Everyone in the dealership, should understand turning cash quickly, is very important!! This, in my professional opinion, is extremely important to all dealerships. Everyone can take responsibility. The quicker the cash is in, the easier it is to run these money eating businesses.
Some helpful tips:
What time does your FedEx or overnight carrier come? Get every delivery you can get in, before they pick-up. Make sure every deal is in the office, even if he has to wait. If there is a late pick-up box, and you just had a delivery, get the office to bundle up the deal, get someone to that late box. When there is urgency, there is production.
No matter the time, trades must be stocked in immediately, if it is a retail piece, in the shop, cleaned, and on the frontline in 30 hours. Wholesale piece, stocked in, and cleaned by 12:00pm the next day. Right now, I feel you should have a wholesaler or wholesalers, buy every trade, immediately, that is wholesale. This is important. Make a deal with one wholesaler that you trust and who has a big checkbook. Place every car, this creates fantastic cash flow. Make the wholesalers understand, checks every day, regardless of titles in house or payoffs. Use your closing skills!
Every new car should be off the lot within, 60 days in my opinion. We mark every new car that hits 45 days; we pay an additional 35 dollars in commission, for these cars. You are better off paying your employee, then the bank. Do not let them hit 60 days. Swap them out, get them off the lot.
This is a gross issue. How many times are we doing deals without the trade? We must make sure on the paperwork, subject to final trade appraisal. When the vehicle arrives, let’s go outside, open it all up, and let the customer go over the vehicle with us. If you use your charisma, this will never be an issue. Agree outside, if anything changes, put it on the paperwork. Appraisals on site; get involved, with the salesman and the customer. Let the customer sell their vehicle to you. Embrace Kelly Blue Book, N.A.D.A. and Edmunds. Have fun with this process. In my professional opinion, this is where you will pick up a lot of your gross. Remember, K.B.B., N.A.D.A. and Edmunds do not print checks.
Get everyone to get credit cards upfront. Call customers throughout the day, explain the job is complete, and get payment over the phone. It can be done. We have our customers trained, to do business this way. Employees, do a great job, when trained in this manner. All of our work orders in service are paid within 12 hours, from the completion of the job.
When your team truly understands the velocity of money, they will perform better. They are always closing. They do take more ownership, which is great for everyone. So get to working on that cash flow!!!
Great business practices are here to stay regardless of any economy!!!