In recent 20 Group meetings, I've noticed a renewed passion for evaluating expenses. The realities of the current market are apparent and expenses will need to be reduced in many dealerships to maintain the profit levels that dealers have become accustomed to in the past few years.
2017 has seen a flat or decreasing SAAR, challenging new vehicle front grosses as dealers chase manufacturer volume programs, wage pressure from current personnel, and potential interest rate increases, combined with higher inventory levels. All these create a need to analyze current expenses to find possible reductions.
NCM's current client base is producing an average net-to-sales of 2.6% through July 2017. This means that, to cover $1,000 of expense, a dealership must produce $38,461 in sales each month just to keep up.
Ideas to combat this have been shared in recent 20 Group meetings. Click on the image below for our Top 8 Expense Review Checklist and start reviewing in your dealership today.
2017 is still proving to be a great year for dealership profits. NCM wants to help dealers continue to produce to their highest capabilities; therefore, expense review is going to be necessary to get the result you desire from your dealership.
Invest in your own education. The car business is very different than it was a decade ago. Is it time to join a 20 Group and learn from your peers? If you're ready to take the plunge, give us a call at 800-756-2620 or email us at firstname.lastname@example.org to get the results you desire.