On Being Prepared for the Inevitable Downturn: This is The 'Party Doesn't Last Forever' Edition.
📈Used and New Car prices and profits skyrocketed to unprecedented levels since Q3 2022.
💲Dealerships have raked in previously unfathomable increases, crushing the last several years of competition and margin compression.
👉Many, if not most, Dealerships had pivoted to leaning heavily on their Fixed Operations teams to carry them.
When this massive shift occurred, very quickly Dealers cut spending and focus on #Service and their #Absorption Rate while they took advantage of the pressing demand for their vehicles.
👉 Supplies were low.
👉 Chip shortages were rampant
👉 Desire and demand escalated abruptly
👉 Consumers added or replaced vehicles resulting from Pandemic's effect on their travels.
❌✈❌ This included their ability to travel, undesirability of public transport and personal enjoyment in an era where the radius for vacation travel tightened.
😲 Marketing budgets were slashed,
😰 Focus on Fixed Ops moved back to auto-pilot.
What has been lost?
✔ A strategy for the inevitable shift back towards the reopening of supply and the consumer's ability to negotiate once again, reigniting competitive threats.
✔ We are also poised to suffer the consequences of these high loans and negative equity starting in the next 12 months.
Simultaneously, this could result in breaking the banks and dealership profitability with consumers unable to carry the consequences of the highest payment burden ever recorded.
🎯 We must remember the past in order to mindfully, realistically prepare for the future,
⭐ We can help you with a proactive, strategic solutions and customized options to keep you and your team aligned to new objectives that include success metrics and profitability positions.
🎯 Our specialty is mid-sized groups with 5-50 rooftops.
🎯 We support a wide-range of Automotive Support teams including #MarTech, #FinTech, #Agencies #OEMs #Marketing #Saas among others
🌟 We make it easy to start with a complimentary introductory call with your leadership team.
Foster Strategies Group ⭐⭐⭐⭐⭐
We Help Your Automotive Business Perform at Its Highest Potential with Our Customized Solutions.
#Automotive #Consulting #Strategy #BusinessStrategy #PeakPerformance #Sales #Service
#BetterTogether #Marketing
