dzervit said:
Well, now that I think about it.. we have a dealership on every corner. It would be interesting to see the other factors that effect the sales - population density, total # of dealerships in the area, income, etc. What makes a successful dealership?
Seems size of the dealership has a lot to do with it. For example, Fletcher Jones (#2) is a HUGE Mercedes dealership. I used to go to UC Irvine and it was right next to the dealership and damn, that place is like a stadium. Plus, that area is loaded and there isn't much competition around Fletcher so I can see how they make a ton of money.
Accordingly, Longo Toyota is near the top of the list. While they have competition nearby, they're huge. The size does let them wheel and deal a little more and offer more selection. Longo is the biggest Toyota dealer in the state, possibly the nation (not sure). The demographics around that area aren't that good, but it's only a Toyota so there are plenty of people who can afford Camrys and Corollas.
The Honda and Toyota dealerships in my city (Cerritos) are also on the list. They're not nearly as big as Longo, but compared to the dealers where we bought our BMW and Mercedes, they're plenty big. However, our city's auto square where the two dealers are located is supposedly the biggest in the state. My city has a relatively well off demographic, but that's due to other factors (like my high school). Our neighboring cities (that aren't in the school district) are in the lower middle class.
Ultimately, I think the larger the dealer and the more selection you have has the most bearing on profitablility. Whether that's due to lack of competition, demographics of surrounding area, or just plain good luck from other factors, it doesn't seem to matter. It seems the bigger you are, the more you're able to accomodate more customers on deals so you get the sale vs. a smaller dealer that can't afford to negotiate as much for so long.
![[:(]](/images/smilies/frown.png "Frown [:(]")
