AUTO PUNDITZ
  • Team Auto Punditz

LIFE BEYOND ONLY NEW CAR MARGINS: AUTO DEALERSHIP EARNING OPPORTUNITIES AND HOW TO MAXIMISE EARNINGS

A few broader guidelines, that can help you in your better strategy and decision-making. All auto dealerships will be rearing to go during the post-pandemic lockdown scenario. All want to make the best of the given window and are scared when we would experience the next lockdown. Hence, it's important that we get our revenue contributors right the first time, to ensure there is no loss of opportunity in the earnings. We will be covering all departments : SERVICE / ACCESSORIES/ SALES/ INSURANCE/ SPARES/ ACCOUNTS/ FINANCE / VAS/ SCRAP ETC… FIRST, such article is for sales: revenue head wise contribution. Below is a broad guideline, on how much each revenue head should be contributing to your total revenue from sales.

This would help ensure :

  • Each source of revenue is maximized

  • No dependency on any one source of revenue

  • Optimization of each manager’s work

  • Define/ redefine KRA of each team member in the team

  • Better planning of resources.

While the above are broader guidelines to help you work towards each parameter, there can be minor variants between the categories. The longer-term earning opportunities are not calculated in the above table, these are immediate realization opportunities.

Should you need any help in formulating the strategy/formats/data points for your dealership, we would be happy to help.