Tariffs Are Noise - Here's Where Dealers Should Focus Instead

At Dealer Alchemist, we believe resilience isn’t a buzzword; it’s a discipline. While tariffs can certainly impact new vehicle supply and pricing structures, they don’t control the operational levers that determine whether a dealership continues to grow. Smart dealers focus their energy on what external forces can’t touch — the core areas of the business that are fully within their control.

The Controllables That Still Drive Growth

As John McAdams, our Chief Revenue Officer, emphasizes often: “Dealers are some of the most resilient business operators on the planet. We adjust, we adapt, and we outperform when we stay focused.”

Here are the key areas every dealer should double down on right now:

1. Used Inventory Strategy

Tariffs may influence new car availability, but your ability to acquire and retail used vehicles remains in your hands.

The dealerships thriving today aren’t relying solely on auctions. They are building multi-channel acquisition strategies that include:

• Targeted private-party purchases
  
• DMS equity mining
  
• Marketplace and classified vehicle outreach
  
• Faster, more efficient reconditioning processes
  

As McAdams points out, it’s not enough to say, “We do private-party acquisition.” Success comes from having a systemized approach, measured outcomes, and continuous execution. Used inventory will remain a critical profit center — and those who control their sourcing strategies will control their future.

2. Fixed Operations Optimization

When front-end gross shrinks, fixed ops should be positioned to carry the load. Unfortunately, many dealerships treat service as a background function rather than a primary growth channel.

Service isn’t about oil changes. It’s about selling hours.
Every hour unsold at the end of the month is revenue left on the table.

In times of uncertainty, it becomes even more important to:

• Increase CP (customer-pay) tickets through better marketing and follow-up
  
• Close more declined service work by actively pursuing deferred opportunities
  
• Improve technician productivity and shop efficiency
  
• Deliver an outstanding service experience that retains customers
  
  

When done well, fixed ops becomes more than just a lifeboat—it becomes a profitability anchor in any market.

3. Website Conversion and Paid Traffic Discipline

In today’s landscape, most dealerships are generating enough website traffic. The real question is: Are they converting it?

McAdams often reminds teams that “Traffic isn’t the problem. Conversion is.”

Too many stores chase large traffic numbers without understanding that more volume without quality only burdens their BDC and sales staff. Now is the time to focus on:

• Targeting higher-quality, lower-funnel traffic
  
• Optimizing websites for user experience and simple next steps
  
• Tracking real conversion behaviors — not just vanity metrics
  
• Aligning marketing spend with measurable lead generation
  
  

Being surgical, not saturated, is the new advantage in digital marketing.

4. Customer Retention and Service-to-Sales Integration

Tariffs won’t cause customers to defect — bad experiences will.

At a time when buyers are already frustrated with inventory availability and pricing shifts, the experience your service and sales teams deliver is under a magnifying glass. Poor communication, unnecessary delays, or failure to acknowledge loyal customers can quietly erode your revenue foundation.

McAdams shares a recent example where a service customer requested a meeting with a GSM while waiting for an oil change — only to be ignored for over 30 minutes. It wasn’t just a missed sales opportunity; it was a breach of trust that likely cost future business.

Dealerships need to inspect and improve:

• Service retention strategies
  
• Customer communication workflows
  
• Sales handoff processes inside the service lane
  
• Reputation management protocols after every customer interaction
  
  

Your internal alignment on service and customer care will define your brand far more than market conditions.

Resilience Means Running Toward the Opportunity

Tariffs are simply another challenge — not a reason to retreat.

At Dealer Alchemist, we know that growth happens when dealerships:

• Lean into the controllable areas of their business
  
• Avoid panic-driven, knee-jerk decisions
  
• Stay disciplined in the fundamentals
  
• Continue refining the customer experience across every department
  
  

Markets will always shift. Headlines will always get louder.  But dealers who control what they can — sourcing, service, conversion, and care — will find ways to grow even in the most unpredictable times.

When chaos is loud, operational excellence becomes your true competitive edge.

If you’re reviewing your strategy for 2025 and beyond, start by asking: “Are we maximizing what tariffs can’t touch?”

Because that’s where real growth is built.