The competitive landscape for automotive retail requires dealers to think even more about competition and growth. Some think they need to get bigger or get out; however, the bigger question is, what will it take to corner your market and fulfill your strategic vision?
In Houston, for example, it will require much more than in small-town America. From Haig’s perspective, Pete Theil shares that if the goal is to compete in competitive markets, 10 locations with a diversity of brands will provide you critical mass to be a one-stop shop for customers as a transportation provider. The ten most common brands cover about 75% of sales, and with 10 locations, you should be able to sell fifteen to twenty thousand cars a year, providing scale to compete against the national competitors. In addition, the scale will allow dealers to recruit specialists such as new and used sales trainers, F&I trainers, Fixed Ops Director, a marketing department, and a CFO. By hiring specialists, you can outperform your local dealer competitor and the big national brands in your market.
In this episode, Pete Theil with Haig Partners and The Rawls Group’s succession planner Champ Rawls discusses strategies for dealers to consider as they future-proof their business.