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Dealerships need to look at the three major variable expenses and see how they relate to eCommerce. This is very important if you are getting 50, 60 or 70% of your busines through the internet.This is where the money is. A dealership that wants to cut the fat without getting into the muscle needs to be looking at Salesperson's Compensation and Incentives, Interest Floor Plan and Advertising. With the velocity approach (new and used), you are getting away from average gross profit with a new focus on departmental net. Not looking at those three accounts and determining how they can be manipulated to serve the cause is absurd. Over my career, I have spent weeks crunching number in those three. I could easily write a book on this subject. It would be the ultimate cure for insomnia.
Dealerships need to look at the three major variable expenses and see how they relate to eCommerce. This is very important if you are getting 50, 60 or 70% of your busines through the internet.
This is where the money is. A dealership that wants to cut the fat without getting into the muscle needs to be looking at Salesperson's Compensation and Incentives, Interest Floor Plan and Advertising.
With the velocity approach (new and used), you are getting away from average gross profit with a new focus on departmental net. Not looking at those three accounts and determining how they can be manipulated to serve the cause is absurd.
Over my career, I have spent weeks crunching number in those three. I could easily write a book on this subject. It would be the ultimate cure for insomnia.
