Digital Dealer - March 2018 - 40
By Ed Kovalchick
CEO and Founder,
Net Profit Inc.
// Fixed Operations
If You Are Losing
Your Donkey -
Check This
A male donkey or ass
is called a jack, a
female a jenny or jennet;
a young donkey is a foal.
Jack donkeys are often
used to mate with female
horses to produce mules;
the biological "reciprocal"
of a mule, from a stallion
and jenny as its parents
instead, is called a hinny:
Donkey - Wikipedia
I open with this impolite
sham to get the attention
of those mates suffering
from financial fibromyalgia. Too many are not
producing the individual
department net profit
results needed to sustain
the operation. Rather, a
losing division is surviving
because a neighboring
branch is thriving and
essentially paying the
loser's bills - hard to be
proud of that amigo.
PROFIT RECIPE
Yet, producing a
reasonable net profit
isn't rocket science, or
even earth science as
far as that goes. It's a
combination of attaining
target margin structures,
employee productivity,
market penetration,
expense controls, and
proper staffing. The
results of these five vital
ingredients make up a
successful or not profit
recipe, and to complicate
it further just mucks the
view. And this applies to
any typical auto dealership department front
and back - and even the
rental/leasing ops.
Now, here's the reality
when the numbers are in
the proverbial tank: The
"management history" of
a department determines
how difficult and how long
it will take to structure
and successfully conduct the "fix." Here are a
couple actual bodyshop
situations I have encountered.
CASE ONE: After an
analysis of the overall
situation I discovered
that two of eight technicians were not producing
effectively, thus the eight
cylinder bodyshop was
running on six cylinders,
creating a substantial
production deficit of some
25%, which just happens to be the amount
of target profit. Also, we
had low compression on
another cylinder because
this cylinder missed a lot
of strokes by being late
constantly, as well as
randomly not showing up
(you know who I'm talking
about).
We managed to rev
up the troops by first
replacing the malfunctioning cylinder with a high
compression insert, then
setting "minimum or else"
standards for the remaining two, who suddenly
became quite productive.
Continued on pg. 42
40
MARCH 2018
D I G I TA L D E A L E R . C O M
http://www.DIGITALDEALER.COM
Table of Contents for the Digital Edition of Digital Dealer - March 2018
Digital Dealer - March 2018
Contents
What Are You Offended By Today, and What’s It Costing You?
How you Receive and Utilize Data in This Marketplace Determines Your Success
A Mystery Shop for a Major National OEM
It Takes Two: Who is Buying All of These Dealerships?
3 Fundamentals to Push Your New Vehicle Performance, Profitability
Mastering ‘Experiential’ Marketing!
Digital Dealer 24 Conference & Expo Speaker Highlights
Wes Lutz, Owner Extreme Chrysler- Dodge-Jeep-Ram
If You Are Losing Your Donkey – Check This
Big Data Busted 3: How Large Auto Groups Can Win With Better Data
From Self-Driving to Personal Robot: 5 Ways the Car of the Future Will Change Your Life
Facebook Betting Big on Auto: Tailored Solutions to Industry Challenges
Digital Dealer - March 2018 - CT1
Digital Dealer - March 2018 - CT2
Digital Dealer - March 2018 - Digital Dealer - March 2018
Digital Dealer - March 2018 - Cover2
Digital Dealer - March 2018 - Contents
Digital Dealer - March 2018 - 2
Digital Dealer - March 2018 - 3
Digital Dealer - March 2018 - 4
Digital Dealer - March 2018 - 5
Digital Dealer - March 2018 - What Are You Offended By Today, and What’s It Costing You?
Digital Dealer - March 2018 - 7
Digital Dealer - March 2018 - How you Receive and Utilize Data in This Marketplace Determines Your Success
Digital Dealer - March 2018 - 9
Digital Dealer - March 2018 - 10
Digital Dealer - March 2018 - 11
Digital Dealer - March 2018 - A Mystery Shop for a Major National OEM
Digital Dealer - March 2018 - 13
Digital Dealer - March 2018 - 14
Digital Dealer - March 2018 - 15
Digital Dealer - March 2018 - It Takes Two: Who is Buying All of These Dealerships?
Digital Dealer - March 2018 - 17
Digital Dealer - March 2018 - 18
Digital Dealer - March 2018 - 19
Digital Dealer - March 2018 - 20
Digital Dealer - March 2018 - 21
Digital Dealer - March 2018 - 3 Fundamentals to Push Your New Vehicle Performance, Profitability
Digital Dealer - March 2018 - 23
Digital Dealer - March 2018 - Mastering ‘Experiential’ Marketing!
Digital Dealer - March 2018 - 25
Digital Dealer - March 2018 - 26
Digital Dealer - March 2018 - 27
Digital Dealer - March 2018 - Digital Dealer 24 Conference & Expo Speaker Highlights
Digital Dealer - March 2018 - 29
Digital Dealer - March 2018 - 30
Digital Dealer - March 2018 - 31
Digital Dealer - March 2018 - 32
Digital Dealer - March 2018 - 33
Digital Dealer - March 2018 - Wes Lutz, Owner Extreme Chrysler- Dodge-Jeep-Ram
Digital Dealer - March 2018 - 35
Digital Dealer - March 2018 - 36
Digital Dealer - March 2018 - 37
Digital Dealer - March 2018 - 38
Digital Dealer - March 2018 - 39
Digital Dealer - March 2018 - If You Are Losing Your Donkey – Check This
Digital Dealer - March 2018 - 41
Digital Dealer - March 2018 - 42
Digital Dealer - March 2018 - 43
Digital Dealer - March 2018 - Big Data Busted 3: How Large Auto Groups Can Win With Better Data
Digital Dealer - March 2018 - 45
Digital Dealer - March 2018 - From Self-Driving to Personal Robot: 5 Ways the Car of the Future Will Change Your Life
Digital Dealer - March 2018 - 47
Digital Dealer - March 2018 - Facebook Betting Big on Auto: Tailored Solutions to Industry Challenges
Digital Dealer - March 2018 - Cover3
Digital Dealer - March 2018 - Cover4
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