I’ve come to realize that one of the greatest frustrations of dealers, general managers and sales management in general is average gross profit. The focus on average gross profit has its moments when it drives the management team nuts. I would suggest in some cases it caused the team to lose focus on what’s most important.
I’m not denying that we need to have a focus on average gross and I’m not denying that for a lot of dealers there’s room for improvement.
Having said that, I do believe many of you would be better served focusing on total gross and removing (Try it for the next 90 days) average gross from your vocabulary.
More often than not there’s an expectation of total gross for the used car department. The real goal should be how fast we can hit that number and beyond. The goal should be to pile up as much gross as you possibly can, as fast as you can.
Never forget you cannot spend average gross profit. You can spend total gross profit. That’s all I’m gonna say, Tommy Gibbs