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How Independent Auto Groups Can Increase Profits - Part 3

How Independent Auto Groups Can Increase Profits - Part 3 Featured Image

Setting the right goals to increase sale profits.

Team DealerVERO Blog Author Photo Team DealerVERO - Aug 09, 2019

In Part 1 we talked about how to get into the right mindset about our dealership’s marketing and sales process. In Part 2 we learned the 4 key performance indicators we need to know about our store. Now lets put it all together.

First, let's get a refresh on our example store’s KPI’s:

  1. Monthly Visits: ~ 3,000
  2. Lead Volume: ~ 125
  3. Sales Closed: ~ 35
  4. F&I Products Sold Per Sale: ~ 1

Our store is closing 35 sales per month, and on each sale, they are selling one ancillary or protection product. This is a pretty typical independent auto dealership, and when we started working with this store, they thought they were doing the best they could do. Once they were in the right mindset, and we looked at their KPI’s, we found some easy areas of improvement.

Note: This is where you will want to communicate with your marketing provider or your marketing partner or your agent. They will be able to help you find these areas of improvement and structure a solid improvement strategy for your marketing efforts. If you don’t have a marketing provider or agent, we would be happy to discuss some of our proven strategies.

After a DealerVero specialist identified a few simple improvements to their process and marketing, we put together a simple strategy to increase the number of F&I products sold by one per sale on average. That’s it, just one. We helped them understand what today’s consumers are looking for in the F&I process and how to market products effectively. Here is what happened in the next 90 days:

 

Before 

After 

Products Sold Per Sale

1

2.25

Profit Per Product Sold

500

550

Avg Profit Per Sale

500

1238

Increase

0%

248%

Without changing websites, product vendors, sales process, we were able to achieve a 248% increase in profitability for each sale, but it doesn’t stop there. Now that the store has the proper process in place to increase their profits, we were able to help them increase their visits with a new website, improve their conversion rates, implement better lead tracking and attribution, and increase overall the number of sales they closed each month.

Now it’s your turn. Does your dealership have the right mindset, the right knowledge, and the right goals to continually increase your profits? While you see your competitors losing profits and complaining about how difficult it has become to stay in business, you will be laughing as you are hiring more sales staff, and increasing your marketing budgets. Contact a DealerVero specialist for a free getting started guide, and to discuss your plans to increase your profits today.

Independent Automotive

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