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Let’s Do the Math: Integration Fees Are Hurting Your Dealership

by Lindsay Lauck
on July 24, 2019

Many dealerships are feeling the pinch of margin compression, strict government regulations and compliance rules, and the high cost of turnover. But there’s another hidden cost impacting your bottom line, and it’s hidden in plain sight. As dealerships adopt modern technology services to run their businesses more efficiently and meet customer demands faster, the need for integration between platforms and systems comes with data access charges, or worse, user fee agreements, that can seem small—at first.

It Adds Up

According to research, the average automotive dealership now uses up to seven technology systems just to complete a transaction. That’s seven systems that all communicate (hopefully) with each other, seven systems that require training for your employees, seven logins, and seven different user access rights agreements. Beyond that, if you’re working with multiple vendors, you’re likely paying up to seven different vendor agreement fees at this point to access your data.

If your dealership uses 7 apps at an average cost of $500 for third-party integration fees, that’s $3,500 a month—or $42,000 a year.

Still Not Sure How Much You’re Spending?

Your dealership depends on the right technology to get the job done. And, you can’t go back to filing paper reports and making your customers sit around and wait while you extend the already long process of completing a transaction. When it comes to running your dealership in a hyper-competitive market, your Dealer Management System (DMS), is the central technology that keeps your dealership running. Are you sure you’re not overspending on third-party integrations or extended contract fees with a provider who doesn’t have your best interests at heart? Plug in the numbers here and see what your technology is really costing your dealership.

The Right Technology Can Save You More Than Just Money

Once you see for yourself how much it costs to access your own data, you’ll start to wonder how much an outdated, legacy DMS costs you in other ways. For instance, a DMS that doesn’t offer on-demand training or access to an online community could stifle your team’s ability to grow their skills. Technology that impedes your new hires and your onboarding process costs your dealership in time, productivity, and even sales in the long run. Your technology should help, not hinder your dealership’s processes and workflows.

Start expecting more from your technology. Calculate the extra costs that often go unnoticed to access data that you already own, and demand more, today.

Calculate your costs here.

Tags: Calculator, DMS, Fees

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