Drive to Success: Fight Margin Compression with Improved Operational Efficiency

Auto dealers have heard it again and again: People are buying cars, yet margin compression continues to chip away at dealership profits. In some cases, dealers are selling automobiles at a loss! Could a growing focus on operation efficiency really be the path to profitability? Are there hidden centers of income within your business waiting to be optimized? Read more:

1 – Are You Losing Money Across Your Operation?

Digital Dealer: Dealers can’t live on a 1.5% gross profit margin. Instead, take a look at the first part of this efficiency series to prepare for the seasonal “Must Do’s” at your dealership.

Read More

2 – Selling New Cars Proves Unprofitable For Most Auto Dealers

Forbes: The average new car is selling for a $735 loss at most dealerships. Compressed margins are forcing dealers to look for other sources of income, and fast!

Read More

3 – How Can a Company have a Negative Gross Profit Margin?

Investopedia: We often hear a lot of talk about margin compression in the auto industry. But, how well understood is this key metric? Do you know the ins and outs of margin compression?

Read More

4 – Auto Dealers Losing Money on Operations, NADA Says

Automotive News: Dealers are focusing on areas of the business that can more easily turn a profit. According to the National Automotive Dealers Association, the majority of dealers are cutting costs in areas such as advertising and even parts and service.

Read More

5 – Is Your Dealership Declining in Market Share and Profitability?

Aimyes: While dealerships are selling more vehicles, the bad news across the board shows very little profit. Here is a list of departments where operational efficiency could improve your profits to combat shrinking margins.

Read More

 

Subscribe To Our Blog

Sign up today to receive updates on the latest news.

Please enter a valid email address.

Subscription Successful!