April 11, 2022

Adapt and Build: How to Future-Proof a BDC

NAC Blog
NAC Blog

Adapt and Build: How to Future-Proof a BDC

The ability to buy a car or schedule service in just a click has the automotive industry shifting. According to ABC News, 30% of new car sales in the U.S. were completed online.

With the rise of digital car buying services, a Business Development Center (BDC) can be an attractive option for dealerships to help enhance the customer experience. As the pandemic wanes, a BDC may be necessary to assist in driving traffic and revenue.

But how do you adapt a BDC for the future? Shawn Armorer, founder, and owner of BDC Alchemy, joins host Corey Smith to discuss successful BDC operations and goals. Keep on reading or listen to the full episode of Fixed Ops 5.

See into the Future: Adapting Your BDC

The BDC is the hub of dealership operations, from calling new leads and facilitating appointments—it's a system. And, in most dealerships, that system hasn't changed for decades.

But, over those years, there's been a focus on short-term results. So, according to Armorer, it's time to recalibrate and realign dealership BDCs. The good news: Long-term gains are achievable without having to tear down and rebuild. All dealerships must do is adapt to the changes.

How COVID Changed the Auto Industry

It’s no secret that vehicle supply and demand has shifted since the pandemic began. With the infamous chip shortage affecting the production of vehicles, the cost of new and pre-owned vehicles has increased.

According to data by the U.S. Bureau of Labor Statistics, the consumer price index for used cars and trucks has jumped by 40.5% from January 2021 to January 2022. So, with the increase the vehicle costs, dealerships have more opportunity to build a successful BDC and expand their operations.

Building a Team of BDC Leaders

With an increase in profits, what should dealerships do with that extra financial padding? Armorer suggests that dealerships should take the money and reinvest into training programs to create a strong BDC.

According to JMA Group, employee turnover sits at around 46% .By offering a laser-focused approach to development and training, dealers can retain their people.

But what about hiring? Should dealerships hire for the future or the immediate need? Armorer says, "The long game is to develop your employees. So, you must hire for the future."

Dealerships should place a focus on hiring those with a positive attitude and strong character. Great leaders are built, so offering opportunities for employees to grow is necessary.

The Takeaway

Now that we have covered how to build and adapt a BDC, how do you start? Armorer recommends that dealerships:

·        Care more about trajectory than month-to-month revenue. Success is a marathon, not a race.

·        Seek out professional help with your BDC and employee training.

·        Invest into employees and BDC training.

Want to get the latest industry insight from Fixed Ops 5? Then check out our YouTube channel for full video interviews. Tune into the podcast on Spotify, Apple Podcasts, or wherever you listen, so you never miss a new episode!

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