Based on 1,000+ dealer-only conversations across franchise and independent rooftops in CDG Circles.
Big picture: Operators are noting declining lead engagement across traditional channels, with some operators reporting contact rates as low as 16% across phone, text, and email. This trend is driving a shift toward internal tech builds and direct-to-consumer acquisition strategies.
Engagement is moving toward "Super Gross" tracking—measuring front, back, and service profit against daily holding costs. Fixed Ops remains a critical hedge against sales volatility, with many stores aiming for 100% service absorption to provide greater flexibility in the sales department.
1) AI & Custom Tech Stack
Internal Agency Tools: Members are using agents to assist accounting with deal closures, automatically extracting invoices from email and updating CRM delivery pipelines via Slack integration.
LLM Optimization: Members report no measurable SEO impact from LLMs.txt files and note that Google has rejected the standard, suggesting limited value in paid optimizations for this specific file.
Super Gross Dashboards: New custom reporting is being developed to track "Institutional Gross" (Front + Back + Service + Pack) against the age of the unit to determine a specific "Gross per Day" performance metric.
2) Fixed Ops & Service Penetration
Service Absorption Benchmarks: While national averages are estimated at 60%, "top of class" targets are 100%. One member reported a Kia point at 25%, noting that 75% should be the baseline for long-term sustainability.
AI Inspection Tools: Despite prior concerns about ROI at the reported $5,500/month price point, one store reported alignment volume jumping from 120 to 295 per month after implementing UVEYE technology.
Reconditioning Software: iPacket Recon is noted at a $299 price point. Some members are exploring internal recon tools built via Claude Code to further manage costs.
Shop Leadership: Discussion continues regarding "non-working" foreman pay plans based on collective shop metrics rather than individual production to stabilize multi-rooftop operations.
3) Inventory & Financials
Acquisition Tool Performance: KBB ICO remains a consistent performer for several members, yielding 20+ units/mo. Conversely, some operators report lead volume below initial projections and inconsistent data quality with the CarGurus "Sell My Car" platform.
Direct-to-Consumer Sourcing: Members are utilizing Facebook Messenger ads to identify private sellers and lien-holders, aiming to reduce auction fees and flooring costs.
DMS Performance: Solera/Auto/Mate is highlighted as a cost-effective option, though members observe it may lack the automation and financial reporting ease required for stores exceeding 150 units/mo.
OEM Exit Challenges: One dealer reports difficulty securing OEM repurchase of 24 new vehicles and $75,000 in parts inventory following a franchise resignation, citing friction with state-specific statutes.
4) Marketing & Loyalty
Lead Contact Rates: Members are reporting significant difficulty connecting with consumers, with some tracking a 16% contact rate. This has led to a re-evaluation of third-party lead providers.
GPS & Retention Integration: CarChief is being used for service retention, integrated with Mitchell to automatically alert service departments when customers hit specific mileage intervals (e.g., 60,000 miles).
F&I Ancillary Costs: Ikon hardware is reported as free with 50%+ penetration (3-year service at $199). CarChief is noted at ~$100/unit and is being sold in F&I for $499 (3-year) to $699 (5-year).
Direct Mail vs. Organic: Some stores report better results by shifting traditional mail budgets toward organic social media marketing (Nomad) for event-based sales.
Top Actions for Next Week
Audit Lead Source Engagement: Review all lead providers to evaluate whether the spend is justified against actual contact and conversion performance.
Calculate Absorption Gaps: Determine the specific hourly production increase required to move current service absorption toward the 75% baseline.
Review "Gross per Day": Identify units in inventory that are below the "Super Gross" threshold once daily holding costs and reconditioning are factored in.
Evaluate Retention Automation: Investigate if current service tools are integrated with shop manuals (e.g., Mitchell) to automate outreach based on specific OEM maintenance intervals.
Verify Repurchase Statutes: Dealers considering a brand exit or sale should consult state dealer associations regarding specific repurchase requirements for inventory, parts, and tools.
Pro & Circles members: Your Wins & Warnings for May 8–15 are below.
Despite prior concerns about its $5,500/month price point, UVEYE is earning strong praise after one store reported alignment volume jumping from 120 to 295 per month, with additional tire and PDR revenue from the service drive. CarChief's Mitchell integration is generating 30–60 daily service alerts based on DTC codes and mileage intervals, and KBB ICO continues to hold at 20+ units/month for operators with a disciplined follow-up process.
On the warning side, one operator reported a close rate drop from 9% to under 4% on the CarGurus "Sell My Car" platform, with lead volume falling below contract minimums. Auto/Mate is drawing caution from members who report the DMS struggles to scale past 150 units/month. And a dealer who resigned their Mitsubishi franchise reported being unable to secure OEM repurchase of 24 units and $75K in parts after the termination became effective.
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