All Blog Posts Tagged 'gross' (46)

It's Only Words and Words Are All I Have

Todays

“Tested Sentence That Sells” 

This and future postings on the topic are not about philosophies or basic business principles but about those concrete words to say in customer interactions that greatly enhance the likelihood of closing a deal.

I’ll be sharing with you “Tested Sentences” that have been proven to be the most effective in getting us in auto sales into the fast lane on the road to a sale, and when…

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Added by Mike Stoner on May 9, 2012 at 12:53am — No Comments

What is now?!!!

As a child when your parents asked you to do something, it meant now!!! When you were asked to do something in school, it was right now!!!

If you truly understand people today, we live in an instantaneous gratification society. People decide on something, they want it now!!! Not only now, do they decide to spend money, buy…

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Added by Tony Provost on February 29, 2012 at 1:14pm — 15 Comments

What A Difference One Word Can Make

"Insanity: Doing the same thing over and over again and expecting different results." - Albert Einstein

 

"Practice: Doing the same thing over and over again and expecting BETTER results." -  Mike…

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Added by Mike Stoner on August 11, 2011 at 2:30am — No Comments

Was Your Last Month Defined By Two Words?

Was your last month defined by these two words…”If only”?



“If only…”



The Dealer Principal



“If only” I had asked my Managers “What is your plan for

increasing Profit this month?” and held them accountable for their replies.



“If only” I had taken a walk every day and made it my

mission to talk to Sales and Service Customers, introduce myself and say “Is

there anything I can do to help you today while you are here at our

Dealership?”



“If… Continue

Added by Leonard Buchholz on August 3, 2011 at 7:00pm — 3 Comments

Celebrate with Accounts Receivable!

You can have wonderful gross profit margins and even show wonderful net profits on paper however without great processes on accounts receivable you will just have paper with no real value to celebrate with. For those of you with a large amount of aged receivables and the desire to take action start by calling your customers with old balances and offer a discount to pay using a credit card.…

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Added by Rob Gehring on August 2, 2011 at 4:31pm — No Comments

A recent study of Fixed Operations and what it reveals about Service Sales, Profitability and more...

Recent studies show that Service Advisors that hand out menus during the write up process experience an increase in Customer Maintenance Sales. The study also shows that this corresponds to an increase in the Service Advisors pay.



These recent studies also show that Technicians that completed a Multipoint Inspection on every vehicle flagged more hours than Technicians who did not. An interesting side note to the study, Technicians who completed the most Multipoint Inspections made the… Continue

Added by Leonard Buchholz on May 23, 2011 at 5:30am — No Comments

Getting the Most From Your Parts Department

If a General Manager had 50% of new or used car inventory aged at over 7 months without a sale, life would not be pleasant. Many dealerships have this concern in their parts department and are not even aware of it. Let’s look at some operational guidelines that will improve your parts department in every aspect. Every month end should generate a parts summary report that is given to the parts manager. This report contains some valuable information most General Managers never see. An…

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Added by Rob Gehring on May 6, 2011 at 10:03am — No Comments

Helms Brothers Mercedes-Benz Triples Gross Profit with NCM® Associates

Overland Park, Kan., May 2, 2011 ― NCM Associates, a leading provider of retail automotive 20 Group services, Education, Retail Operations Consulting and the originator of the NCM Benchmark® for Success program for automobile dealers, today announced that Helms Brothers Mercedes-Benz has tripled its gross profits through the implementation of the Mercedes-Benz Pre-Owned Profit Improvement Program under the guidance of NCM…

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Added by sara callahan on May 2, 2011 at 11:24am — No Comments

The 7 Measurables and the Financial Statement

There are 7 Measurable and Improvable Key Performance Indicators that every Fixed Operations Director/Service Manager needs to be aware of.



They are RO Count, HPRO, Labor Gross Margin, Parts Gross Margin, EFL (Effective Labor Rate), Total Gross Profit and Total Net Profit.



When you have a constant update on these measurables and a mandate to improve their numbers you can have a really impressive Financial Statement at the end of the month.



Think about what a 10%… Continue

Added by Leonard Buchholz on March 30, 2011 at 2:05pm — No Comments

Volume or Gross?

After a decade in the automotive business, I've heard mixed emotions about which is more important. Now obviously, they both are. What am I talking about? VOLUME or GROSS!

 

It comes down to 3…

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Added by Mike Myers on February 28, 2011 at 10:30am — 30 Comments

When is Enough...Enough?

When is enough...enough? If you are in Fixed Operations, this question is surprisingly easy to answer.



NEVER!



There is never enough Gross Profit. In fact, when was the last time you and the Dealer Principal sat down in the office and he or she took out the latest financial, looked it over and then said to you "Go ahead and close the service drive and take the rest of the month off. We have enough Gross Profit!"



