Running a car dealership is a rewarding experience. But, if it doesn’t get done right, it can turn into an expensive enterprise! That’s why it makes sense to review your expenses and cut costs where possible.
The sad truth is some car dealers are complacent when it comes to their operating costs. Sooner or later, they can end up facing financial ruin. The following strategies will help you to lower your operating costs.
Run a greener dealership
Energy bills represent some of the highest costs to any dealership. Especially if you leave the lights on at your showroom overnight! It makes sense to invest in energy-saving measures. For example, LED lighting is bright but uses less power than CFL bulbs. If you’ve got the roof space, consider investing in solar panels to generate electricity.
Run regular reviews of procurement procedures
It always makes sense to have a network of suppliers. These days, loyalty shouldn’t keep you with one specific supplier. Instead, you should only use companies that offer the best deals for you at the time.
Outsource valeting work
Believe it or not, it’s cheaper to pay a third party to give your cars that showroom shine! That’s because you lower your staff overheads and have a more healthy balance sheet.
Contact several brokers for motor trade insurance renewals
Some car dealers are lazy! They stick with the same brokers and providers of motor trade insurance. As you know, the cost of insurance changes each year. And so too do your needs.
Some dealers don’t know the difference between the two types of motor trade policies. Check out this infographic below to learn more:
Infographic Credit To trade insurance