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Welcome to the Monday Minute from our new sponsor, Jeff Podium.
Podium is a great product that helps you integrate AI into your lead management, so go check
them out.
Hey, the Monday Minute, though.
So, a quick reset to help you lead better to think clearer and build your dealership
with intention.
Before we get started, our Sunday newsletter, go back, review it because it lays out the
full theme for the week, and you've got some exercises to help you there.
The Monday Minute, this right here is the mindset.
The newsletter is the roadmap, so let's get this week going, Jeff, what we got?
So we're going to talk this week really about the basics, just super fundamental about choosing
the ride dealership model.
So it's one of the most important decisions you're going to make in your dealership, right?
And it doesn't have to be permanent.
I do know dealers that have moved from one model to the other, but basically too many
operators get caught up chasing what looks like profitable on paper rather than what
actually fits their market.
So that's kind of why sometimes we adapt based on their resources, like risk tolerance, and
honestly, sometimes just the phase of your life, right?
Like I got bored of patience and energy.
But the real truth is that there's no real best dealership model.
There's only the dealership model that fits you and fits your market.
So as an independent retail dealership, it gives you a lot of freedom to choose.
You have freedom for your inventory, you have a lot of freedom for your target market,
the credit profile, and in retail, you can really pivot quickly, right?
If you want to have one type of car, jump to another type of car, you can kind of shift
your business model or price point based on the market.
But it also means that you are more of a brand.
You're going to be competing on price.
You really have to put yourself out there.
A lot of marketing dollars.
Now, buy here, pay here, or lease here, pay here can be powerful in the right market also.
You're not just selling cars.
You're really selling and providing an opportunity for financing.
So you're selling your program or you're selling credit less so much the car.
But with that opportunity, obviously comes a lot of responsibility, a lot more risk.
Portfolio management, all the real and fun stuff that comes with buy here, pay here.
So before you kind of fall in love with whatever model, you really need to answer a couple of questions.
And those are going to be, what does your market look like?
Demographic, income, all those types of things.
Who am I serving?
Like, who do I want to be in bed with?
Who do I want my customers to be?
Prime, subprime, both.
And how much capital do I realistically have to operate?
So those are three key questions when you're looking at your business model.
Yeah, I mean, you got to do the market research because you just don't know.
You don't know what's already in your market if you're just getting into this.
Even if you're working another dealership, you may not have taken the time to go out
and really figure it out.
So do your market research and run the numbers, build a performance and see what happens there
because cash flow can kill you and it kill you before you even start,
especially if you don't have enough money to be there.
You know, be honest with yourself.
What's what's the risk that I'm willing to take on?
How much debt can I handle?
Because all of these take debt if you're not independently wealthy like Jeff.
So you need to make sure that you know what you're getting into.
How much stress are you willing to deal with?
How many employees are you willing to deal with?
And what's your time frame?
So before you do all this, make sure you do these exercises.
Absolutely.
So if you haven't already, go back, review the Monday minute,
review and the newsletter and make sure that you take the steps needed
and take some action this week.
If you're not receiving the newsletter, be sure you go to theindependentdealer.com and subscribe.
Yep, let's build it together, Jeff.
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