Dustin Lyons
So here is a question that might help stimulate some ideas that can create some real value for dealerships. What do you do as management to help improve gross profit at your store? And I guess some more interesting comments might come through this post like what are you currently running per copy? And what does your store feel is acceptable in terms of gross. Are you more of a quality or quantity dealership? I have a few ideas regarding gross, because I had the top 5 highest grossing deals in our dealerships history. But I am curious to see what the rest of you do to help get a boost in profits, even if it is as simple as a weekend spiff. I sold Toyotas, so I am also interested to learn what the difference in gross is between mainstream brands like Toyota and more luxury brands. So if any one has any insight on that I am curious.
Kemick Larson
I am not in personnel management anymore, but working with Auto Trader's Trade-in Marketplace sets up for huge UAs if the process is followed and everyone is properly trained including management. This was with a Ford Dealer in the Pacific North West. And for the last part of the post, American makes have definitely held more invoice-up gross than working with Toyota, but have quite a bit more volume with the Toyota make than anything else I've sold! I have been working with ADMs, but I am not seeing a return in the internet department compared to the additional gross from floor customers.
mark rask
I run our internet dept. Gross is not nearly as good on that internet customer.....however we do a lot of volume
Christopher Murray
Gross profit is a relative term. When we take a car in on trade, for example, we add $350 to the cost, we run it through service, parts, body shop and dill up, at retail and then we mark it up $100 because we can and then the vehicle is priced to the market. If you measure all of that gross, of course, you have one number. If, and I assume this is the number you are after, you measure the sale price versus the "cost" to the sales department we average $1,600 PVR and we add another $1,277 of F&I gross PVR but we are a Used car store and our cost is not known to ANY employee other than myself and my partner. We are a true one-price store. I say true because under no circumstance ever do we discount the car, we do not "throw in" spare keys, mud flaps, floor mats, etc... nor do we change the trade offer......imagine that sports fans? No variation from our policy under any circumstances!
mark rask
Christopher, Great thoughts. How long have you been a one price store?
Christopher Murray
This location is new but the company has been one-price since 2006.

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