| Sales Slump Drops Dealership Profits! |
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Controlling Costs
Check your uniform billing to see how many charges
are not necessary. Mats and fender covers can be
purchased for a fraction of rental costs! I have even
seen scents being rented for restrooms that could be
purchased for pennies on the dollar of the rental
expense. Another practice to look for is a charge for
uniforms when Technicians are on vacation. Shop
supplies should be tracked by Technician and look for
patterns of abuse. Management should ask questions
to the Technician looking for logic for excessive use
of supplies. Waste oil heaters should be installed to
reduce heating costs. These heaters have come a
long way and will pay out in a quick time.
Find out more....
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Greetings!
Dealerships are facing declining sales and margins
causing profits to be a challenge. It is likely sales will
be a challenge at least until March 2006. Now is the
time to aggressively work with fixed operations and
maximize profit potential. This month we will look at
ways to improve fixed coverage and operating profits.
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| Monitor Performance |
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Performance must be monitored to be sure results are
managed. Service must achieve good effective labor
rates, hour per repair order averages, and repair
order counts. Be sure to adjust needed repair rates
and menu items as needed to generate returns. Are
you losing sales with advisors not recommending
maintenance? Set goals based on attainable
performance from NADA guidelines or another source
that must be met. Be sure to include ways to achieve
these improvements with proper processes and
procedures.
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Read on... |
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| Extend Service and Parts Hours |
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Being closed all weekend is no longer an option for
dealership operations. Customer service must be the
focus instead of upsetting service and parts staff. A
good team player understands customer needs must
be met to accomplish company needs and produce
profits. This will add better use of the facility without
adding much in costs. It also will improve your Friday
performance with a fuller schedule without the fear of
a carry over all weekend.
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Read on... |
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