For the nine months ending Sept. 30, earnings were off by more than $36,000,compared to the same period last year. Total revenues were up, however, increasing to $4.2 million from $3.7 million in 2011.
Unit sales of new and used machines rose from 343 units last year to 440 units in the first nine months of 2012, an increase of 97 units, or 28.3 percent. By comparison, the Motorcycle Industry Council (MIC) reported a 1.3 percent increase in total U.S. motorcycle unit sales for the first nine months of 2012. This is considered outstanding showroom growth and is driven by a combination of good people and good business practices, says Bill Shenk. “We have not changed our processes in sales,” he says. He commends a strong sales manager “who is proactive and driven. To be up nearly 30 percent YTD is really strong, even in a robust growing marketplace — especially when you consider the fact that our PVS [Profit Per Vehicle Sold] gross is still at Top Gun level.”
The market in Florida is down considerably for the brands sold by Destination Powersports. That means the dealership has increased unit sales by nearly 30 percent, while maintaining margins, in a slow market this year.
BUSINESS ‘DONE RIGHT’
In addition to good people, business done right creates more good business, something the dealership is emphasizing this year. “We still have not done any traditional advertising, and have cut back on the money we are spending on electronic marketing, and it has not hurt our growth,” Shenk says. It is evidently not practical for the dealership to advertise because the store would not be able to handle the additional business. “If you grow too fast, it can backfire and cause you to go backward in the near-term,” Shenk notes.
For the first nine months of 2012, gross profit basically was at $989,419 this year compared to $987,645 last year. But total expenses this year were up by about $48,000 over the same nine-month period in 2011: $880,006 over $832,342. For the nine-month period, the big revenue gainers were Sales, up nearly 30 percent, and F&I, up 17.1 percent. Even though total F&I revenue has increased, considering documentation fees, F&I is down from $432 PVS to $428 PVS and is an area of future opportunity that Shenk’s team is addressing. (continued)