I’m thinking most of you had a very good 2019.
Even though margins are being compressed, most of the reports I’m getting are that dealers are making more money than even when margins were high.
That being true would suggest dealers have gotten smarter and smarter when it comes to running more efficient operations.
Never in the history of the automobile business have dealers been as well informed and educated as they are today. If nothing else, technology has made it so much easier to figure things out.
The standard in the business has been that we should make at least 2% net profit to sales dollars generated.
If business has been as good as initial reports, and you didn’t make well above 2%, then you may need to re-evaluate what you did last year.
Dealers who made in the 4 to 6% range are in a far better position to weather a storm, than those chugging along in the average zone of 2% or less.
While I realize you did a lot of planning getting ready for 2020, you would be wise on a monthly basis to check off the following, regardless of where your percentage ended up in 2019.
10 Monthly Bullet Points:
1. Re-define and focus on your basics.
2. Evaluate your expenses monthly.
3. Stick to your used car and new car inventory turn timelines.
4. Evaluate the inventory on hand vs. anticipated selling rate.
5. Examine every process from front to back.
6. Don’t let legacy thinking control your thinking.
7. Don’t be afraid to fail; try something different.
8. Study the best of the best.
9. Seek to improve your leadership skills.
10. Don’t think you have it figured out because you don’t.
Last year is history. Learn from your history. Get better. That’s all I’m gonna say, Tommy Gibbs