MSRP and Retail Pricing may not be the same thing. One of the most common questions I am asked from new dealers, just getting into the business, has to do with MSRP (Manufacturers Suggested Retail Price) and why we would encourage dealers to charge more to the customer that what the manufacturers recommend. As I share with dealers, the Manufacturers Suggested Retail Price, is just that, a suggestion. It doesn’t mean that you must sell [...]
In the compensation programs we recommend, the tech is paid an hourly rate based on their level of experience and the dealership location. For example, in the Midwest, a C-level tech might make $8-$10 dollars an hour. A tech in the Boston area, however, might need to be paid $14-$16 per hour. You know your area and what you have to pay to get a technician at the various levels, so adjust accordingly. In the [...]
One of the most common questions we are asked at BCI is "How do I determine my labor rate?" For most dealerships, the process of setting a labor rate begins with calling all the competitors in the market, asking them what their labor rate is and then making sure that they are somewhere close to the competitors. In our company, we jokingly refer to this method as “pooling ignorance”. Why, you might ask, is this [...]
Have you ever stopped to think about what the core skills or competencies are that someone needs to know to run your business? As you are thinking about what it looks like for someone, other than you, to effectively run your business one day, this is a vitally important question to ask. Not long ago, I sat down at lunch with my mom and dad and we had this exact conversation. Asked them “What are [...]
When someone starts a business, they don’t always have the end in mind, but the end will always come. Complexities are inevitable when someone’s time ends at a company, especially if family is involved. One of the areas that can cause the greatest areas of conflict in a family business is what happens to the business after the current generation retires. I often joke that the goal in family business is that at the end [...]
Many of you are just like us: a family business. Maybe your kids aren’t in the business yet, but you hope that one day they will be. When I joined BCI, I did it because I needed a job. It wasn’t because I was necessarily passionate about what I was getting ready to do, but I was passionate about the paycheck I was going to receive. You see, being a part of BCI wasn’t my [...]
If you could add a feature to Google maps, what would it be? Hands down, mine would be an estimator of how long it takes to get somewhere with kids in the car. Seriously, if you have kids or have taken a child anywhere, you know that it takes almost 50% more time to get anywhere with kids. It is about having realistic expectations. When my husband and I decided to take our three children on [...]
When visiting with owners & managers, I like to ask them how they got started in their business. The stories I hear are diverse & interesting but typically most of the reasons they give have some commonality to them. For example, some started their business because they saw a need in their community, others began because they were passionate about the product or service they provide, and some simply stumbled into it! However, in the [...]
Almost every dealership, regardless of the products you sell or services you offer, historically have a slow time of year. As we travel the country working with dealers, we have seen all sorts of great ideas come alive as they work to keep their businesses afloat during the slow season and start the year in the black. One great way to keep a dealership busy (and profitable) during the slow season is the effective use [...]
Who is your typical customer? Do you know? Grab a piece of paper and write down the answers to the following questions about your “typical” customer. What is their gender? What is their average age? What is their favorite radio station? Got it? Now, next to that I want you to write your gender, your age and your favorite radio station. Do the two look anything alike? If you are like most owners or managers, [...]
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