Featured Discussions - DealerELITE.net2024-03-28T21:03:56Zhttps://www.dealerelite.net/group/nothingbutnet/forum/topic/list?feed=yes&xn_auth=no&featured=1BUDGETtag:www.dealerelite.net,2011-02-10:5283893:Topic:554182011-02-10T21:21:56.956ZKARONEL PLOTThttps://www.dealerelite.net/profile/KARONELPLOTT
I HAVE A SMALL USED CAR LOT STOCKING ON THE AVERAGE 40 CARS. I AM A ONE MAN OPERATION. IVE BEEN IN BUSINESS SINCE 1981. HOWEVER THE LAST 2 YEARS IVE HAD TO LOOK AT MY BUSINESS IN NEW WAYS. HOW IMPORTANT IS A BUDGET? HAVENT HAD ONE SINCE I BEEN IN BUSINESS. THANKS
I HAVE A SMALL USED CAR LOT STOCKING ON THE AVERAGE 40 CARS. I AM A ONE MAN OPERATION. IVE BEEN IN BUSINESS SINCE 1981. HOWEVER THE LAST 2 YEARS IVE HAD TO LOOK AT MY BUSINESS IN NEW WAYS. HOW IMPORTANT IS A BUDGET? HAVENT HAD ONE SINCE I BEEN IN BUSINESS. THANKS "Do you need a few minutes to glance at your menu?"tag:www.dealerelite.net,2011-01-27:5283893:Topic:525142011-01-27T22:01:52.000ZNANCY SIMMONShttps://www.dealerelite.net/profile/NANCYSIMMONS
<p><span class="font-size-6" style="font-family: book antiqua,palatino;"><em>"Do you need a few moments to glance at the menu?"</em></span></p>
<p><span class="font-size-6" style="font-family: book antiqua,palatino;"><em><a href="http://storage.ning.com/topology/rest/1.0/file/get/2311726093?profile=original" target="_self"><img class="align-left" height="273" src="http://storage.ning.com/topology/rest/1.0/file/get/2311726093?profile=original" width="312"></img></a></em></span></p>
<p><span class="font-size-3" style="font-family: book antiqua,palatino;">A phrase we hear often when we go out to dine at a restaurant. …</span></p>
<p><span class="font-size-6" style="font-family: book antiqua,palatino;"><em>"Do you need a few moments to glance at the menu?"</em></span></p>
<p><span class="font-size-6" style="font-family: book antiqua,palatino;"><em><a target="_self" href="http://storage.ning.com/topology/rest/1.0/file/get/2311726093?profile=original"><img height="273" width="312" src="http://storage.ning.com/topology/rest/1.0/file/get/2311726093?profile=original" class="align-left"/></a></em></span></p>
<p><span class="font-size-3" style="font-family: book antiqua,palatino;">A phrase we hear often when we go out to dine at a restaurant. Perhaps we had already planned on an entree prior to arriving at the restaurant and our mind was changed upon hearing the daily specials or after glancing at the menu choices! Perhaps an appetizer sounds enticing, so we lessen our entree portion! Have you ever gone out to eat in a restaurant, where no menu was available? Maybe the menu is on the wall in the form of a menu board, or on the place mat, but there always is some sort of presentation which lists all available choices, correct?</span></p>
<p><span class="font-size-3" style="font-family: book antiqua,palatino;">Now, let's look at the service drive/ counter/ write-up area! Does you service department offer a menu with preventative maintenance packages highlighted? Do you also offer a la carte items for service clients to choose from? Are completed repair prices clearly marked? Are they distributed to the client at the greeting stage of the visit or do you wait until they ask for one? How do you handle menu-selling at your dealership? Please share some best practices in terms of menu selling which have worked effectively in your store. If you don't use a menu at your dealership, is there a reason why you think it is not necessary?</span></p>
<p> </p> Immersed in a Sea of Technology, Are We Drowning Ourselves?tag:www.dealerelite.net,2011-01-05:5283893:Topic:493082011-01-05T16:33:28.000ZNANCY SIMMONShttps://www.dealerelite.net/profile/NANCYSIMMONS
<p>In this digital age, we have seen our technology replace clerical staff, parts workers, inventory managers, etc. However, when do we cross that fine line where technology can be a detriment, removing and replacing the personal element necessary to building trusted relationships? </p>
<p>Have the letters spurting out of CRM printers replaced the nice friendly phone call from the sales representative? Has the survey postcard replaced the customer relations department's caring and…</p>
<p>In this digital age, we have seen our technology replace clerical staff, parts workers, inventory managers, etc. However, when do we cross that fine line where technology can be a detriment, removing and replacing the personal element necessary to building trusted relationships? </p>
<p>Have the letters spurting out of CRM printers replaced the nice friendly phone call from the sales representative? Has the survey postcard replaced the customer relations department's caring and compassionate inquiry ensuring all of the client's needs and concerns were addressed? Has the email or text replaced the Service Advisor's call informing the service customer their vehicle is now ready to be picked up with a professional and detailed description of all the services performed along with what may be needed a little down the road?</p>
<p> </p>
<p>I would love to hear all your thoughts on this... Can we conform entirely to the rapidly still growing age of technology without losing that personal touch?</p> Financial Institution Dilemmatag:www.dealerelite.net,2010-10-28:5283893:Topic:361762010-10-28T13:13:43.000ZTom Wiegandhttps://www.dealerelite.net/profile/ThomasJohnWiegand
