You’ve got a strong network of dealerships, your products or services are only getting better, and the feedback from consumers is as good as it’s always been. So why are your sales slipping?

A prolonged dip in sales can be one of the most concerning things in the automotive industry, especially when you can’t place your finger on why it is happening. 

But in the dealership world, there are often three key reasons why sales targets are not being reached. With this in mind, we’re going to look at the three most common reasons and what you can do to sort out the problem:

Reason: Your Dealers Are Not Incentivised

Just because you’ve worked hard to form a dealership network, that doesn’t mean it’s going to give you everything you want in return. Making the most out of your investment is a long process, and it requires incentive strategies to keep every dealer on your level. 

One of the biggest reasons why sales start slipping is because, quite simply, dealerships are not incentivized enough to push the tide in your favor.

Solution: Invest In An Incentive Programme

So you need to do everything you can to incentivize them. This starts with a strong dealership incentive program, something that can drive sales and empower dealer principals with all the tools that they need to sell. 

With an incentive program, you can also track the performance of individual teams while rewarding them for choosing your products over your competitors – click here for more information.

Reason: Your Communication Is Off

Another key reason why your dealership sales might be slipping is a lack of strong communication. This happens a lot when it comes to a large network – for practicality, ease, and efficiency, information is being given in one communication. 

But dealers are busy, and long communication pieces can easily be skimmed over or not read at all in order to save time. This then means your important information is not actually being communicated. 

Solution: Cut Down The Word Count And Personalise

The best way to avoid this is to first cut down on word count. As mentioned before, dealerships are busy, and they may not have time to trawl through long communication pieces that might include information that is not specifically important to them. 

As well as this, you should make sure you personalize your messages and communicate directly with dealers. If you have all the key points that are relevant to them wrapped up in a neat, short communication piece, then it is far more likely to be absorbed.

Reason: You’re Being Cannibalised

Another common reason for low sales in the automotive industry: cannibalization. This occurs when a company releases a new product that displaces an existing one or makes it irrelevant. 

It can also occur when competitors in the area are selling a similar product and is reducing purchases of yours. 

Solution: Get On The Ground

If you notice that your sales are dipping, then one of the first things you should do is go to the areas where sales are low and assess the situation for yourself – do not rely on communication feeds with dealers. Take your own initiative. If you get on the ground, then you can get a good outlook on the area and any new competitors who might be drawing away your sales. 

As well as this, you can use it as a way to connect with local consumers and get an indication of why certain products might not be doing well. With large dealership networks, it’s always important to stay in the loop and make your own assessments if you want to continue growing your sales.

Richard is an experienced tech journalist and blogger who is passionate about new and emerging technologies. He provides insightful and engaging content for Connection Cafe and is committed to staying up-to-date on the latest trends and developments.