Yearly budgett

[bobdavis2010]

getting ready to do my yearly budget for 2015 I would like to hear the way other managers take there numbers into consideration ?

[greenthumb-38]

Not sure I understand your question ??

Our operation calls it a forecast... projecting sales, expenses, and of course, net profit. It is an art, at least in my eyes. Sadly, I am still in the finger painting stage. Can't be too high, nor too low... Kinda like the Goldilocks and Three Bears, eh ?? SWAG comes into the equation for sure.

~ gt smiles and gets back to work

[cville1987]

Ours is done monthly and it's basically the DP pulling umbers out of his ass, he doesn't even involve me because I'm a woman and I'm in parts.

[FixedManager]

Don't over think it. What's your yearly G.P. for the last three years? What is the average percentage of G.P. increases yearly?

Take your average G.P. and add it to your projection for this year and you have a yearly budget.

For monthly numbers divide the budget by your business days next year giving you a daily number. Multiply the daily number by business days in the month and you have it.

I have found this method very accurate and keep these numbers at hand as the numbers you turn in won't be close to the figures the ownership gives you as a budget.

[Mike Nicholes]

If you have the data, run a trend, both monthly and yearly, for the past three years and notice what the trend has been, up or down. Ask the Service manager and the New and used car managers to do the same thing; These three, the trend for them, when compared to yours will give you a pretty good idea in which direction the whole dealership is going. You can then extrapolate your norml growth along with theirs and from that, get pretty good idea of where, under normal conditions you, in parts, are headed. The trick now is to come up with a plan that will increase sales; not only to the captive inside customers, but to those outside the dealership as well.

Mike Nicholes