Automotive Marketing Facts

Automotive Marketing Facts: Regional Dealer Groups

By September 29, 2015 No Comments
Regional Dealer Groups preview

Regional Dealer Groups

TRANSCRIPT: My guest today is dealer group expert Maria Espinoza. Maria, we see a lot of regional dealer groups forming from two stores to 20, 30 or more. What are some of the advantages? One of the advantages is shared learning and the ability to scale the results. When something works in that market the whole group can know about it. Many dealer groups are eager to experiment with advanced product or service with one store. No one wants a failure, even a small one, but if it succeeds, that success can be multiplied many times over with more certainty and less risk. It’s hard for a single store to take risks. While the cost is the same for a single store within a dealer group the potential benefits are much higher. Even groups moving to a centralized model find it worth the expense and effort to test new products and concepts on one or two stores. Having all the stores in the same marketing eliminates or minimizes the uncertainty associated with market variation. Not all products and services operate the same way in every market and that’s a fact.