Is Your GM the Right GM for Your Bottom Line?

By Dennis McGinn from AutoSuccess

​Lots of folks suit up to look the part. Unless the general manager of your dealership looks the part and plays that role hard, though, with passion and an enduring commitment to excellence, your dealership will not be great.

GMs fill big shoes. They cover a lot of acreage in their responsibilities — staying atop of each requires structure, time management, planning, relational skills — and a strong competitive nature.

Like a good controller, the GM protects your assets. They keep the wheels on and the boat afloat — and the best ones also lead the charge.

Careful management, as prudent as it sounds to the ear, isn’t necessarily the management you want for your business. The industry is full of careful managers. They dip toes in the water. They solicit inventories of opinions. Meanwhile, amidst their pondering and evaluating, the horse leaves the barn, the window closes, the opportunity moves down the street.

Rust Never Sleeps

A great GM is a closer — sees opportunity and seizes it or directs others to do so. Is this your GM? Has your GM laid out a crisp and structured vision for your dealership? Has your GM prepared your staff to capture this vision? Is he or she an exhorter, a motivator — and a “helping hands” kind of GM?

The Peter Principle theory says “managers rise to their level of competence.” Contemporary sage Tommy Gibbs says great leaders never allow themselves to stay in their comfort zone because they recognize that getting comfortable is one step closer to failure.

It’s time to ask yourself — Is your GM the right GM for your bottom line?

GMs and Recon

Scroll down the GM’s job description. Right below “evaluating used car aging” is the most important and influential responsibility a GM can master: reconditioning oversight.

Really? Recon oversight is a dealer’s greatest opportunity to flow more margin to the bottom line and it is listed among the GM’s duties as… an afterthought? Does your GM see the potential here — one increasingly important as new car sales taper off and CPO and other used cars take center stage for the next few acts? Unless managed closely and activities accounted for carefully, the dealership recon function can become like the proverbial rug hiding all sorts of nasty, ugly things like:

  • Patterns of appraisals that buy for too much or require extensive recon to retail profitably.
  • Retail labor and parts and other departments that brush some cost burdens off onto recon.

GMs Say…

In too many dealerships, recon is still run by spreadsheets, whiteboards and seat-of-the-pants organization and accountability. Misplace a car on the lot or take too long to get it from intake to the sales lot and that sucking sound is your money rushing down the drain.

Recon is a complex part of your business — more so than many GMs and their principals want to recognize. However, hundreds of dealers know now that, when operated using proven time-to-market (TTM) recon workflow technologies and tactics, recon centers:

  • Achieve regular three-to-five-day time-to-market cycles. When first starting the use of TTM software, many dealers assume their recon cycle is already three to five days; the software instead shows them to be operating at a costly eight- to 15-day cycle instead.
  • Reduce recon times. Cutting recon time by 2.5 days increases inventory turn by one. Shave five days and gain two turns. What might two additional inventory turns a year mean to your bottom line?
  • More cars sold at higher margins within the magic 30-day window.
  • It’s not just me claiming these advantages. It is also visionary GMs and dealers who understand the writing on the wall and who take action:

    • “If the GM isn’t involved in one of the highest profiting departments in the store, you might have the wrong GM,” said Tom Dunn, general manager for the Fred Martin Superstore in Barberton, Ohio.
    • If you don’t care about improving reconditioning, why should your staff?” said Edward Hyde, dealer principal of the Legacy Auto Network in London, Kentucky.
    • "I’m talking major amounts of money to the bottom line, the kind of money that would make you sick if you knew you were missing out on that,” said Joe Seppa, GM of Morrie’s Nissan, Subaru and Bodyworks in Brooklyn Park, Minnesota.

    GMs who give the right priority to recon enjoy faster TTM, reduced friction among associates and, because they get cars frontline ready faster, improve inventory turn and gross margin.

    Is your GM the right GM for your bottom line?

Views: 1071

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

Damian Boudreaux posted a blog post

Value Your Company

We want you to be profitable and proud of what you do. We want you to have all the success that you…See More
5 hours ago
Black Book posted a blog post

Stable Market Except for Luxury Vehicles

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car…See More
7 hours ago
Cory Mosley posted videos
9 hours ago
Walter McNulty posted a status
"If you are in need of any of our services please contact me today! www.pdsforyou.com"
9 hours ago
John Sternal posted blog posts
10 hours ago
Erik S. Nachbahr posted a blog post

Helion Technologies Becomes a CIS SecureSuite Member

Timonium, MD –­ May 21, 2019 –­ Helion Technologies today announced it has become a CIS…See More
11 hours ago
Simon Hopes posted a blog post

3 Tips to Sell Luxury Cars on the Internet

Luxury cars is a consumer good present on the wish list of much of the population, currently the…See More
15 hours ago
Walter McNulty posted a status
"Booking Staffed Events for June and July set your dates today. Call 443-521-6384"
yesterday
Crystal Hartwell posted a blog post

Rplate, World’s First Digital License Plate and Winner of Best New Product Award, Featured at CONNECTIONS Conference May 21 - 23

Reviver demonstrates its award winning Rplate at Connected Car Corner, by InstallerNet, in San…See More
yesterday
Bill Wittenmyer posted a video

Witt's Wise Words: There Are No Subs In Life

Bill Wittenmyer explains why life isn't a professional sport in which we can make substitutions in this episode of Witt's Wise Words.
yesterday
Profile Icon via Twitter
RT @Automotive_News: Nissan's credit rating hit by negative outlook https://t.co/YUxGEKiPY7 https://t.co/AqBA20iP1w
Twitteryesterday · Reply · Retweet
Walter McNulty posted a status
"If you are looking for a Huge June call today to team up with Preferred Dealer Solutions"
yesterday
Walter McNulty posted videos
yesterday
Profile Icon via Twitter
RT @ChrisBSaraceno: Good #parenting is a cornerstone in #mentorship. This is especially the case towards teaching kids between handling tea…
TwitterSunday · Reply · Retweet
Profile Icon via Twitter
RT @ChrisBSaraceno: Spending an "industrious" Sunday soaking in the sun and some truly valuable life lessons with the #TheoryOf5 at the leg…
TwitterSunday · Reply · Retweet
Profile Icon via Twitter
TwitterSunday · Reply · Retweet
Profile Icon via Twitter
RT @womendrivers: As consumer behavior has an impact on the vehicle models manufacturers are producing today, women consumers also have a h…
TwitterSunday · Reply · Retweet
Profile Icon via Twitter
RT @SGivens02: "As the leader or one of the leaders of your dealership, you know that you are someone who influences the individuals and gr…
TwitterSunday · Reply · Retweet
Profile Icon via Twitter
RT @DaveAnderson100: You don't need others to believe in you, your abilities or your dreams. It's nice, it's not necessary. You know who yo…
TwitterSunday · Reply · Retweet
Dave Anderson's blog post was featured

Be the Coach Your People Deserve

Ken Blanchard called feedback the “breakfast of champions,” and rightfully so, because we all need…See More
Sunday

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service