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.

Whether creating digital art, recording music, or editing photos and videos, there is unique software to complete each task. However, the market is filled with hundreds of developers, each offering a range of features for a specific price. And there is always the off chance that one may not be happy with their purchase. So, if you have decided to buy software for your home system, here are ten common mistakes to avoid.

Overspending on features
Every software has numerous standard features, plus optional add-ons for an extra fee. More often than not, the developer’s website will give you several reasons why buying the fully-loaded version is the ideal choice. But you will likely never use some add-on features despite paying more money to unlock them. So, if you are beginning to learn a particular software, spend only on the standard variant. You could eventually pay for additional features as you become more familiar with the tool.

Buying from spurious websites
Every software has a price tag that may occasionally drop during the festive season or on particular sale days. But you may come across a few websites that continually advertise a price too good to be true. These websites may accept your payment but never deliver the software activation code or send one that does not work. So, always check the authenticity of the websites you visit to buy computer programs and avoid those that look suspicious.

Picking the first option
Many people use their search engines to look for the software they need and purchase the first option that shows up on their screens. Remember, links at the top of the results page are often sponsored. So, you might be buying something that does not give you complete value for money. Instead of buying the first product you see, list all the top online retailers selling the software and compare them. Then choose the one that offers the best features for the price.

Rushing the purchase
Just like picking the first option that pops up on the screen, some rush their software purchase because of a time crunch. Doing so may cause you to pay a lot more than you should. So, take enough time to pick software for your needs to ensure you do not overpay for the product. If possible, wait until the holiday season, when retailers drop prices on computer software by a high margin.

Not reading reviews
People often buy software without reading a single review, which is one of the biggest mistakes they could make. Hundreds of customers post ratings and reviews on the internet about their experience with particular software. These posts could cover several factors, including the product’s usability, value for money, and benefits or drawbacks. Reading these online reviews could help you make a more informed decision when buying the software.

Skipping the trial
Another error people make when buying software is not signing up for the trial. Most computer programs offer at least a seven-day trial for users to familiarize themselves with the interface before making a monthly or annual payment. So, do not pay for the tool until you use its trial version to ensure it is the right choice for the tasks you need to complete.

Not checking compatibility
While a particular software may have all the necessary bells and whistles you require, your money might go in vain if you do not check its system compatibility. Each product has different requirements in this aspect. For instance, some may require a certain amount of storage space and RAM to function efficiently, while others may need a specific chipset. So, check if your computer has the basic requirements before buying the software. Doing so will ensure you have the right product.

Making long-term commitments
Many users sign long-term contracts when purchasing software to reduce their subscription fees. However, they fail to consider that their needs might change with time. So, while the software might suit immediate needs, you must assess whether it will still be useful after a few months or a year. If you think your software requirements are temporary, sign up for a monthly package over a yearly subscription.

Going for the lowest-priced deal
You will find many software solutions for the same purpose but at different price points. To save money, users often pick the cheapest product. Doing so leaves them with software that is glitchy and full of bugs. This hampers their overall user experience and compels them to pay more for better tools. So, carefully check the features included in the software along with the price tag to avoid disappointment later.

Not reading the fine print
Besides the software’s features, developers publish terms and conditions and other legal documentation on their websites. Purchasing the program without reading this information could be problematic because many developers list the additional charges in the fine print. The terms and conditions may also mention how users can or cannot use the software and the level of privacy offered. So, you must read the documentation bundled with the software before signing a contract and making the final payment.