Synergistic Opportunity
Selling to businesses is a "one to many" dynamic. Businesses not only purchase vehicles more frequently, they also generate retail referrals through their employees and families. Building a successful commercial business adds more and unique allocation from the OEM, increases store loyalty, broadens and stabilizes the revenue base, and enhances the dealership's overall market brand.
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Highly Profitable
Commercial vehicle sales yield higher gross profit than retail sales, plus business buyers are more loyal. Those business relationships deliver higher profits on service as well because downtime for commercial vehicles can cost businesses $2,500 - $5,000 per day or more, prompting owners to prioritize maintenance. As a result, some fixed ops departments are seeing RO dollars for commercial customers 2.5X higher than for retail customers.
Commercial Revenue
Work Truck Solutions Chief Vision Officer Kathryn Schifferle interviews Dan Bryan, GM Ricart to Business Fleet & Commercial Division in the latter half of 2023. While the market continues to evolve, this video demonstrates the type of revenue commercial vehicles bring to a dealership.
Average Annual Growth Rate
Selling vehicles to businesses (local, regional, and national) offers untapped revenue. Commercial vehicles are used by businesses driving 80% of US GDP, and the light and medium duty (classes 1 - 6) work truck market is experiencing a steady annual growth rate of 10.4% conservatively.
*source: Wards Intelligence
Every dealer I speak to is always looking for new paths into their dealership for revenue. You need to start with this one, this is almost a no brainer. This is something you owe to yourself, your staff and your dealerships’ bottom line to look into.CBT News Host, Jim Fitzpatrick
The One to Many Multiplier
Jim Fitzpatrick from CBT News interviews founder and Chief Vision Officer Kathryn Schifferle about the revenue snowball effect associated with selling commercial vehicles.
OEM SUPPORT
To meet growing demand in the SMB business sector, OEMs are introducing specialized commercial vehicle programs that expand inventory and simplify financing, along with offering mobile service solutions, telematics, and fleet management tools to boost vehicle uptime, all of which assist dealerships in fostering deep relationships with their local businesses. As a result, dealerships have new paths to generate more horizontal revenue and integrate commercial operations into their existing models.
Why Commercial Makes Sense Now
Embracing commercial vehicle sales is pivotal for dealership growth and profitability and Work Truck Solutions delivers online expertise, efficiency, and visibility to help dealerships entering, or doubling down, on the commercial vehicle market. By seamlessly connecting dealers, buyers, manufacturers, and upfitters, simplifying inventory management and providing crucial business analytics, Work Truck Solutions moves your dealership forward with revenue streams that capitalize on today’s B2B market.
Jim Press
Senior Advisor (Work Truck Solutions)
Jim Press discusses the golden opportunity that the changing world presents to dealers in the commercial and mobility sectors.
