I am waiting for my girlfriend to get ready for her birthday dinner and wanted to quickly write down a few lessons I’ve learned from Evenlevel. I went in to Evenlevel with the idea that dealers were antiquated, I was wrong. Dealers provide serious value to the consumer:
- They help the customer make an informed buying decision
- They make it easy for the consumer to find financing
- They make it easy for the consumer to get rid of a trade
- They provide service after the sale
Consumers are looking for a change in the interaction between sales people and customer, but not an end to dealerships. Customers may think they want to save money, but really they want convenience. If something goes wrong with a car, regardless of how much they saved, they want the dealer to take care of the problem.
The trick, in the coming years, is how to make dealers more profitable by more aggressively adopting technology to improve sales, margins, and the customer experience. 2% net margins are ridiculously low, and according to a McKinesy report, well run dealerships are four times as profitable as poorly run dealerships. The industry still needs to change, it’s just back to the drawing board.