Do you remember the first time you heard about Uber?
It’s one of the more prominent examples of a disruptive business model that has turned an industry (in this case, taxi cabs) upside down and redefined how we go about our day-to-day lives.
Another four-letter word is now on the rise and any auto dealership leader must not only face it, but embrace its effect on their operations: Turo, a communal car-service app that is essentially an Airbnb for cars, particularly high-end models.
With the growing popularity of mobile auto repair businesses, dealerships’ profit margins are being threatened. If you are a dealership owner and you have a service department, then you know that is where you cover most of your operating costs with a gross profit that is upwards of 60% or 70%.
Those huge numbers may already be in your rear-view mirror, though. Somebody buying a Porsche and only allowing a franchised dealership to work on their prized possession—that era is over.
There are many small to mid-size independent shops whose sole focus is convincing your clients that their Porsches can receive the same high-quality care that you provide, but at a significantly lower cost.
Every quick-lube shop is obviously not an imminent threat to your survival. However, it’s not enough to acknowledge that your clients are busy people who place a premium value on their time. What are you doing about it?
At minimum, much along the lines of Turo, offer a concierge pick-up/drop-off service that comes with a loaner car that allows them to go about their day in seamless fashion.