A slow sales month might feel like a loss, but if your dealership declined less than your competitors or your brand, it’s actually a sign of outperformance.
June 12
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If your dealership’s sales are down, your initial reaction might be frustration and worry. But before you start sounding the alarm, take a step back and look at the larger market. How did your competitors do last month? How many total cars were sold? How did your OEM perform?
A decline in sales doesn’t always mean you’re losing.
Your dealership’s performance isn’t just about the number of cars you sell; it’s about how you stack up against the local competition—and how your trending with your OEM’s market share. Even if your sales are down compared to last month, last quarter, or last year, you could still be gaining ground where it matters most: market share.
If the overall market is down, but your dealership’s decline is smaller than the rest, you’re actually increasing your share of total vehicle sales. That means you’re outperforming the market—even if the raw numbers don’t look like a win at first glance. It’s all about context.
But context goes beyond your local competitors. It also means understanding how your store is performing relative to your OEM’s brand in your DMA. A 10% lift in market share might sound impressive—but if your brand surged 15% during that same period, you’re actually losing ground within the brand. Conversely, if your OEM declined but you held steady, you outperformed.
Of course, there are times when a sales dip is just that—a dip unique to your dealership. But before assuming the worst, take a look at the broader market and your brand’s performance in your region. If competitors and your OEM are experiencing the same trend, your downturn might not be as concerning as it seems. If your store is the outlier, that’s a different conversation.
The same principle applies when sales are up. If your dealership just had a record-breaking month, that’s great—but before breaking out the champagne, consider whether the entire market and your OEM brand also saw a lift. If everyone else experienced similar or even greater growth, your market share could be shrinking in both the local and brand context. More sales don’t always equal better performance if your slice of the market—and your lift compared to the brand—is getting smaller.
So next time your numbers come in, don’t just ask, “Did we sell more cars?” Ask the better questions:
“How did we perform relative to the local market?”
“How did we perform relative to our brand?”
Because at the end of the day, the goal isn’t just to grow—it’s to outperform.
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