Here is the ANSWER your Profits in 2019 and beyond!
- If your dealership is like many others and has shrinking new car margins...
- If your pre-owned margins are also slipping...
- If your dealership has inconsistent and unobtainable factory objectives...
- If your Fixed Absorption Rate is less than 100%...
- If your Owner Retention is less than 85%...
Then you came to the RIGHT PLACE
Service & Parts business is YOUR ANSWER. Gross profit margins are “Rock Solid”. Owner Retention is “The Holy Grail” and now is the time to re-capture your Owner Base. But first you need to realize, there is a COST to ignoring this opportunity.… You ARE leaving hundreds of thousands of dollars on the table.
You MUST HAVE 100% ServiceAbsorption today in order to SURVIVE - and here's WHY?
According to April 8, 2019 Auto News NADA reported Light Vehicle departments reported operating losses for the first time since NADA began tracking in 2009. What most dealerships are experiencing or facing is the ONLY time they really make any money is if they hit their Factory Objective. The article is pointing out most dealerships suffer a Net Loss each month with the sales side selling vehicles at Internet prices. This is WHY if you are only getting 50-60% absorption –it’s very hard to make any significant money.
IF YOU ARE AT LESS THAN 100% ABSORPTION - YOU ARE AT RISK
IF YOUR OWNER RETENTION IS UNDER 85% - YOU ARE AT RISK
IF YOU ARE NOT TRAINING AND MEASURING ANDMANAGING THE SERVICE SIDE LIKE YOU ARE IN THE SALES DEPARTMENT - YOU ARE AT RISK.
And what happens if you just do nothing? If you just keep doing what you’ve been doing, HOPING you will hit the factory incentives which will carry you, hoping they are attainable, and hoping your sales team works hard this month.
Then you are leaving hundreds of thousands of dollars on the table by not investing in your service department. Isn’t it time you get things updated and in place and you no longer hear:“I have told them over and over again and they just don’t do it.” Or the worst situation, some big mega dealer comes in and either “buries you” or “buys you out.”
I’m sure this is not the way YOU intended for your business to be run.