by Terry MacCauley - Posted 2 days ago
These past two days, I had the privilege of visiting with an NIADA BHPH 20 Group in Greenville, South Carolina. One of the highlights of our time together was a dealership site visit. It was more than a simple walk around the lot. It became a hands-on exercise in observing, critiquing, and learning from each other. Every dealer carried a notepad and took detailed notes on what stood out as exceptional and what could be improved to make the dealership more inviting and practical.
It was eye-opening to watch peers, each with years of experience, examine the most minor details. Were the vehicles lined up with precision or parked haphazardly? Were the colors blended evenly across the lot, or were all white cars grouped in one row? Did every vehicle have a placard on both the front and the back? Were the tires shining and the exteriors spotless? These may seem like minor points, but together they communicate something meaningful to the customer: this dealer cares deeply about presentation, product, and ultimately the customer experience.
Merchandising the lot also sets the tone for culture inside the dealership. When employees see the emphasis on every vehicle being presented with pride, they begin to feel that same responsibility. It is not only about clean lineups and tire shine. It is about creating an atmosphere where every car feels special. That may include popping a hood on the street side, opening a few doors on a pleasant day, or even playing upbeat music that adds energy to the environment. When employees sense how important the dealer principals place on merchandising, that attitude carries into every corner of the business. Customers notice the difference. They feel the pride, the care, and the energy, making them more confident in doing business with that dealership. Best of all, you will hold more gross too.
A well-merchandised lot is the automotive equivalent of curb appeal in real estate. Customers form opinions before they step into the showroom. They often form those opinions before they even pull into the lot. A clean, sharp, inviting display communicates trust, discipline, and professionalism. A messy or neglected presentation communicates the opposite.
The very best dealers treat their lots like living showrooms. They recognize that each detail, no matter how small, plays a role in shaping customer perception. From the spacing of vehicles to the shine of a tire, it is all part of the story long before a salesperson speaks a single word.
Precision matters. Vehicles lined up straight and evenly spaced communicate order and attention to detail. Mixing up the colors of the lineup catches the eye and prevents the monotony of rows filled entirely with neutral tones. Front and rear placards add a professional finish and keep branding visible from all directions. Tire shine and a clean exterior are not optional. Customers notice these elements and respond to them.
Energy also matters. Balloons and flags, while simple, still create movement, excitement, and visual interest. They make a lot look alive rather than stagnant. Dealers must also remain mindful of local ordinances that may restrict signage or decorations. Success is found in maximizing creativity within the rules.
Finally, curb appeal begins at the street. Landscaping, cleanliness, and organization determine whether a potential customer will pull in or simply drive past. The dealership lot must be inviting before the customer ever meets a salesperson. That means more than just shiny cars. Grass should be kept freshly cut, weeds should never be visible, and shrubs should be trimmed in a timely manner. A tidy lot communicates care.
There is also the less glamorous but equally important task of trash control. Passing vehicles often leave behind debris, and cigarette butts can accumulate quickly, giving the lot a neglected look. The best operators make it a habit to walk the property each morning with a trash bag in hand, reviewing the inventory while collecting any visible litter. This routine not only keeps the lot clean but also reinforces the standard of pride and energy that customers will notice immediately.
One of the most overlooked elements of merchandising is the practice of refreshing the lot. Consider how a clothing store constantly changes displays, rotates outfits, and moves merchandise to keep the store feeling alive. Dealerships should adopt the same approach.
When vehicles sit in the same spot for too long they become invisible to both customers and staff. By moving inventory around every 30 days, the lot feels renewed. A truck that looked stale in the back corner may suddenly draw attention when placed at the front line. Rotation creates energy and activity, reminding customers that the dealership is engaged and constantly working to present inventory in the best light possible.
What stood out most in Greenville was not just the sharp eye for detail but the dealers' willingness to share openly with each other. This was not about competition. It was about collaboration and the shared pursuit of excellence. That is the power of a 20 Group.
Merchandising may appear simple, but it is one of a dealership's most powerful tools. When executed with discipline and creativity, it can be the difference between a customer stopping to shop or continuing on to the next lot.
In Greenville, we focused on how a dealership presents itself on the physical lot. The lessons were clear. Details, energy, and rotation all matter. Yet today, the first lot of customers who visit is not made of asphalt. It is digital. The dealership website has become the new front line of merchandising, and the same principles that guide the physical lot now apply with even greater importance online.
Customers spend more time researching before ever setting foot onto a dealership’s property. The images on a website are often the first impression. A poorly staged photo or a cluttered presentation can turn a customer away before contact is made. A sharp, accurate, and professional display can extend the selling life of a vehicle and increase lead activity dramatically.
Shift Digital’s 2025 report underscores this truth. After analyzing more than 16,000 dealership websites and 80 million tracked leads, the study found that vehicles displayed with VIN-accurate CGI, custom backgrounds, and in-transit visuals generated significantly more engagement. These practices extended the effective selling time of inventory by as much as 70 days compared with poorly merchandised vehicles.
Digital merchandising succeeds when it mirrors the discipline of the physical lot. Stock images are no longer enough. Buyers expect to see the exact trim, color, and features of the vehicle they are considering. VIN-accurate CGI ensures that what they see online matches what they will find in person.
Custom backgrounds are another important element. Just as a cluttered lot distracts from the vehicles, a messy background in a photo can reduce focus. A clean, branded background keeps attention where it belongs and creates consistency across the inventory.
In-transit visuals allow dealers to market vehicles before they arrive. This not only builds anticipation but also shortens the path to sale. Customers can begin the buying process weeks before the car physically lands on the lot.
Custom overlays with monthly themes add energy to the digital showroom in the same way balloons do in the physical lot. A “Back to School” promotion in August, a patriotic theme in July, or a holiday overlay in December draws attention and communicates action. Done well, overlays reinforce branding while keeping the site fresh.
Video and 360-degree walkarounds bring the experience to life. Customers who can explore a vehicle from every angle and hear it start are one step closer to feeling ownership. Finally, consistency is key. The same images should carry across the website, third-party listings, and social media ads. Recognition builds trust, and trust builds sales.
The parallels are striking. Lining up vehicles with precision translates to consistent photo order. Mixing colors creates careful staging and a balanced presentation. Signage translates into overlays, watermarks, and branding. Rotation on the lot becomes updating images and refreshing themes online. The principles are the same: details matter, freshness matters, and pride of presentation matters.
Strong digital merchandising does more than improve appearance. It makes advertising more effective. Clean, consistent inventory feeds with quality visuals perform better on Google, Facebook, TikTok, and YouTube. They drive more clicks, lower advertising costs, and attract higher quality leads. Poor merchandising does the opposite, undermining campaigns and shortening the life of online inventory.
Merchandising is no longer a matter of asphalt versus online. It is both. The best dealers understand that their website is their first lot. Every photo, background, overlay, and video communicates the same thing as the balloons, tire shine, and sharp lineups outside: pride in product and commitment to excellence.
Dealers who apply these principles consistently, both on the ground and online, will stand out in the marketplace, capture customer trust, and ultimately sell more vehicles.
-by Terry MacCauley, Founder & CEO
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