ARE YOU PROFITABLE OR EFFICIENT?
At times like this when SAR is at 17.2 MM we all know that you are enjoying another profitable year.
The question is how efficient is your business?
Loss during profitable times…
Often times when businesses enjoy profitable years we fail to run a tight ship and inadvertently leave some money on the table. This is more common among the dealers of more successful franchises. It is simply because tough franchise owners and everyone during bad years when sales are down pay more attention to detail just to survive or stay above water.
Profitable and Efficient?
I wanted to offer you a self check in this newsletter to assess if you are just profitable but also efficient. Take your time to answer the following questions simply YES or NO and then read along to see how you rank in terms of efficient profitability among your pears. If you have more than one retail location; you should have a separate evaluation for each location that has its own financial statement.
DEALER SELF ASSESSMENT QUESTIONNAIRE:
If you have answered all of the questions with a “YES”, you need not to worry about rainy days. If you have answered 75% of them with a “YES”, you might have some opportunities to be more efficient. However if you answered 50% or less with a “YES”, I urge you to assess your dealership’s operational structure and make some changes.
Please keep in mind that these stats are averages and benchmarks from metro markets and mostly in California. Not every one of them is applicable to all situations. My thought is, if you want to be compared to anything why not challenge yourself and compare to the best. After all, EXTRAORDINARY is just that little EXTRA in front of ORDINARY.
Our practice in the industry specifically deals with these types of opportunities and we assist our clients with credible data and suggestions to be the best that they could be and we take pride in it. Over the past 10 years we have worked with over 130 retailers in 4 states and have had great success in improving efficiencies. If you think that we can be of assistance please give me a call or drop an e-mail I would be delighted to talk to you.
HAPPY THANKS GIVING!