Last month we explored the TBOC 2009 year-end numbers. This month we’ll look at how February 2010 compares with February 2009. I have shown the TBOC numbers for both years, as well as the comparable National Norms (NN) from our other groups. In some cases, the different reporting systems used by these 20-groups are not totally comparable. In those instances, I have entered "N/A."
Are things getting better? If some recent 20-group member e-mails are any indication, yes, they are improving for many dealers. This should be reflected in the coming month’s data comparisons.
There are some improvements in the Total Store (Chart 1), particularly in the TBOC groups. However, these groups are still showing much higher personnel expenses than the National Norms groups. Conversely, the National Norms groups spent a lot more per unit to reduce inventory.
Chart 2 shows new and pre-owned unit margins improving significantly for TBOC members. Overall, pre-owned margins are very strong. I keep saying this is an area of opportunity for many dealers, and for good reason.
Although F&I numbers in Chart 3 are not what they were a few years ago, this is still an important profit center for our business. Note that finance penetration is still the issue. You need to approach your local credit unions if you haven’t already. They have money and are very aggressive in many markets. If they aren’t interested today, keep going back, as things change rapidly. Put together a good lender packet. You need to sell them on your business.
In Chart 4 you can see dealers are focused on improving their service margins. This needs to be run as a very tight ship in order to be profitable. P&A margins are slipping a bit. Some dealers are becoming more competitive with Internet prices, as they can’t afford to let people walk. Many dealers are using specially priced accessories and/or clothing packages as incentives for closing unit sales.
As I said last month, track your numbers, keep inventory and overhead under control, hire the right people and provide exceptional customer service. These are still the keys to success.
At GSA we track benchmarks through our involvement with dealer 20-groups. The TBOC data comes from the groups that are in the a real-time, web-based data reporting system. National Norms are compiled from the groups that report in the former-RPM data system.
Misconceptions About Digital Retailing
They’re not buying online — they’re shopping.
One of the effects of the COVID pandemic is that it sped up the evolution — and adoption — of digital retailing services. If they didn’t already before, consumers now expect to be able to research, purchase and have delivered almost everything from the convenience of a phone. Especially in light of how the automotive industry responded to the pandemic, with at-home test rides and easy online selling through sites like Carvana, whether you like it or not, consumers now expect the same of powersports dealerships.
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Destination Dealership: I-90 Motorsports
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Why Do Dealers Become Dealers?
Sometimes, you’re left wondering, why do we do what we do? I’m sure there are varying answers.
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Advances in PWC Technology
Integrated digital technology, use-specific functions and electric PWCs are the major focuses for OEMs today.