Dealership Year-End Data

The following compares the year-end 2008 and 2009 National Norms data compiled and averaged from multiple GSA groups. We have included the H-D National Norms as well.

In Table 1 we see just how tough this year has been for both metric and H-D dealers. That said, H-D dealers still hold much better profits than metric dealers.

Table 2 shows why H-D dealers are pulling more profit: better new-unit margins. Also, although not shown, they are now pulling used margins similar to the metric dealers. This has not always been the case in the past.

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P&A sales margins are mostly higher for metric dealers with the exception of apparel. The H-D apparel permits both higher volume and margins based on the strength of their branding.

As we have stated in the past, the goal for service is to hold tech compensation (not including benefits) to 30% of revenue in order to achieve the 70% gross profit necessary to pay the bills. Metric dealers did a slightly better job here.

Use this information to see what you can improve in your dealership operation. Get a handle on every aspect of your business. Measure, monitor and manage it so you will be around when this thing finally runs its course.

Moving on, the traffic log data in Table 5 reveals the huge difference in floor traffic between metric and H-D dealers. It should be noted that there are significantly fewer H-D dealers. However, metric dealers do a much better job of closing the deals.

Please use this data to help you in the coming year. Our goal is to provide you with the road signs to guide you. It is vital that you begin to track these numbers so you can take control of them. Survivors are proactive, not reactive.