9:24 am, September 5, 2008
FUSSY manufacturers risk losing dealers, says a new report.
Brands which impose excessive standards, seemingly with little benefit, may suffer compared to those which balance what they ask of, and give to, dealers, says the latest NFDA Dealer Attitude Survey.
The issue has been reinforced by the tough trading conditions many are suffering. As NFDA director Sue Robinson said, ‘Dealers are looking at all aspects of their operations at present in order to maximize efficiencies.’
‘This includes the manufacturer requirements they must meet, and the services provided to them as a result of this partnership’
Generally, though, dealers are happy. 60 per cent of those polled said they were happy with how much control manufacturers exert, and 70 per cent liked the price, value and image of the product they represent.
However, little more than half were satisfied with the profitability of their franchise, and 54 per cent were satisfied with future sales targets.
Hence why many are looking carefully and the manufacturer-dealer balance. ‘Car dealers are operating in a challenging business environment, and are evaluating all aspects of their business, including the benefits of manufacturer partnerships,’ concluded Robinson.
