Creating a base of documentation in our dealerships typically causes the dealers we work with quite a bit of stress. Simply the idea of taking the time out to make sure the paperwork is in order can be incredibly overwhelming. As you think about the different ways you can provide increased clarity with documentation in your dealership, I would challenge you to start with just one area. Tackling all of the areas simultaneously may seem [...]
If you have been around our team at Bob Clements International for any length of time, you know we are fanatics when it comes to your dealership generating obscene amounts of money! In order to do that, you must have a business that meets your customers’ expectations throughout the experience. Wish as you may, your business can’t exist without your customers. Most of the dealerships we work with sell a high-quality product, provide excellent service, [...]
As I was talking to a dealer last week, he and his wife were lamenting on the mistakes they had made over the years in running their dealership and how they wished they could turn back the clock and have a do over. While I am sure most of us in life would like to do some things differently, the reality of where we are at has to do more with the mistakes we made [...]
While I don’t know of many owners that are excited about paying for insurance, in my years of experience working with dealerships, insurance is one area that most owners fail to evaluate properly each year based upon ownership changes or changes in increased or decreased levels of risk. While it might be tempting to evaluate insurance based upon the cost of the policy, it’s just as important to make sure that you have the right [...]
As we think about setting our goals over the next 90 days, let’s focus our attention next on whole goods, or the sales department. During season, if we miss the mark on this department, it is painfully obvious! We like to view the whole goods in a dealership as an apple tree. We plant the tree, through the sale of a piece of equipment. Then, we reap the benefits year after year in terms of [...]
The Parts Department is one of the most profitable departments for a dealership. Depending on the product mix the dealership sells, most parts departments that we work with make a 35% – 52% margin on their parts. The other reason that parts remains profitable and easily scalable is the fact that just one parts person can handle anywhere between $350,000 – $600,000 of parts on their own (again, depending on the mix). We see that [...]
For many of you, the season has slowed down and you are getting a chance to catch your breath for the first time. While it is important to grab some much-needed rest as you end your 2019 seasonal journey, it’s also the perfect time to reflect on the season while it is still fresh in your mind. This is the time that we begin working with the dealerships we consult with to get their sales [...]
It’s probably no surprise to most owners and managers, but typically, the biggest expense in a dealership are the people you employ. In the heat of the battle, when you feel the pain of needing another set of hands, it can be easy to justify adding another body to the dealership and another person to payroll. However, as you approach slow season, you may find yourself questioning the decisions you have made around adding the [...]
Have you ever had a terrible manager? I have, and my guess is you have too. Whenever the topic of management comes up, I can’t help but mentally go to all of the bad managers I have had. When I think about a terrible manager, I think of someone who micro-manages, lacks communication skills and motivates with fear. The first manager I had, in my first “real” job embodied all of those characteristics and often [...]
One of the most important jobs of a department manager is working to keep their team motivated. In the parts department it is even more important than in service and sales because of the amount of customer contact that happens daily. One unmotivated parts person can impact both your parts sales and your customers’ experience with your dealership. One of the simplest and most overlooked methods of motivating any employee is using goals and objectives. [...]