Car dealerships are taking a hit with the chip shortage problem, leaving many to wonder how they can still make a profit when the car inventory is dwindling away. The reality is, if your dealership doesn’t shift its focus now, it could dramatically hurt the bottom line.

It’s time for fixed ops to take center stage, just like they did at the height of the pandemic. There are ways to bring in more revenue during this time and do more than survive. In fact, your dealership can thrive.

Here are a few shifts you should consider making.

Recommend Accessory Upgrades for Customization

Upselling accessories always created a valuable revenue stream for dealerships, but now it is more important than ever. As people continue to search for new or pre-owned cars that they can’t find, it is your job to convince them they can be happy with their existing car. You do this by offering customization and accessories that meet their needs.

For example, if the customer is ready for a new look, you might consider upgrading the rims. If it isn’t the rims they are looking for, maybe they will be happy with a new in-car entertainment system or a truck lift kit.

To successfully market this merchandise to your customers, you want to showcase a vehicle that already has it installed. It should appeal to them so greatly that they feel like they have no choice but to customize their vehicle too.

As you look at selling more accessories and customizations, you can execute this in several ways. Some dealerships choose to keep all the work and sales in-house, while others will sublet area for another company. The latter option is ideal if you are concerned with liability issues or don’t want to do the work.

Car Servicing for More Miles

It’s always been essential for your customers to have their vehicles maintained, but it’s more important than ever right now. No one wants to have their car break down at a time when it is so difficult to buy a new one. Send out an email to your customers reminding them that regular maintenance can keep their vehicle running longer. You should provide information on their next service appointment, so they know when to schedule.

Additionally, during the service appointment, you could easily upgrade to better parts. For example, instead of doing a conventional oil change, talk to your customer about the benefits of synthetic oil and a better filter. Not only will you help them get more mileage out of the vehicle, but you will be able to charge more for the service. The same goes for spark plugs, brakes or any component that could be easily upgraded for a longer service life.

Seize Every Opportunity

As any dealership knows, your strategy needs to constantly change and evolve to accommodate whatever is happening in the world around you. The COVID-19 pandemic forced dealerships to become flexible, but it’s not time to stop yet. As chip shortages continue and inventories vanish, you must shift your focus if you want to succeed.

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