- One job that should be at the top of a dealership’s year end priority list is conducting a recap of 2014 financial performance with their accountant. The review will provide a comprehensive snapshot of the dealership’s financial position toward the end of the year. It also will lay the groundwork for the 2015 financial forecast and budget. This article discusses some of the financial ratios that demand especially close attention, including gross and net profit margins, fixed costs, inventory turnover and current ratio.
- This article looks at three strategic tax moves dealers might want to make before the end of the year: timing income and expenses, planning inventory carefully, and reviewing repair and maintenance expenses in light of recent IRS regulations. It also lists three main tasks a salesperson should accomplish during the critical first hour they work with a customer.
- It has been nearly two decades since the first vehicle powered by a hybrid gas-electric engine, the Toyota Prius, was introduced. The other major car manufacturers soon followed with their own hybrids and alternative fuel vehicles. This led some to predict that sales of vehicles powered by electricity, natural gas, hydrogen and other alternative fuels would soon overtake sales of traditional gasoline-powered vehicles. But so far, sales of green vehicles have yet to take off in the United States. This article discusses why this may be so, but looks at a number of factors indicating that green vehicles will become more, not less, common in the years to come.
- Family-owned businesses, including auto dealerships, have always been an integral part of the American dream. Successful dealer-owners use the pluses of a family-owned business to their advantage while overcoming the hurdles that come with running one. This article discusses those hurdles, such as potentially difficult relationships among family members and between family and nonfamily employees. Compensation and succession are two issues in particular that need to be addressed.
- While automobile sales have rebounded nicely in many areas of the country since the depths of the recession, there are still some regions where the market of car buyers is shrinking or small. For dealerships located in these markets, success often comes down to the ability to diversify. This article discusses a few creative ways that some dealerships have diversified in order to increase sales, revenue and profits. A sidebar notes several ways to grow market share.
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