Connect with us
Close Sidebar Panel Open Sidebar Panel

Business Management

YTD June 2010/2009 Data Comparisons

Advertisement

Last month, we looked at May numbers. This month, we’ll see how June 2010 YTD stacks up compared with 2009. These charts represent data averages compiled from top-performing members in selected groups.
    
Chart 1: Total store gross profit is continuing to rise as is net operating. Business is still slow, but these dealers have controlled their expenses and inventory. As a result, they are much more profitable. The sales department’s personnel expense and flooring expense per vehicle sold will continue to decrease as sales rise.

Click Here to Read More
Advertisement

Chart 2: Margins are rising across the board. Dealers are working every deal to hold gross progit as product availability continues to decrease. The loss of some of the more discount-oriented dealers has contributed. New PWC gross profit is improving as we go into the peak of the season. Pre-owned unit profits just keep getting better. Many dealers will be increasing their pre-owned inventory as new units get harder to find.

Chart 3: Finance penetration is still below 2009. Credit unions have become the primary local financing source in many areas — some are paying points, however they are expanding their F&I offerings. If you use them, complete the contracts in-house. Pre-paid maintenance is still a good product to bring customers back to your store. Some dealers are using outside suppliers to avoid maintaining reserve funds. GAP is also a viable product as are service contracts. Don’t lose focus in this area — you need the extra gross profit!

Advertisement

Chart 4 shows that service margins are pretty consistent. The cost of labor sales for service is tech compensation. This shows these dealers are holding compensation to under 30 percent of revenue. A 70 percent gross profit is necessary in order to pay for managers, service writers, shop supplies, overhead and other expenses.

Parts gross profit per vehicle sold is still very good when compared with the benchmark. These dealers are getting better margins on hard parts, but Internet pressure is hurting accessories and clothing margins.

Advertisement
Click to comment
Connect
Motorcycle & Powersports News