Gross Profit - DealersEdge

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SERVICE TARGETS KEY EXPENSES RANGE Account Description Domestic/Imports Ford/Chrysler Personnel/Employment 50% - 30% - Advertising Expense * 3% - 3% - Policy Expense 2% - 2% - Supply Expense (net) 1% - 1% - Domestic/Imports Highline Company Vehicle ** 2% - 6% - * If used only for true advertising - not discounts brooke@blueprintforprofits.com 1.877.316.7418 57 PARTS TARGETS Account Description Personnel/Employment Advertising Expense * Policy Expense Supply Expense (net) Company Vehicle ** KEY EXPENSES 1% - Domestic/Imports 2% - * If used only for true advertising - not discounts ** If not a big Wholesaler brooke@blueprintforprofits.com 1.877.316.7418 40% - 2% - 1% - RANGE Domestic/Imports Ford/Chrysler 25% - 2% - 1% - 1% - Highline 6% - 58
ooke@blueprintforprofits.com 1.877.316.7418 PROFIT POTENTIAL EXPENSE TARGETS Policy Expense / Gross Profit = % ($3,300 / $100,000) x100% = 3.3% If last month we were at 5%, then we are doing better. If the target is 2%, then our policy expense is worse then top performing departments and we should examine it closely. 59 PROFIT POTENTIAL $3,300 / $100,000 = 3.3% If the Target is 2%, how much is our excess policy costing us? (Target % – Dealer %) x Gross Profit = How much we should Reduce our Policy Expense 2% - 3.3% = -1.3% x $100,000 = -$1,300 $1,300 x 12 months = $15,600 a year brooke@blueprintforprofits.com 1.877.316.7418 60
Page 1 and 2: Fixed Operations: Reading Your Fina
Page 3 and 4: LOTS OF NUMBERS! • Recognize when
Page 5 and 6: KEY PERFORMANCE INDICATORS Some KPI
Page 7 and 8: FINANCIAL STATEMENT SALES AND GROSS
Page 9 and 10: ONE TRANSACTION FINANCIAL STATEMENT
Page 11 and 12: PARTS TARGETS GROSS PROFIT % RETAIN
Page 13 and 14: SERVICE DEPARTMENT 68% 75% Increas
Page 15 and 16: SERVICE DEPARTMENT Decrease our Cos
Page 17 and 18: When Too Good is TOO Good Sales = $
Page 19 and 20: PARTS DEPARTMENT INCREASE OUR SELLI
Page 21 and 22: HOURS BILLED PER RO Labor Rate $100
Page 23 and 24: Gross Profit Per Hour Billed During
Page 25 and 26: FINANCIAL STATEMENT EXPENSES Listed
Page 27: ONE TRANSACTION 1 Hour of Labor Sol
Page 31 and 32: SEMI-FIXED Create Sub-Accounts Exam
Page 33 and 34: ONE TRANSACTION BALANCE SHEET Accou
Page 35 and 36: DAYS SUPPLY Calculate the Cost of S
Page 37 and 38: Where to Start GRADE THE PARTS DEPA
Page 39 and 40: END OF MONTH BEFORE FINANCIAL IS PR
Page 41 and 42: EMPLOYEE PRODUCTIVITY Number of Rep
Page 43 and 44: Tracking Your Opportunities A B C D
Page 45 and 46: Plan Like a Pro If Service Expenses
Page 47: Plan Like a Pro If Parts Expenses H

Gross Profit - DealersEdge

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