In a challenging economy every dollar counts. The only way that your dealership is going to survive 2023 is by Reducing costs.
That bring us to the question. As a Motor Dealer in the UAE, How Can I Reduce My Costs in 2023?
EasyCars has put together 5 ways your dealership can reduce costs in 2023.
Let’s get started!
1. Find Cheaper Ways of Sourcing Vehicles
Sourcing Vehicles to sell is by far the most important part of running a Motor Dealership in the UAE. If your dealership doesn’t have vehicles to sell, you will have no way of generating revenue to operate. The first way that your dealership can reduce costs in 2023 is by using cheaper ways of sourcing vehicles to sell.
The reason why it’s often so expensive for dealers to source vehicles to sell is because you often need to compete with multiple other buyers. The key to sourcing vehicles at a cheaper price is to use methods that avoid competing bidders.
One of the best and cheapest ways for your dealership to source vehicles to sell is by reaching out to your past customers to see if they are or know anyone who is looking to sell their vehicle. If they know someone, they may be willing to help you out as you have already built a relationship with them in the past.
The benefit of reaching out to your past customers to try to purchase vehicles is you avoid competing with other buyers which will ultimately reduce your vehicle acquisition costs!
2. Condense Vehicle Advertising
Vehicle advertising has and always will be one of the most important expenses for Motor Dealerships around the world. Without vehicle advertising, how will you generate leads to sell your vehicles to? Another good way to reduce expenses at your dealership in 2023 is to condense your advertising to only a select few classifieds.
Look into your dealerships reporting and find out what advertisers are providing a strong return on your investment and what advertisers are not. You want to see total lead numbers produced by each advertiser you use and more importantly how many of those generated leads convert into a full paying customer. Once you understand who is providing good value, only send your vehicles to them.
Condensing your advertising to only a select few advertisers can save your dealership thousands every year!
3. Reduce Staff
Staff are an important part of every business, but staff are expensive. In a challenging environment it is important that your dealership only employs the required number of staff.
Your dealership doesn’t want to be paying staff that are not required. It will set your dealership back and reduce profitability. Get together with your stakeholders and identify what staff you need and what staff you don’t.
4. Automate Processes
Believe it or not one of the biggest expenses for businesses around the world is administration. You might not see a numerical loss but performing administration tasks will cost you time and potentially sales.
One of the best ways to reduce costs at your dealership in 2023 is to automate your daily processes using an industry specific Dealer Management Software. Using a Dealer Management Software like EasyCars, dealers can automate many everyday administration tasks like Stock Management, Advertising, VAT, and Business Reporting. The benefit of automating your processes using a DMS is it will give you back more time to focus on closing sales and growing the dealership.
5. Shop Around
Utilities prices are going through the roof! That doesn’t mean your dealership need to sit there and take price rise after price rise. To ensure you are getting the best deal on your utilities it is important that your dealership constantly shops around for better deals.
Your dealership should look to make it standard process to see what other providers are offering every month and switching to a cheaper provider if necessary. Shopping around for a better deal on your utilities can save your dealership thousands annually!
With costs continuing to rise it is important that your dealership looks for faster and cheaper ways of doing business. The 5 examples presented above are a few good ways Motor Dealers in the UAE can reduce costs in 2023.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.
EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.
To learn more about EasyCars or to arrange a no-obligation free demo of the software, please submit the form below.