Dealer LAB Nov 2011: Net profit $190K YTD

Publish Date: 
Feb 13, 2012
By Joe Delmont

AS OUR DEALER LAB, Destination Powersports of Punta Gorda, Fla., prepares to complete its 2011 fiscal year, the numbers it has posted through November are on the positive side of the ledger.

For the first 11 months of year, the dealership reported a net profit of $190,740 before taxes. In 2010, for the nine months that Shenk operated the dealership — March through November — the dealership posted total sales of $2,898,378, a total gross profit of $791,791, and $6,573 net profit.

The difference was even greater between 2009 and 2011, when Shenk became involved. During this period, there was an improvement in net profit of $431,341, climbing from a loss of $240,601 in 2009 to this year’s profit of $204,354. “Net profit” is the operating profit before depreciation.

The dealership earned $26,380 on revenues of $482,513 for November, up 983 percent from the $2,436 it earned in November 2010 on revenues of $346,282 (scroll to last page for composite sheet).

If the dealership matches the performance it posted last November, it will break the $200,000 net income mark for the year on revenues of more than $4.91 million. In November 2010, the dealership reported a net income of $12,690 on $341,000.

In November, Destination Powersports sold 47 units, compared to the 34 it sold in November 2010. This included 17 used motorcycles, at an increase of 14 units. For the year, the dealership sold 430 units, up 82 units from the same period last year. Through November, the dealership sold 137 used motorcycles, up 59 units, or 75.6 percent, from the 78 it sold through November 2010.

“We had 55 percent more dollars in used inventory in
November 2011 than in November 2010."

“We continue to establish ourselves as a good place to purchase pre-owned bikes and as a dealership that wants to take units on trade,” Shenk says. “We had 55 percent more dollars in used inventory in November 2011 than in November 2010. At the same time, we are getting better inventory as well.”

The dealership wants to sell as many units as possible to increase its visibility in the marketplace, but it also must make money on every sale.