How to put another $56k in profit per month into your dealership
F&I departments have been traditionally a major profit centre for auto dealers. In recent years, macro and micro industry changes have forced many dealers to relook at the role and contribution of F&I.
As dealers look at business cost structures with an eye to the future, uncovering ways to reduce operational costs and improve business efficiencies will be critical in maintaining profit levels.
For over 10 years Op2ma has been helping dealers get higher returns from their F&I departments and has identified a number of key factors that negatively impact sales volume and business profit.
Many of these are driven by inherent inefficiencies in selling F&I – such things as multiple and unconnected systems, lots of manual paperwork and forms, poor digital transaction capability, and poor workflow between sales and F&I.
There are many more.
Dealers can close most of these gaps by utilization of the correct technologies, which can reduce business operating costs and increase profit.
Some of the factors that negatively impact profit include the following:
The dramatic increase in complexity for F&I staff, reducing F&I referrals and impacting finance penetration through productivity losses. Lower penetration has flow-on effects or vehicle sales volume, department profitability
Reduces the lead generation opportunities which impact sales volume, and F&I gross profit
Reduces F&I productivity, leading to less F&I referrals which will result in lower penetration
Wastes valuable admin time adding to the business cost structures, reducing overall productivity and efficiency
Increases marketing costs on new prospect acquisition, impacting profitability and sales volume
These are only 5 topics (or gaps) and we know there are many more.
By turning this around, the average dealer group can put as much as $56,000 extra profit or more into their business per month.
Op2ma can help.
We have a proven track record for helping dealers increase business performance while reducing business costs. We do this by reducing the need for manual paperwork, reducing admin required and connect “unconnected systems’, which reduces data complexity.
If you would like to find out how we can impact your dealership and improve profits by eliminating the 5 gaps listed above, contact Ann Cawkwell using the form below for a free 30-minute confidential conversation about your dealership.
FREE 30-MINUTE CONSULTATION
Contact Ann Cawkwell
To find out how we can impact your dealership and improve profits by eliminating the 5 gaps listed above. Use the form below to book a free 30-minute confidential conversation about your dealership using the form below or call on
+61 419 857 970