Those of You In Super Competitve Markets, How Do You Even Stand Out?

[ddavis]

Mike,

If he had a lot that was four times larger, I believe that he would take full advantage of it. Its all about making money and trust me that store does.

Consider your three largest variable expenses: Advertising, Interest (floor plan) and Salesman's compensation. By using the internet as the prime source of advertising (and most efficient) how does turn effect the bottom line? Can you see how you can manipulate the operation to control those expenses to your benefit?

Nothing clears the mind like a lack of alternatives. That is the position that my friend is in. Please understand that his gross profit is still respectable but it isn't his prime consideration. What does it do for your F&I department when you significantly increase sales? What about parts and service? At the end of the month, his net departmental profit is what matters. Average Gross Profit is just a predictor.

 

[ed.brooks]

I think that a big part of our success (were in northeast NJ) with the used cars is broadening our horizons with what to stock. I walk our competitions lots on a regular basis and have found that a number of them are stocking a lot of more banal stuff. I've found that, at least in our market, the typical "program cars" don't generate high gross.

Weve been doing rather well with oddball stuff, and the grosses are certainly higher.

Never forget, there is rare with a demand - these cars generally allow a much better gross than cars in plentiful supply.

And then there are oddball cars that no one wants - a lot full of pink Azteks would be rare and you would have a hard time getting out from under them.

Then there is the ULTRA RARE