Dealernews - December 2009 - (Page 24) DEALERSHIP TURNS A PROFIT IN OCTOBER $55,000 turnaround led by summer training program BY JOE DELMONT 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. In July, he began putting his ideas into practice by taking over management of Florida Motorsports, which has stores in Naples and Punta Gorda, Fla. It lost nearly $1 million in 2008. Shenk will share data as he works to bring the business back to profitability. Our reports will cover all major operations, including, but not limited to: new and used unit sales, service, parts, apparel, accessories, F&I, personnel and marketing. Dealer Lab reports will be transparent; they’ll contain the good, the bad and the ugly. In Florida, the thunderstorms tend to dissipate in October and motorcycle riding picks up. That certainly seemed to be the case at our Dealer Lab operation. The Naples store posted nearly a $55,000 turnaround in profitability from September to October. Net income in October from operations, excluding an extraordinary legal expense of $5,500, was $34,400, up from a loss in September of $21,800. The renewed interest in motorcycles was obvious. New bike sales in October hit 28 units, a 33 percent jump from the 21 units sold in September. Total unit sales for the month were 82 units, new and used, up from 73 total units in September. Interestingly, the average price per unit sold dropped in October to $7,600, down from more than $9,400 the previous month. It’s also interesting to note that sales revenue from units sold dropped $57,720, or 9.3 percent, • And net profit was up $2,421 per day to $34,000. • Flooring is still way too high, some $8,000 more than it should be. But inventory was reduced by about $400,000. • Front end gross profit is still about $200 PVS (per vehicle sold) light, but that’s what happens when you’re driven that many business leaders miss. It’s not what you do today that improves this month’s performance; it’s what you did six months ago. “The sales training programs and the personnel moves we made in July,” Shenk says, “are paying dividends today. We didn’t make any substantial changes in October. We did the heavy changes in the early months, and we’re starting to see the results now. The beauty is that we’re not done. We have more to do.” On a side note, Shenk says that many dealers who talk with him wait too long to make changes. “They want to know what they can do this month to increase profits right now,” he says. “It doesn’t work that way. You can make changes today, but you shouldn’t expect to see the impact for six months.” The biggest change Shenk made at Florida Motorsports last summer was implant sales training throughout the store. “When you touch customers,” he says, “you get sales training. We don’t sell tune-ups, we don’t sell helmets, we don’t sell motorcycles. We sell the experience and the lifestyle. When your people do that, you can be successful.” Another huge step that Shenk took was to build an aggressive follow-up program to reach out to customers and noncustomers “It’s not what you do today that improves this month’s performance, it’s what you did six months ago.” — Bill Shenk month over month, in October to $559,455 from $617,175 in September. By comparison, October 2008 numbers had dealership sales totaling $68,000 less than in the same month this year, and there wasn’t any advertising in October 2009. The Naples store lost $32,644 in October 2008. Given this October’s net profit of $34,407, the store showed an improvement of $65,051 over the same month in 2008. Here are a couple of other numbers to note: • Sales were down by $1,260 per day, October over September. • But gross profit per day was up by $1,485 to $28,800. by inventory. “We could have had another $16,000 in gross profit, creating $5,600 more in compensation for the sales team and sending another $10,000 to the bottom line,” Shenk says. • Parts and Accessories is about half of what it should be, says Shenk. “That’s $24,000 short on gross profit, and it would have created $8,400 more payroll for the Parts and Accessories team while driving $15,000 more to the bottom line,” he says. What changes were made in October that caused the big turnaround? Very little, says Shenk, and that’s the exact point The Dealer Lab Group brought to you by eBay The Dealer Lab is a real-world service from DEALERNEWS DECEMBER 2009 DEALERNEWS.COM http://www.DEALERNEWS.COM Table of Contents for the Digital Edition of Dealernews - December 2009 Dealernews - December 2009 Contents From the Editors InBox Speed Read Joe Delmont The Lab Product Locator Accessories (General) ATV Accessories Electronics/Security Frames/Hard Parts Luggage Misc. Accessories, Sidecars, Transportation Apparel/Outerwear Business & Retail Products Replacement Items/Parts Oil & Chemicals Performance Products Tools Service Locator Alphabetical Listing of Companies Advertiser Index Customer Service Mike Vaughan Dealernews - December 2009 Dealernews - December 2009 - Dealernews - December 2009 (Page Cover1) Dealernews - December 2009 - Dealernews - December 2009 (Page Cover2) Dealernews - December 2009 - Dealernews - December 2009 (Page 1) Dealernews - December 2009 - Contents (Page 2) Dealernews - December 2009 - Contents (Page 3) Dealernews - December 2009 - Contents (Page 4) Dealernews - December 2009 - Contents (Page 5) Dealernews - December 2009 - Contents (Page 6) Dealernews - December 2009 - Contents (Page 7) Dealernews - December 2009 - From the Editors (Page 8) Dealernews - December 2009 - From the Editors (Page 9) Dealernews - December 2009 - InBox (Page 10) Dealernews - December 2009 - InBox (Page 11) Dealernews - December 2009 - Speed Read (Page 12) Dealernews - December 2009 - Speed Read (Page 13) Dealernews - December 2009 - Speed Read (Page 14) Dealernews - December 2009 - Speed Read (Page 15) Dealernews - December 2009 - Speed Read (Page 16) Dealernews - December 2009 - Speed Read (Page 17) Dealernews - December 2009 - Speed Read (Page 18) Dealernews - December 2009 - Speed Read (Page 19) Dealernews - December 2009 - Speed Read (Page 20) Dealernews - December 2009 - Speed Read (Page 21) Dealernews - December 2009 - Joe Delmont (Page 22) Dealernews - December 2009 - Joe Delmont (Page 23) Dealernews - December 2009 - The Lab (Page 24) Dealernews - December 2009 - The Lab (Page 25) Dealernews - December 2009 - The Lab (Page 26) Dealernews - December 2009 - ATV Accessories (Page 27) Dealernews - December 2009 - Frames/Hard Parts (Page 28) Dealernews - December 2009 - Luggage (Page 29) Dealernews - December 2009 - Misc. Accessories, Sidecars, Transportation (Page 30) Dealernews - December 2009 - Apparel/Outerwear (Page 31) Dealernews - December 2009 - Apparel/Outerwear (Page 32) Dealernews - December 2009 - Apparel/Outerwear (Page 33) Dealernews - December 2009 - Business & Retail Products (Page 34) Dealernews - December 2009 - Business & Retail Products (Page 35) Dealernews - December 2009 - Replacement Items/Parts (Page 36) Dealernews - December 2009 - Replacement Items/Parts (Page 37) Dealernews - December 2009 - Replacement Items/Parts (Page 38) Dealernews - December 2009 - Replacement Items/Parts (Page 39) Dealernews - December 2009 - Replacement Items/Parts (Page 40) Dealernews - December 2009 - Replacement Items/Parts (Page 41) Dealernews - December 2009 - Replacement Items/Parts (Page 42) Dealernews - December 2009 - Replacement Items/Parts (Page 43) Dealernews - December 2009 - Replacement Items/Parts (Page 44) Dealernews - December 2009 - Oil & Chemicals (Page 45) Dealernews - December 2009 - Performance Products (Page 46) Dealernews - December 2009 - Tools (Page 47) Dealernews - December 2009 - Tools (Page 48) Dealernews - December 2009 - Service Locator (Page 49) Dealernews - December 2009 - Service Locator (Page 50) Dealernews - December 2009 - Service Locator (Page 51) Dealernews - December 2009 - Service Locator (Page 52) Dealernews - December 2009 - Service Locator (Page 53) Dealernews - December 2009 - Service Locator (Page 54) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 55) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 56) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 57) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 58) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 59) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 60) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 61) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 62) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 63) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 64) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 65) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 66) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 67) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 68) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 69) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 70) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 71) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 72) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 73) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 74) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 75) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 76) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 77) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 78) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 79) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 80) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 81) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 82) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 83) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 84) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 85) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 86) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 87) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 88) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 89) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 90) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 91) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 92) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 93) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 94) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 95) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 96) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 97) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 98) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 99) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 100) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 101) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 102) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 103) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 104) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 105) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 106) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 107) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 108) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 109) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 110) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 111) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 112) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 113) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 114) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 115) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 116) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 117) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 118) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 119) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 120) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 121) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 122) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 123) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 124) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 125) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 126) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 127) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 128) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 129) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 130) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 131) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 132) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 133) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 134) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 135) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 136) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 137) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 138) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 139) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 140) Dealernews - December 2009 - Alphabetical Listing of Companies (Page 141) Dealernews - December 2009 - Advertiser Index Customer Service (Page 142) Dealernews - December 2009 - Advertiser Index Customer Service (Page 143) Dealernews - December 2009 - Mike Vaughan (Page 144) Dealernews - December 2009 - Mike Vaughan (Page Cover3) Dealernews - December 2009 - Mike Vaughan (Page Cover4) http://digital.dealernews.com/nxtbooks/advanstar/dn0910 http://digital.dealernews.com/nxtbooks/advanstar/dn0810 http://digital.dealernews.com/nxtbooks/advanstar/dn0710 http://digital.dealernews.com/nxtbooks/advanstar/dn0610 http://digital.dealernews.com/nxtbooks/advanstar/dn0510 http://digital.dealernews.com/nxtbooks/advanstar/dn0410 http://digital.dealernews.com/nxtbooks/advanstar/dn0310 http://digital.dealernews.com/nxtbooks/advanstar/dn0210 http://digital.dealernews.com/nxtbooks/advanstar/dn0110 http://digital.dealernews.com/nxtbooks/advanstar/dn1209 http://digital.dealernews.com/nxtbooks/advanstar/dn1109 http://digital.dealernews.com/nxtbooks/advanstar/dn1009 http://digital.dealernews.com/nxtbooks/advanstar/dn_gear2009 http://digital.dealernews.com/nxtbooks/advanstar/dn0909 http://digital.dealernews.com/nxtbooks/advanstar/dn0809 http://digital.dealernews.com/nxtbooks/advanstar/dn0709 http://digital.dealernews.com/nxtbooks/advanstar/dn0609 http://www.nxtbook.com/nxtbooks/advanstar/dn0509 http://www.nxtbook.com/nxtbooks/advanstar/dn0409 http://www.nxtbook.com/nxtbooks/advanstar/dn0309 http://www.nxtbook.com/nxtbooks/advanstar/dn0209 http://www.nxtbook.com/nxtbooks/advanstar/dn0109 http://www.nxtbook.com/nxtbooks/advanstar/dn121508 http://www.nxtbook.com/nxtbooks/advanstar/dn1208 http://www.nxtbook.com/nxtbooks/advanstar/dn1108 http://www.nxtbook.com/nxtbooks/advanstar/dn1008 http://www.nxtbook.com/nxtbooks/advanstar/intlmotorcycleshows_seriesguide0809 http://www.nxtbook.com/nxtbooks/advanstar/dn0908 http://www.nxtbook.com/nxtbooks/advanstar/dn_gear2008 http://www.nxtbook.com/nxtbooks/advanstar/dn0808 http://www.nxtbook.com/nxtbooks/advanstar/dn0708 http://www.nxtbook.com/nxtbooks/advanstar/dn0608 http://www.nxtbook.com/nxtbooks/advanstar/dn0508 http://www.nxtbook.com/nxtbooks/advanstar/dn0408 http://www.nxtbook.com/nxtbooks/advanstar/dn0308 http://www.nxtbook.com/nxtbooks/advanstar/dn0208 http://www.nxtbook.com/nxtbooks/advanstar/dn0108 http://www.nxtbook.com/nxtbooks/advanstar/dn1207 http://www.nxtbook.com/nxtbooks/advanstar/dn1107 http://www.nxtbook.com/nxtbooks/advanstar/dn1007 http://www.nxtbook.com/nxtbooks/advanstar/dn0907 http://www.nxtbook.com/nxtbooks/advanstar/dn0807 http://www.nxtbook.com/nxtbooks/advanstar/dn0707 http://www.nxtbook.com/nxtbooks/advanstar/dn0607 http://www.nxtbook.com/nxtbooks/advanstar/dn0507 http://www.nxtbook.com/nxtbooks/advanstar/dn0407 http://www.nxtbook.com/nxtbooks/advanstar/dn0107 http://www.nxtbookMEDIA.com
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.