A recent report revealed that Manchester is very strong position to ride out the political and economic storm presented by Brexit, whether or not the country ultimately leaves with a deal or not.
The recent rise in profits for car dealerships operating in the city is evidence of the fact that the city is definitely weathering the storm better than many other parts of the UK. This also indicates that there is ground for further expansion in the local car dealership industry.
The Prime Factors That Could Make or Break a New Car Dealership
Although the car market in Manchester is still favourable, it’s important to understand that the proper steps in setting up a new business will still be necessary, because now is definitely not the time to splurge or skimp while setting up a new car dealership.
Big Investments are to be Avoided at the Moment
A lot of things may change in the coming months, so even though the car market is doing well at the moment, big investments are to be avoided for the time being. Getting started with caution is key to remaining valid now and after the separation from EU.
Employment Should be Kept at a Minimum
The wage requirements could change after Brexit even in Manchester, which is why it’s best to keep employee strength at a minimum. Instead, relying on a small but efficient workforce, as well as training the new workforce to be more productive, is likely a better use of resources at the moment.
Additionally, a small, well-paid workforce is better than a larger, ill-paid one, from both the perspective of the owner and the employees.
Overheads Should be Kept as Low as Possible
During times of economic uncertainty it’s best to keep overheads as low as possible, which will make it easier for the business to weather a recession if one does arise.
In order to reduce the business’s costs it’s important to shop around for better deals on insurance, utilities and other unavoidable overheads, which could the company a significant amount of money in the long run. Quotezone.co.uk, for instance, is a price comparison site that can help car dealerships compare quotes for motor trade insurance, making it more likely that they’ll find a suitable policy at a cheap price.
A Dynamic Business Plan is Recommended and Can be Highly Useful
Any new car dealerships should be ready to make changes in the kind of cars they sell, depending on what changes next month, if anything at all. As of now, mid-rangers are selling well in Manchester, but getting into any long-term contract with only one manufacturer is not advisable, considering the potential for change in the market demand. Short-term contracts allow for flexibility and rapid changes, if and when required.
Enriching Customer Experience is of Paramount Importance
It has been noticed as a pattern that when uncertainty disrupts business, employees often become lax in their customer service, which is something that can be a breaking fault for any new car dealership business.
A large part of car salesmanship is the ability to make a potential customer feel good about their decision either way. Even if a sale is not made at that point of time, it is possible that they will come back to that very dealership to buy a car when they are more financially able. A single improper customer conduct can lead to a loss of sale and reputation.
Business owners should be more vigilant towards keeping that from happening, which is easier to do with a smaller workforce.
Much of what is mentioned here isn’t that different from what would be applicable pretty much anywhere else in the UK, but what sets Manchester apart from the rest of the major cities, such as London itself, is the fact that it is mostly unaffected by the upcoming departure from the EU.
There are multiple reasons for inhabitants of Manchester to not be a part of the panic and stay more focused on the developments that are happening within the metropolitan. Therefore, the opportunity for profitable car dealerships is also quite abundant as a natural result of that. Post Brexit, most estimations indicate that the business class in Manchester will be in an even better position to handle the changes.