In today’s modern day and age, one thing impacts dealership value, something that’s “new” to even the most veteran RV dealers. Today, more now than ever, the tech stacks that power RV dealerships affect their value when heading towards a dealership buy-sell agreement.
From AI integration to RV service software, is your dealership 21st century-ready when it comes to technology that impacts dealership value? This guide will help you decide and strategize for a more tech-savvy future.
So, keep reading to learn more about the evolution of dealership technology, key investment areas affecting valuations, how to measure ROI, and challenges to consider for implementation. Plus, how RVBS can help prepare for and execute the optimal dealership buy-sell transaction for your business.
The Evolution of Dealership Technology
Looking ahead always helps to know (and appreciate) where the industry has come from. From the inception of RV dealerships, operations have progressed from manual pen-and-paper systems to basic DOS-based management systems and finally to advanced cloud-friendly platforms.
Today, dealerships benefit (and are expected to provide!) from various technology platforms that integrate nearly every aspect of the business. Unlike in the past, with a rise in competition, modern dealers are expected to maintain systems that provide seamless online-to-offline customer experiences, mobile-first communications, and real-time inventory management across multiple platforms.
If your dealership has yet to catch up with those around you, now’s the time, especially if you’re considering a future dealership buy-sell agreement. Next, we’ll cover the top technology areas and investments affecting dealership valuations the most in today’s market.
Key Technology Affecting Dealership Buy-Sell Valuation
Here are the top 4 key technology areas you should invest in to positively impact your future dealership buy-sell valuation.
Digital Retailing Platforms
The first piece of technology that can support the enhanced customer experience we spoke about already is a robust digital retailing platform. These solutions enable buyers to complete their entire purchase journey online, from virtual 360-degree walkthroughs of RV interiors to seamless financing applications and digital document signing.
By integrating F&I tools directly into the digital sales process, dealers streamline transactions while maximizing backend product penetration. This shows potential buyers or investors that your dealership supports market reach expansion and can offer better customer acquisition costs with targeted marketing than those dealerships without online platforms.
RV Dealer Software for Customer Relationship Management
RV dealership management software for customer relationships has also evolved. Over time, they’ve gone from essential contract management platforms to savvy customer engagement hubs. Today, the versions that increase the value of your dealership the most are those that can provide comprehensive lead tracking across multiple touchpoints while also automating marketing campaigns.
Even more, dealerships should seek out RV dealer software for CRM that offers integrated communication tools for seamless follow-up and engagement throughout the extended RV purchase cycle. Through advanced analytics, dealers can leverage customer data to identify high-value prospects, predict seasonal buying patterns, and maximize lifetime value through targeted service promotions and trade-in opportunities.
This proves to potential buyers your dealership comes with a data-driven and built-in approach that builds lasting relationships that extend well beyond the initial sale.
RV Service Software & Technology
It’s not just a robust service department that can help sell your dealership, but also the RV repair shop software and systems that power it. Systems that integrate modern platforms to streamline operations while enhancing customer satisfaction can improve the valuation of your business exponentially. The best systems combine:
- Online scheduling capabilities
- Digital inspection tools
- Documentation capabilities
- Photo and video uploads
Other features like predictive maintenance alerts also help service departments proactively engage customers, while increasing revenue seamlessly. Speaking of customer engagement, beyond the standard features, some RV service software will offer real-time communication portals, mobile payment options, and other features that help keep consumers informed throughout the repair process.
Inventory Management Solutions
Last but not least, a powerful inventory management solution has the potential to boost your dealership’s valuation. The most cutting-edge solutions available today leverage AI algorithms to optimize RV pricing based on real-time market data, seasonal trends, and local demand patterns. Many also seamlessly sync inventory across multiple listing sites, with features like automatic price adjustment to maintain competitiveness.
By integrating market intelligence with automated procurement tools, dealers can optimize their inventory mix and turn rates, ensuring the proper units are in stock at the right time to maximize profitability and minimize holding costs. This provides potential buyers the peace of mind that your systems are designed not only to drive market traffic but also to do so in a manner that handles fluctuations and optimal ROI.
Best Practices for Implementation
It’s not just investing in and installing the above technology pieces… it’s implementing it effectively for the utmost success. To help achieve optimal results, here are some final best practices to keep in mind for the smooth implementation of new technology systems.
- Measure ROI: Be sure you’re tracking KPIs, or key performance indicators with any new piece of technology you adopt. This could be tracking its revenue generation, or increase in customer satisfication or retention improvements, but allows you to provide cold-hard proof of your dealership’s system to potential buyers.
- Staff training: Another best practice for new technology system implementation is ensuring your staff is fully trained and on board with the change with change management programs.
- System integration: Before deciding on new technology to add to your dealership’s repertoire, double-check that it integrates with your current or existing systems to avoid it complicating already proven processes.
- Scalability considerations: Ensure the systems you select can grow alongside business expansion and increased transaction volumes. The chosen platforms must not only accommodate current needs but should also have the flexibility to handle additional locations, increased inventory levels, and growing customer databases without degrading performance or requiring complete system overhauls.
The Bottom Line: Get Dealership News from RVBS
To stay in line with the market and ahead of your competition, make RVBS your go-to for dealership news. From technology that impacts future dealership buy-sell transactions to suggestion RV dealership software that works, we strive to drive the industry’s future and empower RV dealers across the US.
Learn more with our complete collection of insights and resources, subscribe to our newsletter for dealership news and tips delivered directly, or get in touch to partner with the leading buy-sell advisory group for RV dealers to prepare your business for future sales and improved value.
Roger L. Nuttall served as President of Camping World, Inc. from January 2011. Prior to that, he was the Chief Operating Officer of FreedomRoads, LLC from January 2009 to January 2011, and the Executive Vice President and Chief Financial Officer of FreedomRoads, LLC from November 2003 to December 2015. From 1981 to 1983, Mr. Nuttall was a partner at McKay, Nuttall, and Reid, an accounting and consulting firm. Before that, he held various staff and management positions at Grant Thornton LLP from 1974 to 1981. From 1983 to 2003, Mr. Nuttall served as Chief Financial Officer and board member of Blaine Jensen & Sons, Inc., a multi-dealership RV company. He received a B.A. from Weber State University.
Mike has almost 30 years’ experience in the Recreational Vehicle (RV) Industry and provides advisory and consulting services to clients within that industry.
Scott Degnan is the Partner and Co-founder of RV Business Solutions and President of Degnan Management Group, Inc., a consulting firm.
Dom Bookman is the Chief Operating Officer and Investor Relations lead at RV Business Solutions. With 12 years of experience in the tech industry, Dom is a serial entrepreneur specializing in business development, marketing, and growth strategies for leading brands. He has successfully piloted startups and facilitated multiple exits for early-stage companies.