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Extra Dealership Space

AI Summary

# Summary A newer dealership manager seeks advice on repurposing an unused building with 6 offices and a showroom. The thread explores two main approaches: renting the space to an external business like a custom shop (which could provide revenue with minimal management burden) versus converting it into an expanded Business Development Center to better handle their 100 monthly internet leads and improve sales appointment shows. The key insight is that the dealership's real opportunity cost may not be rental income, but rather the lost sales potential from inadequately serviced leads—suggesting an internal internet sales department could drive more value than leasing the space to an outside tenant.

tmcgeehon

Green Pea
Nov 17, 2011
4
1
First Name
Tom
Hey all,

I'm a little new to the forums and just started in the business in June last year. We have been progressively working to becoming more up to date with Social Media and the latest/greatest technology that is able to be implemented into our dealership. We also started using eLeads CRM to better track and analyze our customer data, along with providing a data mining capability for marketing purposes.

Now that you have an idea on what kind of path we are on, here's the current situation: we have an extra buidling that used to be our used car showcase building that is not currently in use. The building has 6 offices and a showroom that can hold 3 cars max. We are looking to utilize this space efficiently in any way possible that could be useful to either us or our customers.

We also have a Cafe area that is no longer in use, we are looking to also utilize this area to provide something for our customers other than the cafe services due to the costs. Here is a picture:
CAFE.jpg

Once again, we are looking to fully utilize the extra space on hand to provide something for our customers with little to no cost to the dealership. We are a tech savvy, innovative dealership capable of implementing ideas of all kinds.

Any feedback is much appreciated!
 
Rent it out. Most all companies FAIL at ancillary businesses because they underestimate the skill needed to manage it. Example: Look at Hotels getting out of the Restaurant biz.

Idea: Rent it out to a Automotive custom shop.
If your brand(s) has an accessories sales & distribution system (ala GM), consider working that in to the merchandising footprint too.

Idea: Rent it out to a Power Sports shop (motorcycle, boats, etc...)


I use to own a big automotive custom shop. Renting space in a giant auto complex is smart business (for the custom shop owner). Custom shop owner and auto store can enjoy some sales synergy (if they're smart).
 
Joe, thanks for the advice, that is a great idea that could provide more revenue to our dealership.

JQuinn, we have a BDC, but there are only 3-4 reps that take calls and set service appointments.

Thanks for the quick reply.

How many internet leads do you get a month, and how are they handled?

Some math: what's it worth to have 40-60 Sales Appointment shows per person?
 
How many internet leads do you get a month, and how are they handled?

Some math: what's it worth to have 40-60 Sales Appointment shows per person?

We currently get around 100 leads from our website. There are a few salesmen responding to these leads. Are you proposing an internet sales department?

That was one of my first thoughts, but my boss is not ready to commit to a true internet sales department. I think part of it is because of the different pay structure associated with it combatting our current structure. I had to convince him to release the leads to the salesmen because the response times were so horrible and people were not being responded to.
 

✨ AI Highlights

# Summary A newer dealership manager seeks advice on repurposing an unused building with 6 offices and a showroom. The thread explores two main approaches: renting the space to an external business like a custom shop (which could provide revenue with minimal management burden) versus converting it into an expanded Business Development Center to better handle their 100 monthly internet leads and improve sales appointment shows. The key insight is that the dealership's real opportunity cost may not be rental income, but rather the lost sales potential from inadequately serviced leads—suggesting an internal internet sales department could drive more value than leasing the space to an outside tenant.

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