In today’s automotive retail landscape, Business Development Centers (BDCs) have evolved from optional departments to essential components of successful dealership operations. This guide examines whether dealerships should build an in-house BDC or partner with an outsourced provider like Strolid, helping you determine which model best suits your specific needs in today’s digital-first marketplace.
The role of Business Development Centers has expanded significantly beyond handling incoming calls. Today’s BDCs manage leads across multiple digital channels while freeing salespeople to focus on closing deals. With studies showing nearly 25% of calls to dealerships go unanswered and customers expecting near-immediate responses, effective BDCs have become indispensable for maintaining competitive advantage.
| Cost Efficiency | ❌ High Overhead | ✅ Lower and predictable |
| Staffing & Turnover | ❌ High Turnover | ✅ Professionally trained, 7 yr. average tenure |
| Training & Development | ❌ Continuous | ✅ Ongoing at zero cost |
| Technology | ❌ Requires dealer investment | ✅ AI-powered, dealership optimized tools |
| Quality & Performance | ❌ Varies by staff experience | ✅ Consistently high-quality calls |
| After-Hours Coverage | ❌ Unavailable | ✅ 24/7 Coverage |
| Scalability | ❌ Limited to hiring capacity | ✅ Instant scalability |
| Appointment Set Rate | ❌ Lower, inconsistent | ✅ Higher, proven conversion strategies |
| Focus & Expertise | ❌ Distracted by other tasks | ✅ 100% dedicated to BDC operations |
| Compliance & Call Monitoring | ❌ Varies, requires oversight | ✅ Full QA, backed by vCon technology |
| Integration with CRM | ❌ Requires setup and management | ✅ Seamless CRM integration included |
| Reporting and Insights | ❌ Manual tracking, inconsistent | ✅ Data-driven insights & analytics |
| Speed to Lead Response | ❌ Slower response time | ✅ Lightning-fast, 100% personalized |
| Consistency & Accountability | ❌ Dependent on management | ✅ Managed for peak performance |
| Transparency | ❌ Inconsistent, commission motivated | ✅ 100% transparency and access |
With an internal BDC team, dealership management maintains complete control over processes, training, and staffing decisions. This closer integration allows representatives to develop deeper understanding of your inventory, promotions, and service offerings while building stronger customer relationships. In-house teams can integrate seamlessly with other dealership operations, potentially creating a more cohesive customer experience.
Implementing an in-house BDC requires significant investment in infrastructure, technology, and specialized staffing. Initial expenditures include dedicated office space, workstations, computers, phones, and specialized software. Ongoing operational costs include technology maintenance, continuous training, and management oversight.
Staffing represents the largest recurring expense, with the recruitment, training, and retention of qualified BDC representatives consuming substantial resources. For optimal effectiveness, BDC operations must cover extended hours—ideally 12 hours daily, seven days weekly—requiring careful staff coordination and management.
Outsourcing BDC functions provides immediate access to specialized expertise without infrastructure investments. Professional BDC providers bring industry-specific knowledge, proven processes, and sophisticated technology systems honed through years of experience across multiple dealerships.
This approach creates clear division of labor, allowing dealership staff to concentrate on their primary responsibilities while BDC specialists handle lead nurturing and appointment setting. The scalability of outsourced solutions represents another advantage, allowing rapid adjustment to changing business needs without staffing concerns.
Dealerships often worry about reduced control over customer interactions with outsourced providers. Quality partners mitigate this through transparent communication, regular performance reporting, and collaborative approaches to representing your dealership’s unique value proposition.
Integration with existing CRM systems and potential communication barriers represent additional concerns. Professional providers have developed streamlined integration processes with major automotive platforms and establish clear communication protocols between their representatives and dealership staff.
In-house BDCs require substantial upfront and ongoing investment. A properly staffed operation with 3-4 representatives plus management can cost $200,000-$250,000 annually in staffing alone, before considering infrastructure, technology, and indirect management costs.
Outsourcing follows a subscription model with predictable monthly costs. Strolid’s services start at $499 monthly, with most dealerships investing approximately $6,800 monthly for comprehensive coverage. This fixed investment eliminates unpredictable expenses while allowing for more accurate financial planning.
For most dealerships, the break-even point comes quickly. With just 2-3 additional monthly sales attributable to improved lead handling, the outsourced investment typically pays for itself while eliminating management headaches. One multi-store group reported saving approximately $97,000 annually after switching to an outsourced model while simultaneously increasing lead conversion rates by 22%.
Whether in-house or outsourced, today’s BDCs must adapt to significant industry trends. The growth of electric vehicles, advancement of autonomous driving technology, and increasing software integration all require specialized knowledge that BDC representatives must continuously update.
Artificial intelligence is transforming customer interactions throughout the automotive industry. BDCs that effectively leverage AI capabilities can dramatically improve customer satisfaction while streamlining operations. However, implementing these sophisticated systems requires technical expertise and ongoing investment—resources that outsourced providers typically spread across multiple clients.
The acceleration of digital retail continues unabated, with 65% of vehicle buyers now shopping online or partially online. This evolution demands that BDCs effectively bridge digital and in-person experiences, guiding customers through various stages while facilitating smooth transitions to in-dealership interactions.
For in-house implementation, expect a 3-6 month timeline for space preparation, technology deployment, staff hiring and training, and process development. Outsourced implementations typically move more rapidly, with most partnerships fully operational within 2-4 weeks.
Regardless of approach, successful implementation demands clear communication with existing staff about role changes, performance expectations, and success metrics. Establishing comprehensive performance measurement systems ensures continuous improvement regardless of which model you select.
“Back in the old days if you couldn’t handle heat you wouldn’t survive in the car business. If you don’t want the heat then get out of the car business.”
Vin Micciche
CEO & Founder | Strolid, Inc
YOUR GROWTH STARTS HERE.
Your dealership’s future success hinges on effective customer engagement, consistent lead management, and professional follow-ups. Strolid’s Outsourced Automotive BDC offers all this and more.
When you schedule your free consultation, here’s what to expect: