You probably fit into one of two categories. Either you are not happy with your average gross per unit or you are not happy with the volume of your used car department. In either case you also may not be happy with the total gross being generated.
Let me remind you that the only thing that is really important is how much total gross you are generating. I always say, “You cannot spend average gross profit. You can only spend total gross profit.”
It’s a contradiction to say to your staff that you expect both high volume and high gross per unit. They stay confused and frustrated when you keep pounding them over the head with this misdirection and sleight of hand marching orders.
I’m sure somewhere out there someone is making it happen on both ends, but it is certainly the exception and not the rule. So, you need to get over it. That’s not to say that in your store that you can’t do better with both than you are currently doing.
It’s a given that more than 80% of the people shopping a used car shop the Internet. If you think you are going to post high prices or no prices out on the Internet and traffic is going to show up, you are dead wrong. The Internet is a “game changer” for all of you, regardless of your new car franchise or set of circumstances.
You have to decide if you want to play the game. More importantly you have to decide if you want to win the game. It’s a game. There are winners and losers.
As Dr. Seuss said, “You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose.”
If you are going to improve volume, you absolutely must develop a sound acquisition strategy other than just going out and buying more cars. Without allocating the right resources and strategy then going out and buying more inventory is the kiss of death. All that’s going to happen is you’re going to have a lot of aged inventory a few months down the road.
Taking this leap into the volume world means rewriting your overall strategy from acquisition to staffing, pay plans, reconditioning, marketing, and pricing.
Failing to address any of these will result in frustration and poor production and you may find yourself worse off than you are right now.
The fastest way to happiness is an improved bottom line. The fastest way to improving your bottom line is to improve your volume. Improving your volume improves the business in all departments.
That’s all I’m gonna say. Tommy Gibbs