<p class="MsoNoSpacing">A non-factory financial institution offers floor plan 1% less than factory.<span style=""> </span> The costs savings is significant.<span style=""> </span> Does a dealer jump, or will this action hurt
in the long run should the factory penalize dealer allocation?<span style=""> </span> What advice would you give a dealer and why?<span style=""> </span></p>
<p class="MsoNoSpacing">A non-factory financial institution offers floor plan 1% less than factory.<span style=""> </span> The costs savings is significant.<span style=""> </span> Does a dealer jump, or will this action hurt
in the long run should the factory penalize dealer allocation?<span style=""> </span> What advice would you give a dealer and why?<span style=""> </span></p> Floor Plan Assistance "Profit Center"tag:www.dealerelite.net,2010-10-27:5283893:Topic:360802010-10-27T21:32:20.000ZTom Wiegandhttps://www.dealerelite.net/profile/ThomasJohnWiegand
<p class="MsoNoSpacing"><font size="4">With reduced new vehicle stocking pressure, what measures are Dealerships actively taking to generate a true "Profit Center" in
<span style="font-weight: bold; text-decoration: underline;">Floor Plan Assistance</span>? Can this be a Cash Flow booster? Is this a real "Nothing But Net" factor to address?<br/></font></p>
<p class="MsoNoSpacing"><font size="4">With reduced new vehicle stocking pressure, what measures are Dealerships actively taking to generate a true "Profit Center" in
<span style="font-weight: bold; text-decoration: underline;">Floor Plan Assistance</span>? Can this be a Cash Flow booster? Is this a real "Nothing But Net" factor to address?<br/></font></p> Someone...get me a pocket calculator, a measuring cup, a ruler..something!!!tag:www.dealerelite.net,2010-10-12:5283893:Topic:325662010-10-12T14:34:00.000ZNANCY SIMMONShttps://www.dealerelite.net/profile/NANCYSIMMONS
<p>Folks...We all know about ROI...Return on Investment! We are sitting in the conference room at the dealership, entertained by an enthusiastic and powerful presentation by a vendor pitching a service or a new product, and the first question we ask... What do you propose will be our Return on Investment? Right? If we are spending $2000.00 per month to experience an increase of revenue by $10,000.00 sounds like a pretty good idea...right????</p>
<p> </p>
<p>Now, how often do we gather in the…</p>
<p>Folks...We all know about ROI...Return on Investment! We are sitting in the conference room at the dealership, entertained by an enthusiastic and powerful presentation by a vendor pitching a service or a new product, and the first question we ask... What do you propose will be our Return on Investment? Right? If we are spending $2000.00 per month to experience an increase of revenue by $10,000.00 sounds like a pretty good idea...right????</p>
<p> </p>
<p>Now, how often do we gather in the conference room, with a couple of key employees, or perhaps a representative from each department...a focus group if you will, and discuss Lost Revenue, or Lost Dollars as a result of "Missed Opportunities"? These errors of omission resulting from ineffective advertising, lack of training, improper inventory: parts/new and used vehicles, wrong people in place, hours of operation, etc., cause leaks in your retail operation which if filled can create hundreds of thousands of dollars in new revenue!</p>
<p> </p>
<p>This should be an interesting topic and I am eager to hear all of your ideas and thoughts on this subject!</p> Ford Tops Super Bowl Ads with Facebook Revealtag:www.dealerelite.net,2010-08-26:5283893:Topic:229722010-08-26T13:25:00.000ZHeather Wirtzhttps://www.dealerelite.net/profile/HeatherWirtz
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">I found this article - What are thoughts on this? Very innovative: </span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;"><br></br></span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Usually, new vehicles are unveiled at big marquee auto shows in places like…</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">I found this article - What are thoughts on this? Very innovative: </span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;"><br/></span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Usually, new vehicles are unveiled at big marquee auto shows in places like Detroit and L.A. But Ford seems to have done well to launch its Explorer crossover virtually, on social media.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">The reveal's physical occurrence was in the middle of New York City, on a faux hillside right in front of Macy's. But Jumpstart Media, a Hachette Filipacchi-owned network of auto-centric Web sites, says the real jaw-dropper may have happened online.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">The firm says the reveal of the 2011 Ford Explorer on Facebook caused a 104% increase in the number of people going to Ford Explorer pages in Jumpstart's network of Web sites on July 26, the day of the unveiling.