How to win the price war in dealership business?

It is said that one dealer’s loss is another dealer’s gain. This statement holds true for all the dealers engaged in RV, marine and trailer businesses in the city of Toledo. Due to globalization and computerization, there has been a massive surge in dealership business in recent times. It has given birth to cut-throat competition in the mentioned industries. So, a price war has started between different dealers. The basic idea is to provide identical products/ services at the lowest price possible. So, a rational consumer shall always opt for that dealer who is offering the service/product at the lowest price. Of course, here we are assuming that the quality of product/service is identical. In practical scenario, this may not be the case all the time and a customer may willingly pay slightly higher to derive the services out of a more reputed dealer. But goodwill is something which is not in one’s hands and can be built step by step over the years.

The basic notion behind waging the price-war is related to cost. If a dealer bears lower cost than another dealer, the former will be in a better position to affix lower prices. There are different ways to reduce cost. One effective way is to opt for the right kind of technology. The daily operations of accounting and financing can be extremely expensive if they are entirely allocated to man-power labor. Plus, there will always be a question mark over the accuracy of the financial statements. The manual worker can make mistakes. He may also be corrupt and may embezzle with funds. A software on the other hand will neither be erroneous nor will it be dishonest. Integrated Dealer Systems’ Dealer Management Software is a revolutionary tool for dealers of Toledo. Its in-built layout and design are such that all invoices are recorded and presented in an accurate manner. Since it removes chances of error and fraud, it helps in bringing down the cost.