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Deciding how much attention that one should pay to competitors is an age old problem and one that comes with a lot of conflictual opinions. Car dealerships obviously need to have an idea of what others are doing in their area. But being obsessed by the competition is a very poor idea that could lead to serious problems. Let’s take a closer look at why you don’t want to pay too much attention to what your competitors are doing.

Don’t Be Reactive, Be Proactive

At the top of the list for why you don’t want to overly obsess with what your competitors are doing is that you fail to innovate. If you want to get ahead of your competitors, then you need to keep offering more than they are, pure and simple.

If you are constantly trying to stay ahead of your competitors then that by definition means that you are in a reactive instead of a proactive posture. Dealerships looking to achieve the best results possible want to be proactively innovating and not playing catch up and “thinking about the other guy.” You want the “other guy” thinking about you!

Think About the Consumer, Not Your Competing Dealerships

When you are paying too much attention to your competitors, you are also not focusing on your consumers and how to get them into the showroom. Perhaps, your competitors are taking steps to drive customers that you are not. If that's the case, that is fine and there is nothing wrong with noting such facts and adjusting your gameplay. But being obsessed with competitors is a different story!

The most important marketing decisions that you make are those that pertain to the consumer. What does the consumer want? How can you best deliver it to him or her? What steps can you take to make your dealership better, more inviting, warmer and more helpful? The list goes on and on. Obsessing about other dealerships in the area means that your obsession is misdirected; your obsession should always be with your customer!

Keep an Eye on the Other Guy, But Not a Constant Eye!

By looking to the needs of your prospective customers and how to turn leads into new customers, you are directly focused on building your dealership and generating more sales. This is where your focus should ultimately be.

None of this is to state that you should ignore the competition, far from it. Keeping an eye on the competition is vastly different from keeping a constant eye on the competition. Worry about bringing more people into your showroom and less on what the guy across the street (or on the other side of town) is or is not doing.

David Farmer 
CEO @ intice
intice, Inc. 

Views: 66


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