Growing an organization during a recession can be difficult. Whilst it seems the economy could be recovering, it is inevitable that there are some tough times ahead. However, cutting costs is not necessarily the answer.
Whilst many organizations in any business sector are offering discounts and coupons, it is thought that it could have long-term damaging effects on those organizations. Customers can expect ‘cheaper’ services as a result, and with lower profit margins, the focus will be on competitive pricing rather than quality.
If your dealership is about quality and not price, then this is particularly important. Price discounts can result in a damaged brand in the long term as customers perceive it in a way that was not intended. If a dealership offering quality cars begins to offer extreme discounts, and as a result has to cut back on quality being delivered in service, then the overall service standards will decline, causing fewer sales, especially post-recession.
Although some customers are seeking a bargain, a recent survey conducted by Carlyle Finance, one of the leading independent car finance organizations in the UK proved that customers are seeking a dealership that is transparent, helpful, and friendly. By missing out on these qualities and focusing on low-cost cars, you could be creating long-term damage.
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Carlyle Finance offers competitive prices in the car finance market in the UK, yet its focus is importantly on delivering quality to its customers. It receives an average of 8.5 out of ten for its service standards, and the monthly survey proves that dealerships are seeking support, friendliness, and encouragement. This is encouraging that despite the decline in customers purchasing vehicles during the economic downturn, quality is still playing a large role and this is the case in many business sectors, and quality should never be excluded if this is central to your business proposition.