Toyota and Agri SA celebrate farming sector
Toyota South Africa Motors (TSAM) once again took centre stage in celebrating the resilience, determination and innovation within South Africa’s agricultural sector.
- Industry News
- 25 November 2024
As we all know, the profit of a motor dealership comes from several areas and each of them needs to be monitored closely if you want to ensure that your dealership performs well.
Within each department or process, the gross profit of that process or department can be made up of many components and each of those components should be managed for the overall GP to be where it should be.
Firstly, identify the components that make up the GP of a department and include them in your budget and management reporting.
Vehicle GP – selling price, cost, PDI, Recon, provisions, factory-fitted accessories or options, discounts, over allowance, OE incentives.
Accessory GP – fitted by the dealership – selling price, cost.
Delivery Fee/Documentation Fee/Admin Fee GP – costs may include fuel, gifts, out of town delivery, number plates.
L&R GP – selling price, costs of L&R, costs of L&R agent.
Warranty GP – selling and cost prices – can distinguish between OE and in-house/aftermarket products. Could also be commission only depending on the vendor.
Maintenance Plan GP – as per Warranty.
Service Plan GP – as per Warranty.
Top Up – as per Warranty.
Tyre Warranty – as per Warranty.
Dent Warranty – as per Warranty.
Bank DIC.
Each dealership will have its own interpretation of these components and how to account for them but each of them should be visible to management so that performance can be monitored.
When budgeting for these items, the following should be considered:
Type of vehicle – LCVs will naturally include more accessories than passenger cars;
Type of client – fleet/tender/rental will influence the products that will be sold;
Anticipated OE product mix – base-line vehicles will have more potential for additional products than “full house” vehicles.
One also needs to consider what the OE model mix and volumes are as well as what access you will have to those models – you can’t plan to sell 50 ‘Model X’s” per month when the OE will only have 20 available.
In summary, your GP is “hiding” in the detail.
Toyota South Africa Motors (TSAM) once again took centre stage in celebrating the resilience, determination and innovation within South Africa’s agricultural sector.
On 20 November, the winners of the Fleet Safety Awards 2024 were awarded at a star-studded Awards ceremony.
The National Automobile Dealers’ Association (NADA) announced the nationwide roll-out of its new dealership decal programme, designed to empower South African consumers in making confident, informed choices about where to purchase or service their vehicles.
Advertisement
Advertisement
A light on my car’s dashboard came on, and instead of fixing the problem, I waited for the bulb to burn out. Crisis solved.
Jarod Kintz
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
One of the latest Chinese automotive brands to establish itself in South Africa, GAC Motor, is benefitting from the expertise of well-known motor groups in the country, like the BB Motor Group.
Stellantis has announced the expansion of its multi-franchise dealer network with the addition of the Fiat and Jeep brands to the existing Westvaal Motor Group dealership in Klerksdorp in North West Province.