By Tom Gregg,
Founder and CEO,
Vehicle Acquisition Network
The Power of Strategy in Dealership Success
The most successful dealerships aren't necessarily those with the flashiest showrooms or the largest advertising budgets. Instead, success often hinges on the adoption of innovative strategies. One transformative strategy is private-party acquisition.
Building Relationships Beyond Transactions
Private-party acquisitions are about more than just transactions; they're about relationships. When a dealership acquires a car from a private seller, it's not just about adding to its inventory but creating a connection. When nurtured correctly, this connection can lead to a bond far stronger than any traditional sales relationship.
The Unique Opportunity of Private Sales
Consider this scenario: a customer walks into a dealership, not with the intention of purchasing a new car, but to sell their old one. This presents a unique opportunity for both the seller and the dealership. The seller seeks a fair price and a hassle-free experience, while the dealership has a chance to make an impression. By offering a transparent, fair, and smooth process, the dealership can turn this one-time seller into a lifelong customer.
The Waterfall Effect of Satisfied Sellers
Here's where things really start to flow, as the benefits of private-party acquisitions extend even further. A satisfied seller often becomes a brand ambassador. They'll share their positive experience with friends and family, leading to a cascade of word-of-mouth referrals. This is the "Waterfall Effect" in action. One satisfied customer can lead to many more, creating a ripple effect that can significantly boost a dealership's reputation and customer base.
Personalization: The Cornerstone of Modern Sales
Personalization is a cornerstone of this strategy. Just as luxury car buyers expect a vehicle tailored to their preferences, private sellers anticipate a sales experience that caters to their needs. By offering personalized interactions, dealerships can ensure that sellers feel valued and understood. This not only increases the likelihood of a successful transaction but also lays the groundwork for a long-term relationship.
Embracing the Future of Dealership Strategies
In the dynamic landscape, it's essential to look beyond traditional sales strategies. Private-party acquisitions offer a unique opportunity to build genuine relationships, drive word-of-mouth referrals, and establish a loyal customer base. By focusing on these connections and offering tailored experiences, dealerships can distinguish themselves in a competitive market and pave the way for long-term success.
The 5 Process Pillars of a Perfect Private Vehicle Acquisition Strategy
At Digital Dealer Las Vegas 2023, I'll cover vehicle acquisition strategy during my session, "The 5 Process Pillars of a Perfect Private Vehicle Acquisition Strategy," with David Long from Hansel Auto Group. Our session will help you to 1) build the right foundations for your dealership’s buy-center, 2) give you tried and trusted outreach methods, and 3) learn how to stay on top of market fluctuations and make the right offers to sellers.
Tom Gregg is the founder and CEO of the Vehicle Acquisition Network based in Chicago, Illinois. A true 'student of the industry,' Tom's automotive experience began as a porter and evolved through several management and directorial roles at dealerships in the Midwest. His entrepreneurial spirit soon outgrew his dealership journey, and he found himself focused on software development that, in turn, would be a benefit to dealerships across the country. A strong believer in mindfulness and wellness, Tom is an accomplished triathlete and has competed at the highest level of the sport in the Ironman Triathlon. Tom brings this quiet confidence and mentorship to his entire team at VAN, striving for a perfect balance of team culture, smart software development, and constant learning.