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...
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25
November
Latest News
HOW DO YOU MEASURE YOUR DEALERSHIP’S PERFORMANCE?
Auto dealerships are bought and sold every day and there are very many valuation methodologies. Most of those methods are usually reflected as some level of multiplier of the annual operating profits of the dealership averaged out over a number of years. While this practice...
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30
October
Pay Plan or Job Description?
Over the 35 plus years of my career I have seen pay plans that range from a hand written on a scratch paper one pagers to 10 page complex ones with legal disclosures usually drafted by an attorney and anything in between. I seldom see...
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11
September
You deserve to make a profit…
...the question is how? Last week Lexus executives announced a pilot program with 12 of its dealers to experiment haggle-free selling. We all remember that in early 1990’s Saturn started as a “New kind of Car Company” and introduced haggle free selling. They went out of...
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14
August
On the Topic of Service Retention…
Measuring service customer retention with more than methodologies...
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29
July
Painting Profits With Numbers
"Controlling Expenses and Increased Efficiencies" While we continue to enjoy another record braking year in car sales at a pace of 17MM (SAR as of May 2015), efficiencies start dropping down and we tend to forget what we left on the table. Needless to say we...
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23
June
IS YOUR PROFIT SITTING ON YOUR LOT?
Understanding why it’s still sitting there. Whether you are an owner or a conscientious general manager, one of your primary focus areas should always be your cash flow. Inherently creative GMs will find ways to inflate profits since their compensation largely depends on bottom lines.As an owner,...
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22
May
PROFIT IS NOT A DIRTY WORD
Profit Promise Vol 5 PROFIT IS NOT A DIRTY WORD! HOW TO STEER CLEAR OF TROUBLE Late last month FTC announced the results of a “crackdown” on auto retailers and their finance practices called “Operation Ruse Control” in an effort to protect consumers when purchasing or leasing a...
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22
April
Your Most Precious Commodity; “Your Team”
PROFIT PROMISE SERIES 3rd Ed. YOUR MOST PRECIOUS COMMODITY; "YOUR TEAM" In our January issue, we talked about the component of successful operations that will dominate in this decade; “People and Process”. One of the greatest detriments in auto retailing at the moment is quality of people. If...
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13
March
What is Your Business Worth?
Profit Promise Series The Profit Promise II What is your business worth? At the peak of new record breaking sales in the U.S., a new group of interested buyers are coming into picture. After Warren Buffet’s some $4 billion acquisition of the Van Tuyl Group, private equity groups...
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19
February