In an auto news piece on successful car dealerships, Jesse Snyder explores what Matick Chevrolet has done to set themselves apart from their competition. At Matick, they make a very strong effort to provide better competition than everybody else. They realize that all dealerships can offer employee pricing, so there is not much competition there, and there isn’t really anything they can do to improve the technology of the cars they sell. This means that the only thing they can control is how they are perceived by customers. They understand the importance of how they brand themselves, saying “We want to be a destination for car buyers.” They also set themselves up in a very strategic location near nice residential areas, but also very accessible from two highways, in order to attract both customers and employees. The closing of one of these highways for construction shows exactly for far out of their way Matick workers will go to set themselves apart. Their plans for dealing with the closing? “We’ll grin and bear it. Over-communicate with customers,” Paul says. “E-mail alternate routes, confirm every sales appointment, offer to pick them up, even go to their office or home to demo a car.”
I found this piece interesting because it demonstrates an extreme difference between how OEMs and how dealers function. While there is room for competition in prices and technology in the manufacturing market, dealerships have little room for competition. To me, it seems like the OEMs function in monopolistic competition, while the dealerships tend to be in a standard competitive market, and this only changes when dealerships like Matick Chevrolet go out of their way to differentiate themselves from the competition.