Variable Operations Two-day Course

Learn how to analyze a dealership’s new- and used-vehicle departments through the financial statement and the dealership’s DMS reports. Information covered includes the importance of inventory turn, floorplan expense and gross retention; the impact of aged inventory on departmental profitability; and control of commission and advertising expenses. Also emphasized: the relationship between new- and used-vehicle operations.

FOUNDATIONS OF VARIABLE OPERATIONS

Recommended Prerequisite

Through a Dealer’s Eyes on What’s Important on the Financial Statement

Learning Objectives

Determine the dealership’s stated vision, from its actual practices through creative evaluation of sales units, sales dollars and gross.
Calculate the quick dealership analysis and compare it with NADA profiles in order to determine areas of opportunity for the dealership.
Identify three methods to increase profit in order to determine opportunities for the dealership.
Interpret the effects of vehicle inventory management in order to consult with the dealer to increase overall dealership profitability.
Recognize the controllable variable expenses relative to gross profit earned for improving expense control.
Analyze sales department pay plans to recognize the motivational focus of each department employee.

ADVANCED VARIABLE OPERATIONS

Learning Objectives

Compare and contrast the differences between negotiating techniques to identify areas for improvement.
Explain the customer-retention impact of new-vehicle leasing to sales managers and sales consultants to get buy-in.
Analyze a dealership’s inventory, floorplan activity and stocking/selling trends to uncover the margin of inefficiency.
Assemble a checklist of necessary tracking information, which should be recorded for showroom and virtual traffic, to evaluate a dealership’s tracking techniques.
Determine the sales opportunity in used vehicles relative to the number of vehicles wholesaled monthly.
Evaluate and recommend improvements of the used- vehicle operation through a comprehensive case study.
Differentiate used-vehicle pricing and stocking strategies and their effect on the efficient market in order to recommend improvements.