3 Reasons to Not Stop Marketing During Inventory Shortages

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1. Demand for new vehicles is still high. As chip shortages tightened dealer inventories, the U.S. economy entered recovery and customers began returning to market. This customer demand was further intensified by buyers' concerns over vehicle availability. This kind of demand mixed with limited inventory means dealerships are in a unique position to seek higher margins – with less customer negotiating – if they can reach and engage prospects before the competition. But for dealers facing new vehicle shortages or unable to stock in-demand models, this requires a strategic approach. Consider marketing your less popular new models with especially attractive offers, such as offering aggressive trade-in values. By targeting drivers of in-demand models with these types of offers, dealers can be more competitive with their pricing while promoting profitability by flipping customer trades as future pre-owned sales. 3 Reasons to Not Stop Marketing During Inventory Shortages As ongoing chip shortages result in historically low new vehicle inventories, dealers around the country are faring vastly different depending on their brand – and their approach. While some automakers are undoubtedly feeling the impacts of chip shortages more than others, for dealers who have taken a data-driven approach to maximizing their available inventory and customer portfolio, 2021 has been a year of record-breaking sales. "The SAAR for March 2021 was 17.75 million units – the second-highest March of all time. " NADA, March Market Beat U.S. new light vehicle registrations reached a 10-year high of 1.64 million in March 2021. Regardless of their daily supply, to capitalize on customer trends and secure sustainable, future success, it's critical dealers don't stop marketing or keeping open communication with their customers during inventory shortages. Why?

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