Record rebound at Dealer LAB: 76 units sold in April

Publish Date: 
Jun 19, 2014
By Joe Delmont



NEW BUILDING INCREASES EXPENSES

Total expenses were up month-over-month by almost $15,000, but the biggest chunk of that increase -- about $9,500 -- was due to occupancy costs in the new building. Monthly increases in rent, compared to the first three months of 2013, have run about $8,500 (January), $8,500 (February), and $10,500 (March).

“Our basic cost of existence,” Shenk noted, “has gone up from $46,000 to $55,000 in the new store.” That includes all of the costs without the team expenses.

Floor traffic in the new store, as recorded in the guest register, seems to have taken a big jump over April 2013 when the dealership was operating out of its old facility in a poor retail location. Here are the numbers: guests, 153 vs. 115 last April; write-ups, 125 vs. 82, and closes, 95 vs. 62 last April. That’s a 33 percent increase in customer traffic.

Shenk notes that the guest register isn’t really a true indicator of traffic, but that “it shows the sales team’s ability to create relationships.”

The dealership has suffered through a lot of employee turnover this year in the very critical first quarter in its new location. In February and March, Shenk said he worked hard to build a new team. 

“Turnover is hugely expensive,” Shenk said. “But bad apples left in the box are more expensive.” 


EDITOR’S NOTE: The Dealer Lab project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting firm run by former dealer Bill Shenk, detailing his efforts to return a Florida powersports dealership to profitability.

The dealership has several lines, including Yamaha (MC, ATV, UTV and PWC), Kawasaki (MC, ATV, UTV, and PWC), Suzuki (MC and ATV), and Polaris (ATV, UTV and Victory).

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.

About Powerhouse Dealer Services: 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 powersports industry since 1976. Bill purchased his first dealership in 1987 and started PowerHouse in 2000. He purchased the "Dealer Lab" dealership to show the industry that even in these extreme times you can turn around a failing dealership by using the proper best practices. Eventually "Dealer Lab" will be used as a real world training facility for PowerHouse clients across the country. To join a PHD 20 Group and take your dealership to Top Gun status contact Bill at 877-PHD-0911 or Bill@phdservices.com.