How to Deal With the Automotive Industry’s Dominance of Dealer Management Software

Automotive LEDs image 4994994

The automotive industry has long dominated the dealership management software(DMS) space. This has resulted in higher costs, confusing interfaces, and overall poor user experiences for dealers involved in other industries, such as Powersports, marine, and trailers. However, there are ways to deal with this issue. 

The first step is to understand why the automotive industry dominates the dealership management software market. The main reason is that the automotive industry was an early adopter of computerized dealer management systems. These systems were designed for the needs of the automotive industry and were built on legacy systems that were specific to that industry. As a result, other industries have had to adapt their own business processes to fit within the confines of these legacy systems, which has led to higher costs and confusion.

Which brings us to a very obvious question- what is a dealership management software system (DMS)? 

A dealership management software system allows dealers to manage the entire business through a single system, enabling business owners to follow all the transactions and see the whole picture of the daily functions. A dealership software system can manage inventory, maintain invoices, track leads, view the service history, and so much more. This is why picking the right system can be tricky.  One critical aspect that significantly contributes to the seamless operation of a dealership is the management of dealership supplies.

Now that we defined what a DMS is the second step and one of the most important choices is to decide if you want a system that is hosted in the cloud or on a local server. Cloud-based systems are typically much more affordable than on-premise systems because you don’t have to pay for things like hardware, maintenance, and installation. In addition, cloud-based systems are typically easier to use and more user-friendly than on-premise systems. 

Once you’ve figured out where your system is hosted you’ll be able to narrow down your choices as you look for a management software solution that is designed specifically for your industry. There are a number of options out there, but it’s important to find one that fits your specific needs. Some solutions are more comprehensive than others, so it’s important to find one that has all the features you need without being overloaded with unnecessary bells and whistles. Remember even if you don’t use those features you still have to pay for them. In addition, you’ll want to find a solution that is easy to use and doesn’t require a lot of training for your employees.

If you talk to managers from independent dealerships in Powersports, marine, and trailer industries, they understand the potential advantages it can bring to their business. These systems enable the dealership to perform daily financial transactions, schedule service jobs, and order parts as needed. Dealership management software has become a must because it combines all the tools business owners need on a specific platform. The fact that dealers can perform all these operations in one place makes it easier for them to run their businesses. Hence, dealers don’t have to log in for individual or specific solutions. 

Interesting Related Article: “7 Lead Management Software Solutions to Help You Capture More Leads