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Today, dealerships face a pressing dilemma: How to prepare for sustainable growth as they enter a new, digital-forward automotive industry. The answer may be in transitioning from a traditional variable ops focus to a more fixed ops-oriented approach, where parts and service are empowered to drive more revenue and cover 100% of operating costs.

As consumers increasingly favor online shopping and vehicles become more sophisticated, dealers must recognize the need to replace antiquated business strategies to protect their revenue streams. The day when customers expect to buy a vehicle in a few clicks, rather than shop in person and endure the uncomfortable experience of haggling with a salesperson, has arrived. With it comes a call to arm the other side of your dealership with modern tools and a plan for profitable growth, along with a strategy to address rising operational costs. 

It’s more important than ever to maximize your dealership’s absorption rate—it’s also more attainable. There’s massive revenue potential in fixed ops that’s largely untapped. Mining this opportunity through modernization is the only way to safeguard the future of your business in an industry on the cusp of transformation. Yet, this goal remains a major challenge for many dealerships, with the average U.S. dealership absorption rate hovering at just 57%.