YTD May 2010 / 2009 Data Comparisons

How May 2010 YTD stacks up compared with 2009.

This month, we’ll see how May 2010 YTD stacks up compared with 2009. These charts represent data averages compiled from top-performing members in selected groups.

Chart 1: This month we are finally seeing total store gross profit up where it needs to be — above 25 percent! Although they had a positive net last May, this year’s net operating profit looks much better.

Personnel expense as a percentage of gross profit is coming down as the gross profit moves up, and dealers hold a tight rein on expenses. The same is true of admin and facility expenses. Notice how everything changes when you put extra effort into increasing gross profit.

As predicted last month, the sales department’s personnel expense per vehicle sold is leveling out as sales rise. Flooring expense per vehicle sold is still high but lower than last month. Advertising per vehicle sold is leveling out as well.

Chart 2 shows the impact of the BOC’s efforts to increase gross profits. New motorcycle gross profit is up over 4 percent and new ATVs are up 3 percent. New PWC sales are finally showing a profit. However, pre-owned units continue to lead profitability in whole goods sales.

Chart 3 reveals that F&I is still just motoring along. This area will continue to be weak until the financial sources start to open up. These dealers are pushing very hard on service contracts. Seek additional financing sources, sell every product and work every deal for every dollar.


In Chart 4, we see that the focus on making service a profitable operation is paying off with increased gross profit. Parts gross profit per vehicle sold is down slightly, but very strong when compared with the benchmark. P&A margins continue to rise as dealers strive to maintain or increase profitability in this area.


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