Your 10 Worst Sales Will Make You More Profit
When you finish one month, you’re ready to start a new one. You forget about those loser deals and hope you don’t run into them in the new month. Try this exercise to learn from those low Gross Profit deals and put into place policies so you know you won’t have the same problem next month:
For your Used Vehicles, pull the 10 worst Gross Profit deals from last month. Where was the disconnect between what we thought we should make and what we eventually earned? Analyze each deal using the table below. You may come up with some other reasons, which you can easily add to the chart. The reason for low Gross Profit will either be because of the acquisition of the vehicle or the actions that took place when selling the vehicle. Examine each possible cause to find the real reason, or reason the gross profit was low.
Take the lessons learned from this exercise to determine which policies and processes you will put into place (or “re-reinforce”) to minimize the number of low gross profit vehicles, while maintaining a low-aged Used Vehicle Inventory.
Bonus: If you find extra time, determine which used vehicles turned the fastest and yielded you the best gross profits. Then actively plan to add one more of that model to your inventory every week, so you can sell it the following week.
| Acquisition | Retailing |
|---|---|
| Amount paid for vehicle | Sold for below market |
| Reconditioning: Time, Certified, etc. | Merchandising |
| Source: Trade/off-lease/off-street/auction | Marketing |
| Trade Appraisal Process | Desking |
| Inventory Mix | Pay Plans |
| Turn Policy | Turn Policy |
| Accounting: Packs, Cost Adjustments | Training |
| Demand for vehicle | Sales Process |
Sharing ideas and business-proven solutions is just one of the benefits of using the Profit Blueprints® System. Each month we talk with Dealers and their Managers to discuss their opportunities and provide them with Dealership-proven solutions. The solutions are designed so your Managers create personalized action plans for under-performing areas in their Departments. For information on how we can help you and your Managers reach your goals with our No Risk Guarantee, call 877.316.7418 or email us at .
