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 NEWS AND EVENTS 
 BENISH GPS 
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28 April

HOW DO AUTO DEALERS CAN INCREASE THEIR PROFIT DURING THE CRISIS?

Ukrainian automarket is in a serious stagnation. And despite the fact that new cars sales  increased in 2016 compared to 2015 by almost 40% according to statistics of AUTO-Consulting, and continue to grow, the scale of the market is far from what it was 5-7 years ago.

In order to support sales in any way, importers and dealers are forced to sacrifice their own profits. And if we consider that even in the growing market, the sales margin for mass-market cars does not exceed 3-5% and for premium cars - 6-7%, now, when buyers have to be constantly attracted by discounts, various bonuses and loyalty programs, almost all car dealers are balancing about "zero".

The tangible growth of sales of new cars, according to experts, won’t happen earlier 2019. But it doesn’t mean that even in the current situation, dealers can’t earn money and increase profit. Acoording to the revenue structure analysis, direct cars sales generate only 20-30% of turnover, and 70% of income is brought by selling additional equipment and car service stations.

Of course, selling "adds" in a crisis is also very difficult. Especially when it comes to spare parts and accessories that are not vital to the car owner. Nevertheless, if the dealer can offer the driver the equipment that he really needs, he will surely receive an inflow of new customers and growth of revenue. To achieve this, dealers need to shift the emphasis in communication with customers.

For example, propose the installation of a modern, functional and, most importantly, reliable anti-theft system, which is a necessary condition for the comfortable and safe operation with the car. And the dealer has strong arguments that will convince the buyer to purchase an alarm system along with the purchase of the car. First, the driver directly from the salon receives a fully equipped car, which is protected from attack by intruders. Secondly, the dealer will implement a competent installation and configuration of the system, which will not lead to a loss of warranty. Thirdly, if the car is issued on credit, the bank will give a loan only if the car is equipped with an alarm system.

"The main advantage for car dealers is that the satellite anti-theft system Benish GUARD is a high-margin product. And the dealer earns not only on the sale of the alarm itself, but also on its installation", –   says Andrey Harabara, director of development of the dealer network of Benish GPS.

Yes, many cars are already equipped with factory alarms. But don’t forget that their effectiveness against the average hijacker is extremely low. As well as budget systems, which are often chosen by car owners, seeking to save money. But presence of such a system as Benish GUARD will not only reduce the risks of hijacking to almost zero, but also will allow the dealer to gain the loyalty of a client who will serve his car for years.