The second-hand car market is still riding on a big boom and after the difficulty of lockdown, it’s well-deserved. As sales continue to flourish, there are a few ways to make sure you maximise your profits and keep sales high. We’ve included a few top tips from industry experts to help you get the most out of your small business.
1. Embrace the digital world
One of the biggest tips from industry experts is to embrace the digital side of your business. Covid has caused a bit of a ‘technology boom’ when it comes to car shopping, with more small businesses jumping online to boost their sales.
There are plenty of potential customers out there who are now happy to view a car from the comfort of their own home, so it’s a good idea to reach them if you can. By building a website and putting your stock online, you’ll attract a much bigger audience compared to only having in-person showings.
New technology also comes with new ways of buying. Have a look at implementing a click-and-collect service, online quotes, finance calculators or live video viewings, so that you can build a customer base online as well as in-store.
2. Keep communication channels open
The best way to ensure leads are coming in is to keep your channels of communication open and active wherever you can. For smaller motor trade businesses, this can be as simple as sending out a bulletin update to show off your new stock, or sending a newsletter with any new offers you might have.
This also ties in with our earlier mention of technology. Although you’ve probably got a contact phone number, lots of customers will look for different ways to communicate with you, so it’s a good idea to have lots of different communication options. If you haven’t already, try getting an email address up and running, or set up social media sites like Facebook, Instagram or Twitter. Social media is also a great tool for exposure; you can post about the cars you have in stock and customers have another way to reach you if they have an enquiry – it’s a win/win!
3. Build solid foundations
If the pandemic has taught us one thing, it’s that businesses need a strong foundation to help them get through tough times. Having a good idea of your costs and finances is always a good place to start, as well as making sure you have a cash reserve in case the economy stumbles.
4. Chase all your leads
It’s one thing to keep communication channels open, but it’s another thing entirely to communicate with your customers. If you’ve got multiple ways for customers to contact you, the chances are that you’re going to get a lot of leads from many different places. Try and set aside the time to chase every lead, no matter whether it’s an online enquiry or a message on Facebook. Remember, not every lead will pull through and make a sale, but the more leads you chase, the higher the chance of shifting some stock.
5. Make sure you’ve got the right insurance in place
If you’re planning on changing anything about your current set-up, such as getting a click-and-collect service or doing home deliveries, make sure that you’ve got the right insurance in place beforehand. Depending on the changes you make, you’ll need to be sure that you’re covered in case something goes wrong. Always make sure your insurance policy is accurate and up to date – it’s one of the best ways to protect your small business.
To speak with an expert about your motor trade insurance needs, give us a ring on 0121 248 9300 or use our enquiry form below: