Report: Chasing Price Hurts Gross, F&I, Service
A new report makes the case for chasing value over price, a strategy that auto dealerships nationwide are adopting to generate higher front-end & back-end grosses while earning lifelong service customers.
A new whitepaper from Binary Automotive Solutions urges dealers to focus on lifelong relationships rather than short-term sales reports.
Photo courtesy Binary Automotive Solutions
BEDFORD, Texas — Binary Automotive Solutions announced the release of a new whitepaper that urges dealers to abandon the race to the rock-bottom per-unit price, particularly for new-vehicle sales. “Stop Chasing Price, Start Chasing Value” makes the case for shifting focus to “value” customers — those who prioritize safety and security throughout the sales and ownership experience.
The whitepaper offers a three-step process dealers can use as a roadmap to a new and unique value proposition that can immediately drive traffic to your dealership and improve average front-end grosses while driving higher service RO counts.
Central to the report’s arguments is that F&I departments of forward-thinking dealerships — where dealers and general managers focus on “value-conscious” customers — are watching extended service contract penetrations climb and total F&I profits continue to exceed expectations.
“Our work in dealerships combined with available research proves that dealerships focused on value-minded customers and delivering value through things like a lifetime powertrain warranty program are on the fastest path to higher per-copy averages and busier service departments,” said Binary Automotive Solutions CEO James E. Binkley.
To download your free copy of “Stop Chasing Price, Start Chasing Value,” click here.
Originally posted on Auto Dealer Today
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