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Dealers catching up with independent shops
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A recent study in Great Britain indicates that independent garages have adapted more quickly to the recession, but franchised dealers are starting to catch up.
At first independent garages generally adapted faster to the recession than franchise dealers, according to motor industry consultancy Network Automotive which is based in Great Britain. In key areas such as adapting to changing customer needs, losing headcount where necessary and adopting new marketing strategies, the independents have led the way.
In contrast, the study said, the franchise dealers with their larger and complex management structures also have the added complication of manufacturer involvement. So it takes more time to bring about change.
The two areas where the independents led were in negotiations with customers and price reductions. Most independent repair shops have traditionally pitched themselves as a low cost alternative to a franchise dealer, so leading on price is something that comes naturally to them.
For franchise dealers, especially those who are the most concerned about brand equity, even talking about costs is something they have discouraged in the past -- but most of them have had to change rapidly. Dealers may move slowly, but they know what needs to be done.
With the recession now a year old, many franchise automotive dealers are beginning to catch up with and some even have passed independents in their responses to the recession.
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