Big Time Advertising founder and CEO Terry MacCauley acknowledged running a dealership isn’t easy nowadays.

Shared earlier this year but still relevant as we get to the dog days of summer, MacCauley highlighted five ways to cut costs and boost dealer profits for the remainder of 2025.

“Profitability, strained by high interest rates and rising expenses, demands ingenuity,” MacCauley said in an industry message. “The challenge is even more pronounced for dealers without forward-facing service departments, as service revenue remains a cornerstone of industry earnings.

“This comprehensive guide unveils five proven strategies, enriched with industry insights and tailored solutions, to help independent and BHPH dealers cut costs, boost profits, and thrive in this dynamic era,” he continued.

Here are those five strategy suggestions:

  1. Harness AI and data analytics for precision operations

“Artificial intelligence (AI) and data analytics are revolutionizing dealership efficiency,” MacCauley said. “For BHPH dealers, analytics can identify creditworthy customers, reducing default risks. These tools also support online sales, aligning with the digital purchasing trend, ensuring dealers operate leaner and sell smarter.”

  1. Maximize service revenue — with or without a service department

MacCauley pointed out that service departments are “profit powerhouses” but recognized that not every independent dealership has one.

He suggested partnerships with fellow independent repair shops, offer third-party service contracts or build a referral system.

“For BHPH dealers, affordable VSCs reduce default risks by ensuring vehicle reliability,” MacCauley said. “(Referral programs) foster loyalty, particularly for BHPH dealers serving subprime customers who value warranties.”

  1. Optimize inventory and supply chain for resilience

“For BHPH dealers, balancing inventory with loan portfolio health is critical to maintain cash flow.

  1. Invest in employee training and cutting-edge technology

There’s an old cliché that a carpenter can be only as good as the tools used. It can be the same scenario at a dealership.

“A skilled workforce and modern technology are the backbone of efficiency. Training reduces turnover costs and improves service quality,” MacCauley said.

  1. Explore new revenue streams for diversification

MacCauley mentioned opportunities like electric vehicle charging or mobile service as potential path to more revenue.

“Diversifying income is key to resilience,” he said. “For BHPH dealers, tailored financing options for subprime customers open new revenue channels.”

For more ideas to keep your store in the black and other dealership strategies, visit Big Time Advertising online at https://www.gowithbigtime.com.