Managing a dealership is a demanding job. Several aspects need to be taken into consideration to run the business smoothly and effectively. Using business management software such as a dealer management system (DMS) can help ease this process. Efficient DMS can assist you in effortlessly managing different aspects of your business through unified software. This includes pre-sales, sales, purchases, post-purchase, financial accounting, inventory management, CRM, human resources, and more. Read on to learn more about DMS.

What does a dealer management system do?
The main objective of a dealer management system is to ease operational tasks and enhance operational efficiency. It takes the load off of excessive paperwork by streamlining and providing a centralized location for all your important data. A good DMS will also improve communication across different departments within your organization, encouraging better business awareness for your employees.

Dealer management systems can help you with the following:

Inventory management
This is a crucial feature for dealerships with large inventories. It can help you store records in a single location and retrieve them at the click of a button. It can also help you monitor your expenses for reconditioning and flooring and provide industry-standard book values.

Customer management
Instead of looking through physical records for each of your customers, a DMS can help you store and access customer data more smartly. Some software also allows you to call or chat with your customers in real-time. These software applications are generally equipped with features that allow you to record conversations and categorize your contacts to easily follow your leads.

Accounting
DMS can help you automate all your accounting tasks, such as inventory, point of sale, and transaction costing. This will enable the quick generation of financial reports that can be shared with the rest of the team. It can also help you develop an operational budget, monitor performance, and analyze the profitability of every aspect of your business.

Service management
Your DMS can also help you organize and manage the dealership’s service schedule to help you meet deadlines. It can help you streamline the service write-up process, schedule service work to maximize billable hours, allow your team to clock in and out easily, and make repair and warranty claim handling easier.

Features to look for in a dealer management system
The goal of an effective DMS is to improve your service capabilities while offering a great experience for your customers. While all businesses do not operate in the same manner, here are some standard DMS features that every business could benefit from:

Inventory management
Integrated accounting
POS and retail management
Reporting tools and analytics
Customer relationship management (CRM)
Service scheduling and productivity tracker
Repair order and billing estimates
Deal structuring, forms, and contracting
Lead management quoting

If you are keen on a DMS that offers more, look for the following features:

Multi-location management
Embedded text messaging
Slips and storage management
Cloud hosting
Employee training
IT support
Price file updates from major manufacturers and distributors
Availability across major phone/computer operating systems
Integration with third-party solutions (such as CRM, ERP, Chatbots, RMA reporting, and smart search features)
Prices for dealership management software can vary depending on the features offered, setup fees, number of systems installed, inventory list, and other factors.

Tips for choosing the right dealer management system for your business
If you’re in the market for a new dealer management system for your company, following these tips can help:

Prioritize the list of features
Classify all the features into three categories: needs, wants, and nice-to-have. This will help you prioritize your requirements and choose a DMS that is suitable for your business.

Needs
These are the non-negotiable features that a potential DMS must have. It may include inventory, unit tracking, sales, management, scheduling, accounting, etc.

Wants
Although these are not crucial for the functioning of your business, these features can help improve efficiency and provide insights. Some common features companies want include CRM, sales pipeline management tools, automation tools, sorting, report generation, and third-party integrations.

Nice-to-have
These may be considered frill features by many. While they can help improve your experience with the DMS, you can also comfortably continue your operations without them. Some nice-to-have features include training tools, mobile functionality, internal communications, cloud-based software options, and accessible customer support.

Create a list of vendors
This can help you find the right vendor for your business. Create a list of vendors that meet your priority list. You can scour the web for businesses, speak to your friends, colleagues, and acquaintances for suggestions, check industry publications, read online review listings, or even post on a public forum. Once you have a list of potential vendors, it is time to start shortlisting.

Request a demo
Conduct a thorough vetting of your list of vendors. You can reach out to their contact person and ask for more details to make an informed decision. Request a demo session once you have shortlisted two or three potential options. A formal demo session with the vendor can help you fill any remaining gaps in your knowledge about their offering and ensure the provider meets all their claims.

Once you have finalized your vendor, it’s time to make a proposal. The ideal DMS will help you streamline and support your business as you scale it to greater heights.

Consumers have turned to different online modes to shop or book a service appointment. Starting an online business can be challenging and tricky. Online businesses offer massive benefits and can be expanded to provide goods or services in more than one location. But there are inevitable mistakes that may not make the business a success or may act as a hindrance to progress. Therefore, it is important to be aware of every aspect of an online business.

No business plan
It is good to have a business idea. But having a base business plan is also essential. This plan will give an outline for starting the business and will also help attract and impress investors as it will give an idea of using the provided funds. It will also help in setting a timeline for when you anticipate the business to break even.

Delaying the launch
Evaluation and research are good, but taking too much time exploring and not starting your online business on time may be the biggest mistake. A longer launch timeline may also provide competitors an opportunity to launch a similar business. Also, launching the product on time will provide you with sustainable revenue.

Lack of passion for the business
Sometimes, people start their business without passion, dedication and commitment to that particular product or service. In that case, there is a significant probability that the business will remain stagnant as you might not be willing to put in the required effort for it to succeed. Therefore, start an online business only when you are passionate about it. Business without passion may be a failed venture.

Not deciding the target audience
It is crucial to decide and define the target audience and to whom the product or service will ideally serve, as everyone cannot be the target audience for your particular product or service. Identifying your niche will help you decide where and when to direct your efforts.

Expecting to make quick money
Any business, whether online or physical store, may not make money in the first year of its incorporation. Some online business entrepreneurs may think they can make quick money compared to traditional businesses because of the lower overheads. However, this may not be the scenario.

Not listening to negative feedback
It is good to listen to positive words regarding the business, but listening to critics and negative feedback is also essential. Listening to negative feedback can help you understand the target audience and the customer better. It would help you tweak the product or service and develop efficient and effective customer service. It will also show that you are keen to improve your business.

Ignoring the legal requirements
Legal procedures help the business function smoothly at a private or public level. Ignoring them would lead to serious trouble. For example, the incorporation procedure cannot be skipped, which can be a common mistake entrepreneurs make. Following the legal procedures and having a partnership agreement can prevent misunderstandings in a joint business.

Not looking into the competition
Many brands and services in the market might target the same audience as your brand. Therefore, there is a need to study the competitors to understand what they are doing, their strategies, and where they are going wrong. After learning about their strengths and weaknesses, you can implement different plans to serve your customers better.

Not optimizing your website
A website is crucial for an online business. Therefore, optimizing it to reach out to the masses is essential. There is also a need to have a Call to Action (CTA) on the website pages, and the load time should also be fast so that users can get the information they need quickly.

Ignoring customer service
Customers are likely to leave feedback on the website. Having a strong customer service to understand their grievances or positive feedback can help improve the business. Create a system that helps you interact with the customers through chat, email, survey or phone.

There are lots of opportunities available online with the introduction of the internet. Create your website, get it optimized and craft your email list. Avoid these mistakes when setting up your online business and you will reap the rewards.