By Luis Deville
The year 2020 will certainly be remembered for COVID-19, and as a result, may also be remembered as a period of discounted sales and incentives. Many retail establishments have faced difficulty trying to generate sales during the COVID-19 pandemic. One popular strategy we have found from vendors in various industries is providing sales discounts and incentives in order to attract or retain customers. Manufacturers, dealerships, and lenders have each provided enticing discounts and incentives to stimulate car sales during uncertain times. Based on the results we have seen, it appears these enticements have contributed to many dealers’ ability to navigate 2020’s economic challenges and for some, even grow sales volume. But why should the dealership’s customers be the only ones benefiting from discounts and incentives? Why shouldn’t dealerships also benefit from the trend from their vendors?
Dealerships sometimes focus so much on sales and attracting new customers that they forget to focus on themselves. Dealers, as customers of their suppliers, should also look internally to ensure the best value is being received for today’s money, in today’s economic environment. Companies tend to get comfortable with incumbent vendors, and the services and products they provide to conduct everyday business. Being content with the status quo may cause dealers to miss out on product or service updates, whether in pricing, quality, or value received. These are missed opportunities to potentially enhance current performance and make operations more profitable and efficient.
As the year end approaches, now is a great time to take some time to reach out to existing vendors and see if there are any updates to the technology, services, or other assets they provide which might be outdated. Some vendors may be willing to renegotiate contracts or provide new products at a discount. Maybe there are other vendors that provide the same product at a better price.
Be pro-active and reach out to existing vendors and potential new vendors and see what they have to offer. Find out if there are any discounts and renegotiations for the taking. As the saying goes “you do not get the sale you do not ask for.” It is also quite possible you will also not get the discount you do not ask for.