There is never enough Service Absorption. We live in an… Continue

Added by Leonard Buchholz on January 12, 2011 at 4:30pm — No Comments

John Q. Service Advisor

John Q. is a underachiever at ABC Motors. His HPRO is at .9 and his Gross Profit Margin is below 70%. Now, John Q. is not necessarily a bad guy. In fact, he is a likeable and hard-working employee. He comes to work on time and believes he contributing to the overall success of the Service Department.



Johns current performance level is not acceptable. And the consequence of not taking action has verifiable results. Take a look at Johns numbers.



His current HPRO at .9 at the… Continue

Added by Leonard Buchholz on December 23, 2010 at 9:36am — No Comments

Service Absorption Rule #1

“Maintain your profit margins at 45% C/P Parts and 75% C/P Labor” says Don Reed, CEO of DealerPro Training Solutions.



Maintaining your profit margins is not always easy, and it’s not getting any easier! If you are struggling with profit margins, the first thing you must do is measure what you are getting.



The financial statement is the place to look. On your financial you will find month end data as well as year to date. What we want to take a look at it is the month end… Continue

Added by Leonard Buchholz on November 30, 2010 at 11:13am — No Comments

The Hundred Mile An Hour Goat

Two friends are out hunting, and as they are walking along they come upon a huge h*** in the ground. As they approach it they are amazed by the size of it.



The first hunter says “Wow, that’s some h***; I can’t even see the bottom. I wonder how deep it is.” The second hunter says” I don’t know, let’s throw something down and listen and see how long it takes to hit bottom.”

The first hunter looks around and spies an old automobile transmission lying in the grass. He tells the… Continue

Added by Leonard Buchholz on November 29, 2010 at 11:57am — No Comments

Just Because It's The Obvious Answer

I am constantly surprised at what people say when the answer they are seeking is the obvious one, it's simple and they don't accept it.

It's kinda like the Customer who is buying a car and you hit them right on the number on the first pencil... they look at you like you are screwing them! "It can't be this easy" they are thinking or "I'm paying too much."

In Fixed Operations it's the same. If a Customer needs a repair done and you go back to them with a repair that obviously…

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Added by Leonard Buchholz on November 17, 2010 at 5:29pm — No Comments

3 Ways Service Advisors Can Speed Up Service Sales

One of the most frustrating things that Service Advisors have to deal with is the unavailability of the Customer after they have left the Dealership.



In 100% of the cases there is a series of steps the Advisor can do during the writeup and repair process to increase the chances that they will be able to contact the Customer once the vehicle has been inspected or the repairs have been completed.



Step Number One.



Get a “Pre-Approval” amount. This is amazingly… Continue

Added by Leonard Buchholz on November 11, 2010 at 3:05pm — No Comments

The 100% Rule

100% of doing exactly the same thing next year as what you did this year will yield you 100% of the same results.



100% of Personnel in your Dealership who do not receive any Training will perform exactly the same next year as they did this year.



100% of the Processes you used this year to get the results you now have will give you exactly 100% of the same results next year.



100% of the of the Profit you made this year comes from 100% of the Personnel you… Continue

Added by Leonard Buchholz on November 4, 2010 at 3:38pm — No Comments

When to make the Hard Decisions in a Dealership

Every week I am in a Dealer and have found certain things to be true for those that are successful and those that are not.



In Dealers that are successful, they make the hard decisions.



The gather information, investigate, counsel with whom they need to and decide. Once that decision is made, it is broadcast to everyone it needs to be and implemented immediately.



In Dealers that are struggling, this process is broken.



Most often, they make no… Continue

Added by Leonard Buchholz on October 21, 2010 at 2:00pm — No Comments

Get "What You Expect" when you Crunch Your Service Numbers

“What You Expect”



(This is a follow on blog post from a previous post titled “Crunching Your Service Numbers.”)



This is part of the daily “Must Do” list for every Service Manager. You cannot go through the day without checking progress. To do so would be a sure recipe for disaster. Just ask the Captain on any ship or the Pilot of any airplane. They will not start the engines without a plan much less leave the harbor or take off from the airport.



As a Service… Continue

Added by Leonard Buchholz on September 20, 2010 at 1:44pm — No Comments

What Are The Consequences Of Not Taking Action?

Yesterday I had the privilege of addressing a room of Service Managers and Factory Personnel. And I have to believe that everyone in that room was there to find or gather some new information that would help them take action on something that might be causing them some problems at their Dealerships.



Why would you attend if you had no hope of getting something, right? I hope that everyone one of them got something that they can use right away at their Dealership this week, something…

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Added by Leonard Buchholz on August 13, 2010 at 7:00am — 1 Comment

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