PHDS 20 Group Sales Snapshot

Publish Date: 
Jul 1, 2008

Logged phone calls: Up 15% from April '07

Logged sales guests: Up 31% from April '07

Logged sales guests receiving follow-up: 57% (49%)

Offers to "buy today" (write-ups): 39% (43%)

Write-ups that took delivery: 46% (67%)

Logged guests taking delivery: 18% (28%)

HOT LEADS*: 17% (19%)

Lost sales as % of sales (customers purchased elsewhere): 8.7% (5.7%)

New to used sales: 73% new, 27% used (71%/29%)

Gross profit/new vehicle sold: $910 ($1,082)

Gross profit/used vehicle sold: $1,078 ($1,187)

Flooring/new vehicle sold: $242 ($224)

F&I gross profit/vehicle sold: $403 ($449)

Net advertising/vehicle sold: $96 ($85)

Total unit sales: Down 18% from April '07

* Did not buy during visit but claim, during follow-up, to still be a "buyer"

Even though sales are down 18% vs. April 2007, business is still "OK to GOOD" with a few "GREATS" for those who have solid systems and qualified, well-trained employees. The most profitable dealers are logging 15% more phone calls, 31% more sales floor opportunities, and are following up (with callbacks) 15% more often than they were one year ago. The net result: Dealers were working harder in April, yet getting 10% fewer offers to buy. They also were selling for less gross profit than they were a year ago, although their selling costs (flooring and net advertising) have risen. It was also taking more effort to convince customers to buy, as evidenced by the 52% increase in number of shoppers that ended up making their purchases elsewhere. Advertising and flooring costs per new vehicle sold were both up, indicating that in April there was too much inventory in the field. — Bill Shenk

20 Group data contributed by PowerHouse Dealer Services ( www.phdservices.com ) and Victory Solutions ( www.victorysolutions.com).