Solving the Mystery of Margin Compression

Margin compression is a known problem in the auto sales industry. It has been for years. And yet, there’s a mystery surrounding the problem that most dealerships can’t crack. Too often the knee-jerk reaction…

Fight Back Against Margin Compression

Margin compression is taking a toll on the auto retail industry. Dealerships across the country are reporting slimming margins, with some even experiencing negative overall gross profits. And the problem isn’t going away anytime…

Margin Compression Solution: Fixed Operations

As other sources of revenue run dry, fixed operations can provide a steady stream customers and renewable income. In fact, according to economic research company IBISWorld, the parts and services segment was projected to generate 13.6% of dealerships’ revenue in 2017, outperforming both new and used vehicle sales.

What is Your Strategy to Combat Margin Compression?

Many changes within technology around us cause consumers to behave differently, which in return creates a difficult environment for the auto industry to prosper. In some ways, all of these changes are making our industry stronger, more disciplined, and helps us shift focus where it needs to be—the customer experience.

Drive to Success: Combat Margin Compression

Dealerships face shrinking margins today more than they have in the past. There are many new ways to sale cars, but in order to avoid margin compression, dealerships should invest time and money into selling cars more efficiently. Try changing your sales processes, scrutinizing the revenues and costs from each of your departments, and increasing the speed of used car sales.