1 Key Performance Indicators: The "Keys" to Professional Dealership Management & Growth With Jeff Sacks, Jeff Sacks Auto Moderated by Mike Bowers, Executive Editor at DealersEdge Thursday, August 29, 2013 1 – 2:30pm ET Jeff Sacks is considered one of the premier experts in dealership operations. His accounting and business finance degrees, coupled with his practical "in the seat" operational experience, have allowed him to offer his unique insights to automotive clients worldwide for over 30 years. Jeff immigrated to the United States in 1977 and has immersed himself in car dealership operations since then. After having worked for a variety of dealerships he founded Jeff Sacks & Associates, a consulting company dealing with the needs of his automotive clients. Jeff merged his practice and became a principal with Dixon Hughes PLLC(formerly Dixon Odom), a leading automotive CPA firm, in 2001. In 2005, NCMAssociates, Inc. and Jeff Sacks finally merged after collaborating for many years on various joint initiatives, including the highly respected General Manager's Bootcampsm. In 2009, Jeff returned to his roots as operating President with Jeff Sacks & Associates in order to provide customized programs to his clients. Jeff has spoken before many organizations that have used him as a resource to improve dealership functionality as it relates to process improvements strategies, asset and expense controls, computer utilization, management information systems and other related topics. He has published many automotive specific articles and was the contributing editor to the Jeff Sacks Newsletter. Currently, Jeff shares his insights on and knowledge of the automotive industry in his bi-monthly Dealer Magazine article. Jeff Sacks Auto |Tel: (858) 273-8085 | Toll free: (800) 867-2160 |Fax: (858) 273-0876 http://jeffsacksauto.com
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Key Performance Indicators:The "Keys" to Professional Dealership
Management & GrowthWith
Jeff Sacks, Jeff Sacks AutoModerated by
Mike Bowers, Executive Editor at DealersEdgeThursday, August 29, 2013
1 – 2:30pm ET
Jeff Sacks is considered one of the premier experts in dealership operations. His accounting and business finance degrees, coupled with his practical "in the seat" operational experience, have allowed him to offer his unique insights to automotive clients worldwide for over 30 years.Jeff immigrated to the United States in 1977 and has immersed himself in car dealership operations since then. After having worked for a variety of dealerships he founded Jeff Sacks & Associates, a consulting company dealing with the needs of his automotive clients. Jeff merged his practice and became a principal with Dixon Hughes PLLC (formerly Dixon Odom), a leading automotive CPA firm, in 2001.In 2005, NCM Associates, Inc. and Jeff Sacks finally merged after collaborating for many years on various joint initiatives, including the highly respected General Manager's Bootcampsm. In 2009, Jeff returned to his roots as operating President with Jeff Sacks & Associates in order to provide customized programs to his clients.Jeff has spoken before many organizations that have used him as a resource to improve dealership functionality as it relates to process improvements strategies, asset and expense controls, computer utilization, management information systems and other related topics.He has published many automotive specific articles and was the contributing editor to the Jeff Sacks Newsletter. Currently, Jeff shares his insights on and knowledge of the automotive industry in his bi-monthly Dealer Magazine article.Jeff Sacks Auto | Tel: (858) 273-8085 | Toll free: (800) 867-2160 | Fax: (858) 273-0876 http://jeffsacksauto.com
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Key Performance Indicators - The ‘Keys’ to Professional Dealership Management
– Exceed 65% of total dealership costs– Total personnel costs are probably going to be increasing rather
than decreasing
• Dealership Posture: Drive Gross per Employee Higher:– Continually seek out and embrace great training– Rationalize/streamline staff alignment– Embrace appropriate technology – Insist on accountability
Gross per Employee SubsetsAverage per Month per Position
SALES:• Gross produced per salesperson• Gross produced per sales manager• Gross produced per F & I producerSERVICE:• Gross per technician• Gross per service advisorPARTS:• Gross per parts employee
Commentary: Statistical Data– Gross Profit Analysis: NEW –
Gross Profit per UnitNew Vehicles ($)
Penske Auto Group 2,807Lithia Motors 2,278AutoNation 2,007Asbury Automotive 1,987Group 1 Automotive 1,935Sonic Automotive 1,864Source: Stephens, Inc. – 2Q13 Auto Ranking
AutoNation 1,375Asbury Automotive 1,305Group 1 Automotive 1,188Sonic Automotive 1,116Lithia Motors 1,100Penske Auto Group 1,024Source: Stephens, Inc. – 2Q13 Auto Ranking
• Key Elements to achieving high Gross-to-Sales %:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Commentary: Statistical Data – New Vehicles: Days Supply –
InventoryDays Supply New Vehicles
Sonic Automotive 53Penske Auto Group 63Group 1 Automotive 67AutoNation 67Asbury Automotive 68Lithia Motors 76Source: Stephens, Inc. – 2Q13 Auto Ranking
Commentary: Statistical Data – Used Vehicles: Days Supply –
InventoryDays Supply Used Vehicles
Sonic Automotive 29AutoNation 30Group 1 Automotive 33Asbury Automotive 36Penske Auto Group 42Lithia Motors 51Source: Stephens, Inc. – 2Q13 Auto Ranking
Bias to Execute• Identify low hanging fruit and be cognizant of
your short, medium and long term strategic objectives
• Create a game plan that includes …..– Manager buy in– Employee buy in– Metrics to manage and monitor– Consistent tracking– Holding people accountable