
Major investment sees MANN+HUMMEL make filters in SA
Filtration specialist MANN+HUMMEL has opened a new state-of-the-art manufacturing facility in Kempton Park, Johannesburg.
- Industry News
- 4 April 2025
Staff costs are the largest overhead in many dealerships. Whilst simply comparing the costs over different periods will give you a broad idea of where the costs are, it will not give you much information on the efficiency of your non-GP generating staff.
Whilst technicians’ and salespersons’ productivity are well understood and managed, the so-called “nonproductive” staff are often employed based on industry norms or historical dealership structure.
Here are some measurements that you can use to help you understand where your dealership stands – this should be done over an extended period so that valid trends can be established.
Unit sales per sales department admin staff member – the price of vehicles has increased dramatically as has GP in most cases, but the invoicing process has not changed.
Workshop invoices per costing clerk – how has this changed over time? Are there any factors that you think could have affected this positively or negatively?
Parts delivery drivers per R100 000 wholesale parts turnover (delivered parts to offsite clients). Parts prices have increased enormously, and looking only at the salary cost of drivers as a percentage of GP will not deliver a meaningful result.
Debtors and creditors accounts per debtor and creditors clerk. An added measure could also be invoices per debtors and creditors accounts per clerk. A substantial number of different accounts with a few transactions per account will be more admin intensive than a few debtors accounts with more invoices per account.
These are only a few examples as your staffing structure is different in every dealership. If you are part of a group, it will be interesting to compare your dealership to other dealerships in your group.
The Halfway Group has opened the doors to a brand-new Lexus dealership, located in Lynnwood, Pretoria, with Chris Jones as the Dealer Principal.
With premium brands in South Africa taking the brunt of the economic hardship facing customers, challenges at dealership level are creating a new reality.
FAW Trucks Southern Africa recently convened its annual Dealer Conference and Awards, uniting its extensive network from across the region for a week dedicated to strategic alignment, collaborative growth and recognising excellence, it states.