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2. FIXED OPS PRICING IS ON THE RISE
Prices on parts and labor are increasing, in some cases, faster than the national inflation rate, impacting
dealerships' F&I and service departments.
TIP Knowing parts pricing increases are incoming and that these costs will be passed on to consumers,
some customers may believe they're being price gouged in the service lane. Get ahead of these
conversations with clear and transparent messaging.
If prices rise due to increased parts or service costs, communicate this to your customers. Transparency
is key. Instead of being afraid to compete on cost, messaging should focus on your service department's
advanced knowledge and abilities compared to the more generalized service shop down the road.
3. TO ACHIEVE SUSTAINABLE SUCCESS THROUGH 2022 – REGARDLESS OF WHAT LIES AHEAD
According to S&P Global Mobility, production in the second half of 2022 is expected to result in SAAR
rates that average 14.69 million units amid continued semiconductor challenges and ongoing supply
chain, logistics and worker related issues, according to S&P Global Mobility.
While underlying demand is currently stronger than
U.S. sales results to date, pent-up demand remains
under threat from inflation and other macroeconomic
pressures. In Q2, U.S. auto sales began to cool.
According to NADA, March 2022's SAAR totaled 13.3
million units, down from 14 million units in February
and 24.4% from last March's SAAR of 17.6 million.
TIP While sales prices are high, you can't discount the value of a great customer experience. Remembering
trust is as important to buyers as pricing, start by setting clear expectations early on through proactive
customer communications. Ensure your dealership customer experience meets and exceeds buyer
expectations to help offset any sticker shock with a white-glove sales experience.
While historic profits have some dealers pumping the brakes on their marketing, declining consumer
sentiment and increased costs emphasize why it's so critical that dealers maintain ongoing customer
communication to achieve sustainable success.
Interested in learning how Mastermind can help your dealership maximize its marketing efforts and
profitability in 2022? Contact us for a free demo.
› Tires: +16%
› Vehicle parts and
equipment: +14%
› Vehicle maintenance
and service: +3.6%
› Vehicle repair: +5.5%
› New and used vehicles:
+22%
› U.S. inflation (CPI): +8.5%
Between March 2021 and March 2022
U.S. Bureau of Labor Statistics, Automotive News
