Here are a few basic ideas that should have a positive impact on gross profit (GP). Most of you are familiar with them but knowing them does not mean they are effectively applied. These are areas that I believe should form part of your daily, weekly or monthly reviews.
Purposely look at your new stock holding in terms of what you have, what is due from the factory and what stock you are short of. I have found that it is always possible to buy scarce stock from dealers if your stock controller is tasked to do so. In terms of stock on hand and incoming, how do enquiries look for the stock that is available. Get into the details to see if there is opportunity somewhere.
Know the make-up of the “second gross”. Which salespeople are generating second gross? What is the make-up of the “second gross”? Do you have a “second gross” plan or objective and if so, are all your salespeople up to speed on the expectations?
Analyse your closing ratios per salesperson, per model and per enquiry source. Knowing these ratios is vital when trying to optimize the performance of vehicle sales. Ensure that you know enquiries received per used car – if enquiries are high, why has the car not sold? If enquiries are low, is your pricing or marketing of the vehicle, correct?
Do you have a formal process for managing “workshop” quoting? How many clients request a quote? Who decides on pricing of the quote? How is the quote presented to the client? How many quotes are successful – your closing ratio?
How many parts sales enquiries do you receive per day? How would you expect these to be managed by your salespeople? What is the conversion ratio of enquiries to sales? Do you record “lost sales” and the reasons?
In summary, just a few ideas that would certainly improve GP in any dealership. They are simple and easy to implement if you are looking to improve dealership performance.
Samlin Racing has announced its new Lamborghini Racing Experience tailored specifically for corporate events. This unique experience offers companies a special way to reward clients and teams, turning corporate days into unforgettable racing events.
Volkswagen Group Africa has announced the start of operations of its multifunctional facility to pilot modern farming with e-tractors in Africa. The facility is in Gashora, Rwanda, about 60 km from the capital, Kigali.
With sinister looks and a specially modified 5-litre V8, the most powerful naturally aspirated Mustang to date – the Mustang Dark Horse – will soon be unleashed in South Africa.
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Human beings have an innate inner drive to be autonomous, self-determined, and connected to one another. And when that drive is liberated, people achieve more and live richer lives.
Daniel Pink
We are all excited about our new brand we added to our multi-franchise dealership. The new Suzuki dealership will definitely have a huge and positive impact on business.
GAC Motor South Africa has announced its expansion in KwaZulu-Natal through a partnership with Bidvest McCarthy Gateway.
Super Group, with over 29 automotive brands in its portfolio, has partnered with Jetour to open three exclusive Jetour dealerships in South Africa.
