Making staff and customers part of the family
To treat your staff as family and invest in them to grow with your business, is at the core of our success at Riversdal Toyota.
- Dealer News
- 13 June 2025
At some stage in the next twelve months, you are going to be faced with drawing up budgets for the next financial year. Simply taking last year’s performance and adding or subtracting from those numbers for your budget is really easy but mostly ineffective.
I detail below some critical inputs that should be considered when budgeting for your new vehicle Gross Profit (GP):
Once you have the volumes and model mix for your area, you need to calculate/estimate the selling price of your models as well as the GP% you expect per model.
What are you going to charge for PDI? This needs to be considered as part of your cost of sale.
With the above info, you will be able to calculate the dealership’s new vehicle volumes, average selling price and GP for new vehicles (first gross).
I like to break down GP into first gross, second gross and F&I gross:
Second gross consists of all additional products that are not finance or insurance related. This includes accessory sales, “3 in 1” sales, window tint, documentation fees, admin fees and any other products that you sell that are not finance and insurance related.
You need to consider model mix when determining your second GP as the potential for accessories on an LDV is way higher than it is for an entry-level car.
F&I GP is you finance commission, warranty sales and GP, maintenance/service plan sales and GP.
Lastly, you may want to include a provision for after-sales, advertising or any other type of provision that you deem necessary.
In order to pinpoint performance, I would recommend a separate line item for each of the components that make up first GP, second GP and F&I GP. It is then much easier to measure areas of performance and non-performance.
To treat your staff as family and invest in them to grow with your business, is at the core of our success at Riversdal Toyota.
Isuzu Motors South Africa (IMSAf) has reinforced its commitment to the ISUZU global sustainability targets set out in Isuzu Motors Limited’s Environmental Vision 2050, a long-term strategy aimed at addressing global environmental challenges.
Advertisement
Advertisement
I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
To treat your staff as family and invest in them to grow with your business, is at the core of our success at Riversdal Toyota.
UD Trucks Southern Africa (UDTSA) hosted its 2025 Annual Dealer Conference (ADC) where key stakeholders from across the dealer network and high-performing dealerships that delivered exceptional business results in 2024 were honoured.
The Value of Franchise (VOF) is the “value” the franchisor delivers to the franchisee. There are a few components that make up this value, and I will mention some of the main components that I believe are pertinent to the dealer/manufacturer (OE) relationship.