BEST
Operators CLUB
By Steve Jones
Capitalize on Business Opportunities
W
e’ll be comparing April data from a good-performing metric 20-group with the National Norm (NN) numbers and the averages for the Top 5 dealers for this group in each category. Well, the total store sales figures are looking better than last month — at least for this group and for the Top 5 dealers. The NN dipped slightly. The Top 5 numbers can be a bit misleading when comparing year-over-year, since it could be a different set of dealers each year. What you can take away is that at least five dealers in this group made significant improvements in their sales over 2012. Total store gross profit margin is up across the board, and that is a good thing. Even so, the group is a bit off the pace for the target of 25 percent gross profit. The percentage of change numbers are interesting: the Top 5 continue to lead the way when it comes to getting more folks in their stores and capturing their information. F&I gross profit is up nicely from last year. One of the best ways to increase profits is to control overhead. Is your personnel expense as a percentage of department gross profit in the 20 percent range like the NN? If not, it could be a matter of selling more rather than reducing their compensation. Assuming you have the right person with the right aptitude and attitude, training may be the answer. OK, here are the key numbers to watch: per vehicle sold and per vehicle financed. You should be getting more than $400 in gross profit for every unit you sell and more than $800 for every one financed. This really drives home the necessity of having a business manager (F&I person) who knows how to convert
CHART 1 GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
2.3 mil.
3.6 mil.
2.8 mil.
2.4%
24.6%
-3.7%
Total Store Gross Profit Margin
23.2%
26.2%
25.3%
Gross Profit Margin Percent for Prior Year
20.8%
25.9%
23.7%
Total Store Stats Total Store Sales Year To Date Total Store Sales Percent of Change from Prior Year
Contribution to Total Store Gross Profit: Finance Dept.
12.2%
16.3%
14.3%
Logged Working Contacts: Change from Prior Year
-5.50%
23.80%
-1.50%
Financed Deals: Percent of Change from Prior Year
3.00%
41.20%
-5.80%
Door Swings: Percent of Change from Prior Year
-8.5%
21.8%
-8.0%
$35,566
$47,653
$40,986
GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
5.7%
49.5%
4.0%
Gross Profit per Employee Year to Date
CHART 2
Part 1 Finance & Insurance Dept. Stats for April 2013 – part 1 Finance Gross Profit Change from Prior Year
30.4%
18.6%
20.2%
Gross Profit Per Vehicle Sold
$256
$398
$413
Gross Profit Per Vehicle Financed
$684
$1,012
$793
Average Number of Customer-Facing Staff YTD
0.98
1.23
1.21
$65,275
$94,983
$80,276
GROUP NORM
TOP 5 DEALERS
Finance Penetration
55.2%
69.0%
Service Contract Penetration
Personnel Expense as a Percent of Dept. Gross Profit
Gross Profit per Employee / F&I Dept
CHART 3
Part 2 Finance & Insurance Dept. Stats for April 2013 – part 2
NATIONAL NORM
53.6%
32.0%
46.7%
30.5%
Prepaid Maintenance Penetration
6.8%
20.5%
12.2%
Physical Damage Ins Penetration
0.9%
3.0%
0.1%
Security System Penetration
0.2%
0.6%
1.1%
13.3%
32.0%
16.1%
Financed with Credit Life
0.9%
3.0%
0.6%
Financed with Credit Disability
0.6%
1.9%
0.0%
Financed with GAP
16 June 2013 | Motorcycle & Powersports News