EVEN THOUGH FLORIDA sales of new and used motorcycles through July were off by 1,861 units, or 19 percent, from the same period last year, unit sales at our Dealer LAB store in Punta Gorda, Fla., were up 19 percent, climbing to 202 units from 170 this time last year.
Destination Powersports’ July performance on unit sales was even better: Sales increased 38 percent, to 36 units sold from 26 units in July 2011. More importantly, gross profit on these units hit $71,497, up from $39,245 in July 2011. That’s a gain of $32,252, or 82 percent in a down market.
“The performance of our new sales team in July is even more impressive when you consider that motorcycle sales in our county were off 22 percent,” said Bill Shenk.
It’s interesting to look back one year ago and see what was going on at the dealership.
“The sales team was on probation, and they were saying that they were doing good, based upon market share,” Shenk said. “I didn’t agree; I thought we were short on staff and intensity/process. That proved to be the case.”
What's dragging down income? While unit sales were up by more than $183,000, or 89 percent, weak performances in Parts, Accessories and Service produced a net income of only $1,671, down from $6,218 earned in July 2011. The problem? An ongoing one: poor staffing, according to Shenk.
Sales of PG&A were down 52 percent in July. Last year, the average repair order (RO) included labor of $154 and P&A of $184.
(Click on the chart above for a larger version.)
This year, the labor number was about the same — $152 average per RO — but the average P&A slipped to $145, a drop of $3,159 in revenue. (Continued)