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.
Supergroup Dealerships announced the upcoming launch of four new MG dealerships as part of its growing portfolio. The new locations that are set to open soon, include three on the East Rand, one in Rustenburg and one in Paarl, Western Cape.
The highly anticipated F&I Industry Awards 2024, which were held recently, showcased the pinnacle of excellence and innovation in the automotive financial and insurance sector.
In a groundbreaking move towards offering a comprehensive, one-stop integrated service to its customers, Absa has introduced an integrated Finance & Insurance solution for dealer partners across South Africa. This innovative initiative marks a significant step towards enhancing customer experience and streamlining financial services.
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I always do like seeing other people dance in their cars. It's one of the things that makes me happy.
Ariel Gore
Supergroup Dealerships announced the upcoming launch of four new MG dealerships as part of its growing portfolio. The new locations that are set to open soon, include three on the East Rand, one in Rustenburg and one in Paarl, Western Cape.
The Nissan Magnite seems to have captured the imagination of traditional as well as new buyers of the brand. With an updated Magnite recently launched and arriving at dealerships currently, there is good interest from prospective buyers of small Crossovers with a strong SUV character.
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.
