As 2024 draws to a close, I think it is pertinent to look back at some of the articles that I have written this year. I always try to concentrate on the basics and very often they are the areas of a dealership that need continuous and regular focus.
The Right Parts at the Right Time – it requires consistent review and adjustment to ensure that you carry the right parts at the right time. It avoids obsolescence and generates GP – a double positive.
Google Reviews – make sure that your Google review scores are as high as possible and that customer feedback is managed effectively. Use these positive scores as part of your marketing.
Fixed Overhead Coverage – try to ensure that used vehicle, service and parts GPs cover your overheads, which means that your new vehicle GP minus variable overheads is effectively your bottom line.
Doing the deal versus selling the vehicle – a deal (sale and trade in) is most often far more lucrative that just selling the vehicle. Ensure you have a culture of doing deals in your dealership.
Parts Obsolescence – most of this comes from ordering of “nonstock” parts, incorrect workshop diagnosis and customer credits. Make sure that you have the processes in place to manage these areas of your business.
Telephony – know how many calls are coming in, the reason for the call, the busy time periods, the extensions involved in the calls. Make sure your telephonists are trained to answer the phone the way you require and that the client’s telephone experience with your dealership is positive no matter to whom they talk.
Used Car Stock Days – keep on top of activity on your used car stock so that overaged stock is an exception versus the norm. There is no reason for a used vehicle to be in stock longer than 30 days.
The full articles covering these subjects were published during the year and can be found on www.dealerfloor.co.za.
All that is left for me to say in 2024 is Merry Christmas to those who celebrate Christmas. Have a great holiday to those taking a break over the festive season and see you in 2025.
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Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
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