Gross Profit - DealersEdge
Gross Profit - DealersEdge
Gross Profit - DealersEdge
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ooke@blueprintforprofits.com<br />
1.877.316.7418<br />
PROFIT POTENTIAL<br />
EXPENSE TARGETS<br />
Policy Expense / <strong>Gross</strong> <strong>Profit</strong> = %<br />
($3,300 / $100,000) x100% = 3.3%<br />
If last month we were at 5%, then we are doing better.<br />
If the target is 2%, then our policy expense is worse<br />
then top performing departments and we should<br />
examine it closely.<br />
59<br />
PROFIT POTENTIAL<br />
$3,300 / $100,000 = 3.3%<br />
If the Target is 2%, how much is our excess policy<br />
costing us?<br />
(Target % – Dealer %) x <strong>Gross</strong> <strong>Profit</strong> =<br />
How much we should Reduce our Policy Expense<br />
2% - 3.3% = -1.3% x $100,000 = -$1,300<br />
$1,300 x 12 months = $15,600 a year<br />
brooke@blueprintforprofits.com<br />
1.877.316.7418<br />
60
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