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Grow Strategically

Grow Strategically. Percent of Total Store Gross Margin Contributed by Each Department 58 Dealerships, $479 million in sales, January 2010 to August 2011 Ordered by Units + F&I Departments Contribution Margin Rate. Grow Strategically by Hal Ethington ADP Lightspeed.

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Grow Strategically

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  1. GrowStrategically

  2. Percent of Total Store Gross Margin Contributed by Each Department 58 Dealerships, $479 million in sales, January 2010 to August 2011 Ordered by Units + F&I Departments Contribution Margin Rate Grow Strategically by Hal Ethington ADP Lightspeed  High focus on Major Unit Sales

  3. Percent of Total Store Gross Margin Contributed by Each Department 58 Dealerships, $479 million in sales, January 2010 to July 2011 Ordered by Parts Department Contribution Margin Rate Grow Strategically by Hal Ethington ADP Lightspeed

  4. Percent of Total Store Gross Margin Contributed by Each Department 58 Dealerships, $479 million in sales, January 2010 to July 2011 Ordered by Service Department Contribution Margin Rate Grow Strategically by Hal Ethington ADP Lightspeed

  5. Average $ Parts Counter Ticket 109 Dealerships, 19 months ended July 2011 Grow Strategically by Hal Ethington ADP Lightspeed 40% of dealers average $144 per Ticket 48% of dealers average $81 per ticket 6 % of dealers average $58 per Ticket <------ Dealerships ranked high to low ------>

  6. Average Gross Margin % Parts Counter Tickets 109 Dealerships, 19 months ended July 2011 10% of Dealers above 60% Gross Margin 27% of Dealers between 40 – 60 % Gross Margin 53% of Dealers between 25 – 40 % Gross Margin Grow Strategically by Hal Ethington ADP Lightspeed <------ Dealerships ranked high to low ------>

  7. Recast Low Group at High Group Rates for Average Parts Ticket and Gross Margin % (What If…?) Or, $9,600 per month per store.

  8. Hmm… Low stores, selling at the average rate of High stores, would (with no new customers) each produce $9,600 More per Store Per Month. in Gross Margin for the 19 months. Session Title

  9. Average Hours per Repair Order 84 Dealers, 132,000 Repair Orders, $82 million in Sales January 2010 - August 2011 Grow Strategically by Hal Ethington ADP Lightspeed

  10. Recast Low Group at High Group Rates for Average Hours sold per Repair Order (What If…?) Or, $7,500 per month per store.

  11. Marine Dealers Parts to Labor Ratio 84 Dealers, 132,000 RO’s, $82 million in Sales January 2010 to August 2011 Grow Strategically by Hal Ethington ADP Lightspeed

  12. Recast Low Group at High Group Rates for Parts to Labor Ratio on Repair Orders (What if…?)

  13. Hmm. Low Stores are currently selling 59¢ in parts for each $1 in labor. High stores are selling $1.70 in parts for each Labor dollar. If Low stores can improve to the High Store rate, they will sell $11.7 million more in parts, and earn $7.2 million more in margin. That’s $85,700 in 19 months per store, or $4,500 in margin per month. Session Title

  14. New Major Unit Gross Margin % 94 Dealers, $365 million in Sales January 2010 to August 2011 Grow Strategically by Hal Ethington ADP Lightspeed

  15. Recast Low Group at High Group Rates for New Major Unit Gross Margin (What if…?) Per Dealership Gross Margin up $11,200 per Month

  16. Low stores, selling at the average rate of High stores, would (with no new customers) each produce $11,200 More per Store in Gross Margin each month.

  17. Session Title Do the math…

  18. In Parts, from improvement in Average Ticket and Gross Margin %, you get $9,600 more Margin Per month Grow Strategically by Hal Ethington ADP Lightspeed

  19. In Service, from improvement in Hours per RO and Parts to Labor ratio, you get $4,500 more Margin Per month Grow Strategically by Hal Ethington ADP Lightspeed

  20. In Major Units, from improvement in Gross Margin %, you get $11,200 more Margin Per month Grow Strategically by Hal Ethington ADP Lightspeed

  21. Do The Math: Parts $ 9,600 Service 4,500 Unit Sales 11,200 Total Store: $ 25,300 In additional Gross Margin per Month. Grow Strategically by Hal Ethington ADP Lightspeed

  22. Session Title Do the math, …and take it home.

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