Its 2011... 34% to the Bottom Line... HAS TO BE DONE!!!

Don’t look back. Stop living in the past. The human body doesn’t have a rearview mirror, for a reason.  Capture the moment, it’s the selling season, 2011. Business is happening.  Are you pulling out all stops? People are out buying vehicles. This next 6 months, is going to be awesome. Are you closed?  Do you have a 90 day business plan? Are you putting together the most awesome spiff programs? I am talking, managers, sales staff, F&I, detail department, the whole team. Get sold be closed!!!

 

Structure your staff, inventory, advertising budgets, to bring 34% to the bottom line. How?  If you are not structuring, each department, gross to sales, on a daily basis, this is your wakeup call!!!  It is 2011, people. Sales, service, finance, parts, should know how much revenue; they are responsible for daily, every day. We sell and service automobiles; I am with you 100%. We are in the 100% service business that has to have a 34% bottom line, after paying everyone. Now, I am going to give you a name, Mark. His business is called A-Car. He will set you straight!!! When people, are given responsibilities, they perform.  Easy example, if the sales dept. has a $200,000 over head each month, to breakeven, take $300,000 divide that by 30 selling days, $10,000 a day. This will put you in the sales dept. at $100,000 profit.  NOW you are in the car business for 2011. This is imperative, that employees understand their part, to keep things rocking!!! 

Understand this; there are a lot of dealers who are going to make record profits over the next 6 months. Are you going to do what it takes, to be one of those dealerships?

In closing, the companies that make all the money work this type of program, every day, 30 days of the month. The ones that do OK are putting themselves at huge risk, if they do not adopt these types of business practices.  So become a 34% bottom line company. You will love the rewards that come with this business plan.

Have a great 6 months. I truly hope all of you exceed 34%. GET IT DONE!!!

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Comment by Tony Provost on June 21, 2011 at 10:24am

Kip, Thank you.

Comment by Tony Provost on June 21, 2011 at 9:35am
Chris- Thank you for the support. dE is an absolutely fantastic website. Congratulations to you and your partners.
Comment by Chris Saraceno on June 21, 2011 at 9:15am

Great information, I am going to share this with all our GM's at the Kelly Automtove group.

 

Comment by Tony Provost on June 21, 2011 at 8:55am
BC- The next 6 months are going to be HUGE, for the organized and profit orientated dealers. You get them focused my man, you will see big profits!!!
Comment by Tony Provost on June 21, 2011 at 8:52am
mb You are on it. Break it down and work the daily numbers. Mark @ A-CAR. 888-409-2227. He will take your financial statement, break it down to each individual dept. Put a 34% factor. Now you can see how much gross per employee is needed to get you their. This also helps you structure, to see if you are carrying too many or too few employees. This is a can't miss sure fire way to grow your store. GOOD LUCK!!
Comment by Marsh Buice on June 20, 2011 at 9:14pm
Tony, love the break down, when you break it down to small, daily, doable numbers, each person knows the role they play in each days "game" getting everybody on board is crucial. The daily numbers are smaller and don't look so daunting. Good job sir
Comment by Tony Provost on June 20, 2011 at 6:19pm

Mark- YOU are the man!

Comment by Mark Ludwig on June 20, 2011 at 6:15pm

Tony - Thank you for the kind words. A 34% net to gross is the TARGET, but you definitely have to get all departments on the same page.  The staff must understand how to structure the sale, convert it to gross and allow it flow to the bottomline.  Breaking it down into a daily goal is a great way for them to understand how much gross they need.

Comment by Tony Provost on June 20, 2011 at 5:21pm
RJ- You are RIGHT! The more you can take responsibility for the bottom line, the more PROFITABLE your company will get. Have a great close to the month.
Comment by Richard Jungkuntz on June 20, 2011 at 5:09pm

This same strategy would work wonders at our company. People understanding the bottom line and their role, will help them understand why  DAILY execution is imperative.

Thanks for the reminder!

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