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Ford took the unusual tack of unveiling the vehicle on Facebook, and subsequently doubled the daily users researching Ford Explorer across Jumpstart's online automotive shopping and enthusiast properties, compared to the average daily usage for the month of July, per the firm.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Jumpstart says the boom continued with successive daily improvements in usage versus the average, of 66%, 25%, 13% and 8% by July 30.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">The firm says that because of engagement during the Facebook reveal, Ford got a greater share of SUV shoppers across Jumpstart's 13 automotive shopping and enthusiast Web sites, including Vehix, Consumer Guide Automotive, JD Power Autos, Shopping.com Autos, Car and Driver, Road & Track, and U.S.News.com. The network says Ford's share of SUV shoppers grew by 52% on the day of the unveiling to become the most-researched SUV.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Joe Kyriakoza, VP of marketing communications at Jumpstart, said in a release that the Facebook effort managed to encourage a high volume of in-market shoppers to consider Explorer. Kyriakoza says that after trailing Grand Cherokee -- which also recently launched a new design for 2011 -- for most of July, Explorer soared ahead of it and the rest of the competition for the remainder of the month.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">Jumpstart also said the Explorer Facebook reveal did better than Super Bowl ads for other automakers. Ford outdistanced other automakers' share-of-shopping increases the day after they had run 30-second Super Bowl commercials this year. The firm says Super Bowl auto advertisers saw average share of shopping lift by 14%. But that was less than a third of Explorer's growth from the Facebook unveiling.</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;">"While it's unclear what Ford paid for the Facebook reveal, I'm confident it was nowhere near the cost of even one $2.5 million Super Bowl commercial," said Kyriakoza. "Ford's campaign clearly demonstrates that while traditional media can be highly effective in driving consideration, a well-executed and deeply influential online program can shift car shopping intent with immediacy and efficacy."</span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;"><br/></span></p>
<p><span class="Apple-style-span" style="color: rgb(0, 0, 0); font-family: 'Trebuchet MS'; font-size: 14px;"><br/></span></p> “Keeping it Lean” …a Discussion on Expense Controltag:www.dealerelite.net,2010-06-18:5283893:Topic:124422010-06-18T17:05:20.000ZNANCY SIMMONShttps://www.dealerelite.net/profile/NANCYSIMMONS
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><font color="#000000"><span class="huge1"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial">"Expenditures rise to meet income.</span></span><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial">”~ C.<span style="mso-spacerun: yes"> </span> <span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-FAMILY: Arial; mso-ansi-font-size: 14.0pt; mso-bidi-font-size: 14.0pt; mso-bidi-font-weight: bold">Northcote…</span></span></span></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><font color="#000000"><span class="huge1"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial">"Expenditures rise to meet income.</span></span><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial">”~ C.<span style="mso-spacerun: yes"> </span> <span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-FAMILY: Arial; mso-ansi-font-size: 14.0pt; mso-bidi-font-size: 14.0pt; mso-bidi-font-weight: bold">Northcote Parkinson</span></span></span></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000"> </font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000">What a profound statement!<span style="mso-spacerun: yes"> </span> Don’t we find when operating any type of business, the more we make, the more we spend?<span style="mso-spacerun: yes"> </span> Years ago, I worked with a General Manager who named him boat, “Just One More Deal” and this was because when a vendor came in to solicit a program or a service, after an enthusiastic presentation, he would sign up with the justification “Just one more deal will cover the cost”.<span style="mso-spacerun: yes"> </span> Well, when we entered a recession in the 80’s and the unit sales fell off, we found ourselves bound in all these contractual agreements and could not get out of the terms.</font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000"> </font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000">I am going to open up this discussion on expense control with inviting Doug Austin, President of Performance Management Group to discuss this in a little more detail.<span style="mso-spacerun: yes"> </span> I also invite all the members of Dealer Elite to contribute with a suggestion or a best practice as to how they cut expenses.<span style="mso-spacerun: yes"> </span></font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000"> </font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000">I will start with my first question regarding expense control…Who in your business is responsible for opening the mail??? It really should be the President, Operator, Comptroller, or someone with authority who will question each invoice, each piece of correspondence and ask the questions:<span style="mso-spacerun: yes"> </span> What are we purchasing here?