Many dealerships today are finding it difficult to have profitable body shop operations. Costs are soaring in paint and materials as well as environment disposal fees. The future will see these costs building so Managers must have controls in place to minimize costs where we can.
1: Controlling paint and material costs.
To begin let’s understand body shop supplies must be tracked by…
Added by Rob Gehring on May 31, 2011 at 7:48am — No Comments
I’ll never forget one time when I was driving down a highway and noticed several state troopers alongside the road in an old service station. One stepped in front of my car and flagged me in to the parking area. The officer quickly walked around my vehicle checking all of my turn signals and headlights. He also quickly checked tire condition and the emergency brake function. He did use me to turn the switches and push the brake and the…
ContinueAdded by Rob Gehring on May 17, 2011 at 10:00am — No Comments
One of the best things we can do to prevent a poor performance month is to have strong margins in our fixed operations. If your overall parts department gross profit as a percentage of sales is below 35% place some attention to your margins. My suggestion is that parts gross profit margin to service customers is at 42%. Use of a parts matrix program might need to be used to achieve this result. I recommend a matrix…
Added by Rob Gehring on May 11, 2011 at 6:41pm — No Comments
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…
ContinueAdded by Rob Gehring on May 6, 2011 at 10:03am — No Comments
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