Dealership gross profits reached record levels during COVID, but have recently come under some pressure. Below, see some data from Haig Partners and a list of ways we believe dealerships can empower sales & finance teams to close EV deals at higher gross margins.

While not currently broken out between ICE-Gross and EV-Gross, dealerships have spoken out about needing to heavily discount EVs in some instances in order to reduce days’ supply and move electric units.

At Lectrium, we work with our dealer partners to build value in EVs for their website visitors, and in-person shoppers. Ideally a great EV dealership will be able to move electric units quickly, while protecting front-end and back-end gross margins.

Tell us more about your EV inventory!

Protect your EV Gross Profits 💪

Here is list of ways we believe dealerships can attract more EV buyers and empower sales & finance teams to close EV deals at higher gross margins.

1) Enhance customer education around the benefits and total cost savings of EV ownership

Well-informed customers are more likely to see the value in an EV and pay a premium price. One easy way to educate your customers is through digital marketing tools, such as Lectrium’s badges, which help car shoppers see the financial savings available for each EV and PHEV in your inventory. From federal tax incentives, state rebates to fuel cost savings, VDP tools such as the
EV Savings Badge, provide a simple and interactive way for customers to see the financial benefits, without you sacrificing gross.

For example, a sales manager or F&I manager can explain to an EV buyer how charging with electricity saves on fuel costs compared to filling up a gas tank. Electricity is much cheaper in every state and our tool helps explain this.

2) Better sales trainings for staff

Not only do customers need better EV education, but sales teams also need to be equipped with in-depth knowledge about EV technology, features, and benefits which differ from traditional vehicles. Training should focus on effectively communicating the long-term cost savings, convenience, and environmental benefits of EVs, helping salespeople build value and justify premium pricing.

Lectrium provides training sessions for sales teams to effectively integrate our tools into their EV sales conversations.
Book a meeting with us to learn more about these trainings, and how we can help.

3) Add F&I Products for EVs

Consider adding F&I products specifically for EVs, such as extended warranties on batteries, coverage for charging equipment, or gap insurance to provide peace of mind for customers, while increasing your profitability per transaction.

Ultimately, there are a higher percentage of sales and lease deals happening in EVs right now, and “the back office may also find that consumers are more willing to add on various F&I products, such as extended service contracts.” -
McKinsey

4) Bundle service packages for EVs

Find your “EV Partners” and offer bundled service packages specifically tailored for EV owners, such as charging station installations, charging credits, battery maintenance plans, and more. Thinking creatively and bundling service packages like these can add value for customers (especially new EV owners!) while generating additional revenue streams.

There are dozens of EV companies out there doing cool things and wanting to help you increase your margins. Do your research and find the partners that will build the most value for your business!

While the EV market has been tough to navigate the last couple of years, dealerships have ways of effectively maximizing gross profit on EVs and positioning themselves as leaders in this evolving landscape. The time is now. 🚀

In case you missed it 👀

Our newest tool, the EV Range Map, helps dealerships overcome customer ‘range anxiety’ right from their website. Add this tool on your VDPs so that online customers can see how far each EV and PHEV in your inventory can travel on one single charge. Better yet, have your sales teams also use this tool during their sales conversations in-store for a better customer experience!

Check it out for yourself:

• Mark Miller Subaru
• The BMW Store of Cincinnati
• PHEV Example

Get a demo of the EV Range Map 📍

Got questions? Just reply to this email, or reach out directly to our CEO, Peter Barba, at peter@lectrium.io 📫