fbpx

Dealership Data for November 2009

November dealer numbers

 

The following article compares a representative sample of November 2009 versus 2008 Top of the BOC (TBOC) data.

In Chart 1, we see total store gross profit was up, but net was slightly down. The good news is that there was a net for November. This was a very tough month for most dealers, as evident by the revenue change from last year.

Notes:

 

PVS/PUS = per vehicle sold

TBOC = average of top 5 BOC members (based on store GP)

NOP = Net Operating Profit

NN or N Norm = National Norms (data compiled from multiple groups).

Chart 1

Chart 2 shows that most unit categories were up, preowned UTV in particular. Dealers are working harder to maintain margins in spite of inventory dumping. Regrettably, flooring PVS was also up. Most OEs are working to help this situation by reducing build plans, order quantities and even doing some inventory balancing in the field.

Chart 2

Note: Our Voyager 4 data reporting and analysis system is available for any dealership to use for a very nominal fee. For more information on our data reporting system, dealer 20-groups, on-site consulting or training, drop me an email at [email protected] or visit www.gartsutton.com.

In Chart 3, service labor margin has really come up. Service sales have improved for many dealers and the remaining techs are working harder. This effectively reduces the cost of goods sold (tech compensation) relative to revenue. There has also been a significant improvement in net profit per repair order.

Chart 3

Chart 4 reveals that F&I has taken a major hit during this recession. Two years ago dealers were "killing" the $500 benchmark. Now they are at $320 gross profit. The national norms are showing $370 year to date, a bit better, but not much. The main culprit is the decrease in finance penetration. Plus, financed deals have little extra room for add-on stuff. PPM decreased as dealers backed off due to high redemptions. Many dealers spent their reserves to stay alive while customers started using their PPM more. Take note of this. You must retain close to 80% of current potential PPM redemptions. Security systems look to be a growing product category. There are a lot of good products and consumers are buying them. Also, credit life has found new life (sorry).

Chart 4

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.

 

You May Also Like

Racer and Dealer Sponsorship Must Be a Two-Way Street

You’re better to have no racers than the wrong racers.

You’ve decided to sponsor a few local riders. There’s a motocross track nearby as well as a very twisty paved track and lots of off-road racing as well. I’m sure I’m not alone in having people of all ages wanting me to sponsor them. Usually, it’s someone who has done well locally — or thinks he or she will do well soon.

How to Respond to Digital Leads

Timing, presence and tools are all critical.

Digital leads
How to Attract, Retain and Develop Talent

This recorded AIMExpo education track features a panel of dealers discussing their hiring and retention practices.

MPN talent panel, AIMExpo 2024
How to Grow and Excel in Digital Retailing

This recorded AIMExpo education track discusses the world of digital retailing and why you need to be there.

MPN Digital retailing panel, AIMExpo 2024
NPA Pre-Owned Market Update: February 2024

Average wholesale prices continue to improve, reflecting dealer sentiment and demand for pre-owned.

National Powersport Auctions, NPA, Market Report

Other Posts

Establishing the Right Pay Plan for Your Dealership’s F&I Team

In an industry where skilled F&I professionals are in high demand, an attractive, fair and equitable pay plan becomes a key tool.

Motorcycle dealership F&I
Maximize Every Sale With F&I and PG&A

This recorded AIMExpo education track discusses how the bike is just the start of the sale.

MPN F&I panel, AIMExpo 2024
Elevating Your Sales Game Through Parts Packaging

Breaking down the art and science of a well-designed, customer-focused, profit-friendly parts package.

Unleash Your Experts: How to Be a Long-Tail Resource for Powersports Enthusiasts

Closing deals and providing service are a dealer’s bread and butter, but your dealership has far more to offer.

dealership employees