To kickstart a new series of blogs aimed specifically at the motor dealer market, our Operations Director Terry Reeves was invited to contribute his thoughts to leading trade publication Automotive Online how motor dealers can cut costs, save energy and deliver decarbonisation without turning off the showroom lights.
Last year was a perfect storm for energy prices. Unfortunately, the situation looks likely to worsen in the coming months.
Dealerships interviewed by AM Online for a recent story spoke of fears that they will have to cut costs elsewhere, or even switch off the showroom lights for good. As if that wasn’t enough, car retailers also face the challenge of decarbonisation.
As-a-service: the 21st century solution
Many businesses recognise that the quickest way to cut energy costs is to use less of the stuff in the first place, which means leaning into energy efficiency. But the catch-22 is that although energy efficiency is a route to long-term cost and carbon savings, you may be reluctant to invest in it when cashflow is an issue.
One increasingly popular solution to this problem is the “as-a-service” model for energy efficiency upgrades. Take lighting for example. Because it is such an important element of the sales experience, many retail businesses in the motor world and beyond are switching on to Lighting-as-a-Service.
But rather than pay for all those improvements upfront, you sign up to a service-based contract with fixed monthly payments. Of course, the reduction in running costs, not to mention carbon savings, kicks in straight away.
One company who has deployed and benefited from our Lighting as a Service is Rygor – the largest dedicated dealer group for Mercedes-Benz commercial vehicles in the UK. By upgrading to the latest LED lighting at eight of its sites, the organisation in on course to reduce operational costs by more than £95,000 over 12 months with carbon savings amounting to 980 tonnes.
EV opportunity
Some dealerships see the shift to electric as yet another unwelcome change during challenging times. Others are keen to benefit from the EV revolution, but are aware that they don’t have experience in this area and are dismayed by the heavy upfront costs of installing charging infrastructure. Again, the as-a-service model is the most practical solution allowing businesses to benefit from having the facilities on site.
There is no doubt that big changes and challenges are coming in the auto world. But with the right strategy, and the right partner, many dealerships will actually come out stronger.
This article is published in full on AM Online – https://www.am-online.com/opinion/2021/12/20/dealers-can-ride-the-storm-of-soaring-energy-prices-opinion
To download Journey Energy Solutions ‘How to cut costs, save energy and deliver decarbonisation: a guide for motor dealers’ click here.
