SO WHAT HAPPENED?
Here’s what contributed to the December numbers: 1) The dealership was light on trained unit sales staff; 2) The sales manager was out; 3) The dealership’s F&I sales person is struggling and dealing with some serious personal issues; and 4) Florida was off year over year for the brands carried by the dealership. (Click chart for a larger view.)
“Thank goodness we had $14,000 compared to $1,600 last year in gross profit on wholesale business (in additions on composite), or we would have lost money in December,” Shenk said.
He remains optimistic. “I feel confident moving forward into 2013,” he said. “We have solid management in all three departments and each of those managers is making good progress (especially parts and service) in surrounding themselves with great teams.”
EDITOR'S NOTE: The Dealer LAB project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting firm run by Bill Shenk, detailing his efforts to return a Florida powersports dealership renamed Destination Powersports to profitability. The financial information in this report is taken from the dealership’s Composite Report supplied by Shenk and is prepared as part of the dealership’s participation in the PowerHouse Dealer 20 Group. The Composite Report is produced from the store’s monthly financial report. In preparing these Dealer LAB reports, Dealernews reviews the dealership’s unaudited P&L statement and Balance Sheet and its Composite Report.
Bill Shenk is owner and 20 Group moderator of PowerHouse Dealer services, a dealership 20 Group provider and consulting/training company. He has worked full time in the industry since 1976. If you are interested in joining a PHD 20 Group, contact Shenk at 877-PHD-0911 or Bill@phdservices.com.
This story originally appeared in the Dealernews March 2013 issue.