How Lexus dealer Peter Cooper is rethinking the luxury auto business model

Dealers have seen record sales and profits throughout the last year with less inventory so how are things on the luxury side? On today’s show, we’re pleased to welcome Peter Cooper, President, and CEO of Lexus of Lehigh Valley to discuss market trends and what he’s experiencing.

Cooper begins the conversation by discussing gross profits for his store. He says sales have been through the roof. He also says, the number one thing you need to do is tell consumers they can’t have it and they’ll all run out to buy it. He thinks a lot of dealers were shocked by Toyota and Lexus shutting down plants in September. The luxury market is limited with its supply chain.

When asked, how much the number of day supply, he would like to have at all times,  Cooper says, that such a broad question, he can’t answer. He says their outside economic conditions that lead to that. It also leads to the customer having a horrible experience to have to go through. If the manufacturer believes dealers should have a customer-centric model, Cooper says they should be paying them a ton of attention to data that’s coming in now.

Cooper says they’re averaging between 70% to 80% of full transactions happening outside of their store. He says, he never wants a customer to come there unless the customer wants to. Their dealership is a negotiation-free store. He says, the less we can get people to do, the easier it becomes to transact.

Cooper ends the conversation by discussing the challenges for the automotive dealers and the industry. He says for him, it’s where and how they’re going to find or develop the technology to enhance their businesses? Also, create the process to support that.  He says, he worries about their digital presence and how they can enhance that. He also says their facility and creating a great experience for their customers.

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