<span style="mso-spacerun: yes"> </span> Do we really need it?<span style="mso-spacerun: yes"> </span> Can we get the same value cheaper from another vendor?<span style="mso-spacerun: yes"> </span> Have we negotiated the price with this vendor lately?<span style="mso-spacerun: yes"> </span> Does it have a purchase order?<span style="mso-spacerun: yes"> </span> Was it authorized?<span style="mso-spacerun: yes"> </span> Are we in a contract with this vendor?<span style="mso-spacerun: yes"> </span> When does the contract come up for renewal and do we have to write a letter of intention to terminate ahead of time?<span style="mso-spacerun: yes"> </span> And so on…..</font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000"> </font></span></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span class="bodybold1"><span style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: Arial; mso-bidi-font-weight: bold"><font color="#000000">Okay…I started it…Let’s keep it rolling!!!!!</font></span></span></p> Service Absorptiontag:www.dealerelite.net,2010-06-18:5283893:Topic:124142010-06-18T15:35:06.000ZNANCY SIMMONShttps://www.dealerelite.net/profile/NANCYSIMMONS
<p>Clayton asked my opinion on Service Absorption and I will give my opinion as a Comptroller and call upon an expert to contribute to the topic. My good friend JIm Washam who is in our group has agreed to respond as well.</p>
<p> </p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">Monitoring the service absorption rate and designing a business plan which includes setting goals to reach or maintain 100% absorption rate…</font></span></p>
<p>Clayton asked my opinion on Service Absorption and I will give my opinion as a Comptroller and call upon an expert to contribute to the topic. My good friend JIm Washam who is in our group has agreed to respond as well.</p>
<p> </p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">Monitoring the service absorption rate and designing a business plan which includes setting goals to reach or maintain 100% absorption rate or better is crucial while optimizing a plan to achieve maximum profitability and growth in all departments.</font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000"> </font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">You will find that during the times in history when sales were good, service absorption was ignored and certainly opportunity for increased sales and gross in fixed operations was lost.<span style="mso-spacerun: yes"> </span> Historically, dealers came from sales backgrounds, and concentration on improving the service, parts and body shop sales and gross was lacking.<span style="mso-spacerun: yes"> </span> For the past couple of years, experiencing the decline in retail sales, many dealers were forced to take a harder look at their fixed operations and hence the “Service Absorption” <span style="mso-spacerun: yes"> </span>was reborn and played a significant role in the viability of the dealership.</font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000"> </font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">Service Absorption, (the gross generated from the fixed departments divided by the total overhead expenses), should be between 65 and 110% depending on the dynamics of the store.<span style="mso-spacerun: yes"> </span> The two main ways to improve that is to either increase fixed gross profit or reduce total overhead expenses, (total expenses, all departments).<span style="mso-spacerun: yes"> </span> In this discussion we will talk about increasing gross profit as there will be another discussion started on expense control today.<span style="mso-spacerun: yes"> </span> We can increase gross profit by increasing sales, or increasing gross profit retention, (the % of gross profit to the sales).<span style="mso-spacerun: yes"> </span> In the service department this would be accomplished by delegating the proper grade tech to the appropriate job based on level of expertise and pay grade.<span style="mso-spacerun: yes"> </span> Ex.) You don’t want to pay a $30.00 per hour “A” level tech to perform a competitive pricing maintenance item which is billed at $35.00 per hour.<span style="mso-spacerun: yes"> </span> To increase sales in service, the director or manager should concentrate on customer labor sales, by closely watching HPR, hours per RO, effective labor rate, (total customer labor sales divided by total billable hours),<span style="mso-spacerun: yes"> </span> customer retention, (it costs less to maintain YOUR own customer than marketing new customers), and more.</font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000"> </font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">Now let’s hear from Jim Washam…. Please feel free to add more to this discussion everyone and ask any questions you may have!</font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000"> </font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 14pt; FONT-FAMILY: Arial"><font color="#000000">Enjoy your weekend and Happy Selling!!!!</font></span></p>
<p> </p>