DealerSocket’s Independent Dealership Action Report uncovers key growth opportunities in light of increasing franchise competition
Report identifies industry trends, performance metrics and actionable strategies to help independent dealers acquire inventory and grow revenue amid heightened competitive landscape.
SAN CLEMENTE, Calif. – Sept. 16, 2015 – In a preview of its inaugural Independent Dealership Action Report, to be released at the Innovate 2015 Conference next week, DealerSocket announced that more than half of surveyed dealers cited inventory acquisition and access to capital as the top problems facing their business this year.
“Independent auto dealerships face a tough challenge in today’s market – competing against often larger and better-funded Franchise dealers,” said Marylou Hastert, Director of Product Marketing at DealerSocket. “According to our data, Franchise dealerships are seeing an average 617 percent higher yield in gross profits selling used cars. And they’re selling them an average 16.5 days faster than new vehicles. As a result, Franchise dealers are stepping up their activity in an area previously dominated by Independents.”
DealerSocket says the new influx of Franchise competition is intensified by their big marketing budgets and referral bases. “Ultimately, Independent dealers will be forced to adopt a more innovative, preemptive approach in order to thrive,” Hastert said.
According to the report, Independent dealers who leverage technology are emerging successful in the head-to-head competition with Franchise dealers for both used vehicles and customers. The report reveals:
· How Independent dealers can acquire the right inventory, at the right price, in spite of Franchise dealers’ access to closed auctions
· The most overlooked source for Independent dealers to purchase used vehicles, while simultaneously increasing revenue
· The key technology most Independent dealers still don’t have that achieves an average 660 percent return on investment – while also enabling them to turn inventory an average 27 days faster than franchise competitors
DealerSocket will unveil its full Independent Dealership Action Report at Innovate: The Independent Dealer Industry Conference, Sept. 20-23 in Fort Worth, Texas. DealerSocket President and CEO Jonathan Ord will discuss the findings during his opening keynote.
All Innovate attendees will receive hard copies of the 43-page report, which analyzes industry trends, performance benchmarks and metrics, and consumer online shopping behaviors. Sources include:
· Key performance data from 2,150 independent and buy-here-pay-here dealers
· DealerSocket survey results from 4,000 independent and buy-here-pay-here dealers
· Experian data from NIADA’s 2015 Used Car Industry Report
· NIADA proprietary industry analysis
· JD Power – Power Information Network
DealerSocket’s Independent Dealership Action Report comes on the heels of a similar initiative for the Franchise market, which was released at the company’s User Summit in August.
In addition to receiving the comprehensive industry report, Innovate attendees will access more than 80 classes – all more than 1 hour long – that dive deep into compliance, technology, collections, finance, accounting, operations and more.
Innovate is the only show for Independent dealers and lenders with two full compliance tracks, which by themselves cover 16-20 different topics. In total, attendees will access more than $10,000 in legal insight for the price of admission.
DealerSocket expects more than 500 attendees at this year’s conference, including 35+ major exhibitors and financial institutions that were hand-picked through an invitation-only sponsor selection process.
To view the full schedule or buy tickets, visit MyInnovate2015.com.
DealerSocket is a leading automotive technology platform that helps dealerships in the United States, Canada and Australia improve profitability through a fully integrated suite of marketing, sales, service, customer experience DMS and data mining solutions. Headquartered in San Clemente, Calif., DealerSocket employs more than 650 people, serves more than 6,500 dealerships and 206,000 active users in the United States, Canada and Australia. DealerSocket’s advanced technology provides benchmarking data that paces the industry, and its insightful experts identify trends and develop strategic roadmaps that help dealers optimize processes and operate more profitably. Visit DealerSocket.com for more information.