IS MOVING TO ONE TECHNOLOGY PARTNER RIGHT FOR YOUR STORE?
Dealerships have a lot of decisions to make on a daily basis regarding sales, staff, inventory and hundreds of other items, along with all the phone calls they receive and challenges that pop up during the day. Simplifying these daily challenges is key to a successful, lower-stress lifestyle for dealership management.
One way that dealership management can simplify is by working with the fewest number of vendors possible for their product and service needs. If you can get the “best in breed” from one vendor — it’s a win, win.
Benefits of a Single Vendor Approach Support — You have one call to make when things don’t go right. Admit it: We all want things to go right 100 percent of the time. Rest assured, however, that support will be needed at some point. It could a major issue — a system is down — or a more common concern — there is new content or updates needed — but having one call to make for service and support eliminates the need to find the phone number of each vendor for each issue that can come up throughout the day. You can completely eliminate the finger pointing that comes when two non-related systems are not working together properly.
Products — Synergistic product offerings are key to the future of car dealerships. Being able to share data between services and solutions in real time is paramount. This creates a comprehensive solution for dealer services. Having all systems work together provides for a consistent message to customers and an enhanced simplicity for dealership staff. Combining best of breed in a single vendor offering has a value beyond the visual in that it will also enhance the in home, out-of-home, or in-store experience for customers which, in turn, increases closing ratios and bottom-line profits.
Pricing — Working with a single vendor to maximize an investment in a comprehensive solution takes a mutual level of commitment. This allows both parties to manipulate the pricing and terms of a deal. Dealerships should expect front-end discounts in the way of additional services or lower costs when combining multiple synergistic products. Vendors appreciate the commitment and should be willing to sweeten a deal when there is more commitment from the dealer.
There are both pros and cons to consider when using a single vendor for multiple services.
Price and integration are obvious pros, but the cons aren’t so clear and can vary for each dealer. Integrated solutions may make support easier, but if the integration is based on acquisitions, then the various products may not work well together and may cause more headaches during a transition. If the products were all created by the same group, however,
this is not as much a concern.
Each dealership is unique, and their needs — based on management — are unique, as well. A rolled-up solution may not work when the dealer only needs a piece of the system and the costs aligned with those may be higher than the bundled pricing.
Every dealership is different. The one vendor system might work for some and be a disaster for others. That is why you must consider all the pros and cons that apply to your store before you make a decision on moving to or from one vendor to another.