, and Service) to truly drive revenue. The CDS system sends service, maintenance, and check engine light notifications back to the dealer to schedule customer appointments and increase service retention.
“Savvy dealers are creating a ‘Service Concierge’ offering for customers that eliminates the hassle customers experience when trying to book service at a dealership, greatly reducing the loss of service revenue to independent repair and service shops. Dealerships that are effectively using this product can typically generate a healthy 25-40% increase in service revenue. Understanding that as much as 75% of service revenue falls to the bottom line, this is a game-changer!” said Dean Powery.
The trifecta of total inventory management/lot control, F&I resell opportunity, and an increase in service retention (and revenue) make GPS Lot Management a “must-have” tool for competitive dealers. If you’re not using a lot management program at your auto dealership, you’re missing out because these systems easily pay for themselves and the benefit of knowing where your inventory is located gives you peace of mind.