Gross Profit - DealersEdge

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The Future “If I Don’t Change the Processes Affecting this Account WHAT WILL IT LOOK LIKE 6 MONTHS FROM NOW?” brooke@blueprintforprofits.com 1.877.316.7418 89 CONCLUSION! Brooke Samples, President Profit Blueprints,LLC brooke@blueprintforprofits.com 1.866.316.7418 www.blueprintforprofits.com Profit Blueprints, LLC Dealership-Proven Plans for Net Profit Improvement 90
Plan Like a Pro If Service Expenses High: Thought Starters Confirm expenses are posted to the correct department. Service Direct Personnel Expenses (without allocations or benefits) should be 30% or less. Are employee bonuses calculated correctly? Are pay plans based on productivity? Service Advisor pay plans should not be paid on Labor Sales—as Labor Rates increase Service Advisors get automatic pay raises. Service Advisors should be paid the same time period as Techs—not a draw, but the commission earned. Use sub-accounts to track expenses like advertising or policy. Ex: Advertising discounts, If Labor Gross Profit Retention Percentages are Low: Run daily exception report to confirm staff is not overriding the established prices. Paying Techs too much time for maintenance work that is sold at a lower rate. Solution to higher paid Techs doing low skilled work —pay a flat amount for certain jobs regardless of the skill level. Establish a precision labor rate 20% - 30% above door rate for work requiring highly skilled Techs. Dispatch the right work to the right Techs Any hourly or salaried Techs? How much are they really costing the Dealer per flag hour? If Sales per Repair Order are Low: Analyze the repair orders for vehicle age and mileage. If below 5 years or 75,000 miles the Dealership should focus on Customer retention. Higher mileage vehicles = higher dollar per repair order Do the Service Advisors use a maintenance menu to sell from—including benefits? Review the Multipoint Inspection process for gaps in performance either by the Service Advisor or the Techs. Is there a second effort (TO) process in place when the Customer says, “No?” Do the Service Advisors have enough time to follow-up with Customers (Average 10 –14 CP and Warranty R.O.s a day allows enough time, more than that the Service Advisors become order takers.) If Technician Productivity is Low: Are the right Techs getting the right jobs? Do the Service Advisors do a GOOD job at completing the repair order? Do we have a GOOD parts inventory to sell from? Are productivity goals set and monitored for Techs and Service Advisors (daily, weekly, monthly)? Do we confirm the Customers’ reservations? Are special tools, the necessary equipment, TSB and manuals easily accessible by the Blueprintforprofits.com © 2013 Profit Blueprints, LLC 1.877.316.7418
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 and 28: ONE TRANSACTION 1 Hour of Labor Sol
Page 29 and 30: ooke@blueprintforprofits.com 1.877.
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: Tracking Your Opportunities A B C D
Page 47: Plan Like a Pro If Parts Expenses H

Gross Profit - DealersEdge

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