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If a dealership wants to seriously look at controlling expenses, it isn't in saving a dollar on pictures. The key of cutting the fat without getting into the muscle is in the three largest variable expenses:Salesperson's Compensation and IncentivesInterest, Floor PlanAdvertisingHow do these expenses relate to eCommerce? If a dealership is getting 50, 60 or 70% of their business from the internet, they need to address how these accounts can be manipulated to serve the cause. For any dealership that has made the leap to the velocity approach, they need to have their heads buried in these three. Think about it. You are getting away from the "old school" focus on average gross profit to departmental net.I could easily write a book on this subject. I will call it the ultimate cure for insomnia.
If a dealership wants to seriously look at controlling expenses, it isn't in saving a dollar on pictures. The key of cutting the fat without getting into the muscle is in the three largest variable expenses:
How do these expenses relate to eCommerce? If a dealership is getting 50, 60 or 70% of their business from the internet, they need to address how these accounts can be manipulated to serve the cause. For any dealership that has made the leap to the velocity approach, they need to have their heads buried in these three. Think about it. You are getting away from the "old school" focus on average gross profit to departmental net.
I could easily write a book on this subject. I will call it the ultimate cure for insomnia.
