Digital Dealer - October 2019 - 18

D E A L E R OP S & M ANAGEM ENT: F ixe d o per at i ons

By Ed Kovalchick
CEO & Founder,
Net Profit Inc.

Budget - We Don't
Need No Stinkin'
Budget
Of course, some will
remember this oft-repeated and well-known
phrase in this title referring
to "Badges" as was featured
in a 1948 film The Treasure
of the Sierra Madre. Beyond
that, a variation was
repeated in some ten films,
various games, literature,
television, and even comics,

and now a reference in a
national automotive column.
Finally, it has been utilized
everywhere!
STINKIN' BUDGET

What brought budget up
was realizing how consistently many of my clients
tend to grasp only cursory
budgeting, acknowledged
primarily by the dealer and

maybe the in-name GM/
GSM, regarding major
food groups like variable,
personnel, and semi-fixed
expenses. Beyond that,
most don't really drill down,
and when I ask what their
budget goals are for particular associate positions, I get
a 'dunno' face followed by a
'ain't thought a-that' grimace.

THE DRILL-DOWN HERE ARE THE
QUESTIONS OF WHAT PERCENTAGE OF
THE BILL-PAYING MONIES SHOULD EACH
POSITION CONSUME?"

Since personnel expenditures, both individual and
related benefits of all profiles
and dimensions, eat up much
of the every department's
gross profit, getting into overall personnel costs is vital to
managing the bottom line, at
least as I see it.
A good for instance is a 45
percent maximum target for
overall personnel expense for
a fixed department, including
office distributions. Breaking it down into bites and
depending on the franchise
statement makeup, it may include some portion of pay for
people who don't work in the
department directly as well as
that portion of their benefits.
I haven't met a department
manager yet who understood
the actual what and why of
their statement's distribution
sequence, which may have
been conceived three office
managers ago. But they continue to take the hit anyway
- some don't even see any
of the numbers they are held
responsible for! However, I
understand that you may be
in the minority here, and can
rattle it off your distribution
package keenly, as well as
detailed explanations for the
amounts you are charged
and why, including that GM
you seldom see. Congrats to
you and the dealer.
CALC THIS

Beyond payroll distributions, the actual department
full and part-time support
staff get charged 100 percent
to a department as appropriate. The drill-down here
are the questions of what
percentage of the bill-paying
monies should each position
consume? Regarding service
18

OCTOBER 2019

D I G I TA L D E A L E R . C O M



http://www.DIGITALDEALER.COM

Digital Dealer - October 2019

Table of Contents for the Digital Edition of Digital Dealer - October 2019

Digital Dealer - October 2019
A Message from the Show Director
Stop This Leadership Foolishness
Build & Develop the Right Team — Your Success Depends on It
Evolution Revolution: A Word to Successors
Could You Use Another 1 percent in Net Profits This Year?
Budget – We Don’t Need No Stinkin’ Budget
DMS Conversion: Careful Planning & Management Are Essential
Interview with Monument Chevrolet
Digital Retailing Online Experience Versus In-Store Experience
10 Social Media Tips for Salespeople
Defining Your Advertising Target Is Your Best Brand Strategy
4 Secrets for Google My Business Success
How to Know if Your SEO Investment Is Paying Off
“Look, it’s not Rocket Science” By Anthony J. TaCito
A Balanced Approach to Customer Experience
The Power of Words
Value Is Important… So Are You Charging Too Much?
Digital Dealer - October 2019 - CT1
Digital Dealer - October 2019 - CT2
Digital Dealer - October 2019 - Digital Dealer - October 2019
Digital Dealer - October 2019 - Cover2
Digital Dealer - October 2019 - 1
Digital Dealer - October 2019 - A Message from the Show Director
Digital Dealer - October 2019 - 3
Digital Dealer - October 2019 - Stop This Leadership Foolishness
Digital Dealer - October 2019 - 5
Digital Dealer - October 2019 - Build & Develop the Right Team — Your Success Depends on It
Digital Dealer - October 2019 - 7
Digital Dealer - October 2019 - 8
Digital Dealer - October 2019 - 9
Digital Dealer - October 2019 - Evolution Revolution: A Word to Successors
Digital Dealer - October 2019 - 11
Digital Dealer - October 2019 - 12
Digital Dealer - October 2019 - 13
Digital Dealer - October 2019 - Could You Use Another 1 percent in Net Profits This Year?
Digital Dealer - October 2019 - 15
Digital Dealer - October 2019 - 16
Digital Dealer - October 2019 - 17
Digital Dealer - October 2019 - Budget – We Don’t Need No Stinkin’ Budget
Digital Dealer - October 2019 - 19
Digital Dealer - October 2019 - DMS Conversion: Careful Planning & Management Are Essential
Digital Dealer - October 2019 - 21
Digital Dealer - October 2019 - 22
Digital Dealer - October 2019 - 23
Digital Dealer - October 2019 - Interview with Monument Chevrolet
Digital Dealer - October 2019 - 25
Digital Dealer - October 2019 - 26
Digital Dealer - October 2019 - 27
Digital Dealer - October 2019 - 28
Digital Dealer - October 2019 - 29
Digital Dealer - October 2019 - 30
Digital Dealer - October 2019 - Digital Retailing Online Experience Versus In-Store Experience
Digital Dealer - October 2019 - 10 Social Media Tips for Salespeople
Digital Dealer - October 2019 - 33
Digital Dealer - October 2019 - Defining Your Advertising Target Is Your Best Brand Strategy
Digital Dealer - October 2019 - 35
Digital Dealer - October 2019 - 4 Secrets for Google My Business Success
Digital Dealer - October 2019 - How to Know if Your SEO Investment Is Paying Off
Digital Dealer - October 2019 - 38
Digital Dealer - October 2019 - 39
Digital Dealer - October 2019 - “Look, it’s not Rocket Science” By Anthony J. TaCito
Digital Dealer - October 2019 - 41
Digital Dealer - October 2019 - A Balanced Approach to Customer Experience
Digital Dealer - October 2019 - 43
Digital Dealer - October 2019 - The Power of Words
Digital Dealer - October 2019 - 45
Digital Dealer - October 2019 - Value Is Important… So Are You Charging Too Much?
Digital Dealer - October 2019 - 47
Digital Dealer - October 2019 - 48
Digital Dealer - October 2019 - Cover3
Digital Dealer - October 2019 - Cover4
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