Foot on the gas, Not the brakes.
In times of economic uncertainty or declining sales, many dealerships instinctively hit the brakes—cutting costs, freezing training budgets, and restricting travel. While this approach may seem like a logical way to protect the bottom line, it often does more harm than good. The dealerships that thrive in challenging times are the ones that put their foot on the gas, doubling down on training, coaching, and support to drive long-term success. Here’s why pulling back is the wrong move—and how investing in your team can lead to sustainable growth.
The Danger of Cost-Cutting Mentality
When profitability is under pressure, the first instinct for many dealers is to reduce expenses. Common cuts include:
Training and coaching programs – Limiting professional development stunts team growth and weakens performance.
Travel bans – Preventing fixed ops directors, consultants, and OEM support staff from visiting stores removes valuable insights and problem-solving expertise.
Marketing reductions – Slashing advertising budgets reduces customer traffic and visibility when dealerships need it most.
While these actions may provide short-term savings, they often create long-term struggles. A poorly trained team, lack of external support, and reduced customer outreach can lead to declining revenue and profitability that’s even harder to recover from.
The Power of Investing in People
The dealerships that not only survive but thrive in tough times take a different approach: they invest in their people. Here’s how:
1. Training and Coaching Create a Competitive Edge
Instead of cutting training, struggling times are when your team needs it the most. Service advisors, technicians, and managers must be equipped with the skills and strategies to maximize every customer interaction. Investing in fixed ops coaching ensures your team improves efficiency, increases CP revenue, and builds stronger customer relationships—giving your dealership an edge over competitors that are just trying to “wait it out.”
2. Travel Bans Hinder Support and Growth
Many dealers impose travel bans to save money, but this often limits access to vital support staff. OEM reps, consultants, and industry coaches bring best practices and solutions that can help stores navigate challenging periods. Cutting off this support leaves managers and staff isolated, reducing their ability to adapt and grow. This includes dealer groups restricting their directors or support staff from assisting the store, which further weakens the ability to implement improvements and support struggling teams. Remote work isn’t the same or as impactful—being on-site allows for direct engagement, hands-on problem-solving, and immediate adjustments that virtual support simply can't replicate.
3. Customer Retention is Key—Not Just Cutting Expenses
When customer counts drop, retaining every potential service dollar is critical. A well-trained service team can increase CP hours per RO, improve customer satisfaction, and boost retention. By investing in coaching and performance tracking, dealerships can fine-tune operations to maximize revenue from existing customers rather than struggling to replace lost business.
The Bottom Line: Growth Comes From Action, Not Fear
How you react in critical times shows your priorities and goals. How your staff or teams see your priorities can make a huge impact on how they feel about the company they work for. In challenging times, the dealerships that stay aggressive with training, coaching, and support are the ones that come out stronger. Instead of reacting with cutbacks, forward-thinking dealers double down on skill development, operational improvements, and customer service enhancements. The choice is clear: step on the gas and gain market share, or hit the brakes and watch competitors pass you by.
If you're ready to equip your team with the tools they need to thrive, let's talk about how coaching and strategic investment can position your dealership for long-term success.