DealersEdge Professional Forums

Question as to what you all think are fair comparisions to make when comparing one store to another.

Case and point. I am the SM at a stand alone Mazda store. There is also a stand alone Kia store in our dealer group. DP/GM is putting the screws to the SM at the Kia store because we (Mazda store) did more in fixed gross this month than the Kia store.
I know both are imports, but is this really a fair comparision?

I think comparing Kia to Hyundai or Suzuki, or Mazda compared to Toyota or Nissan would be more of an "apples to apples."

What do you all think?

I don't think it is right to compare any store to another, even one of the same franchise. Your Kia store should only be compared to itself-how did it do this month compared to previous months. There are too many variables to consider comparing with another store. Market share, vehicle reliability, and staff just to name a few.

I would agree with partman01, the only way to compare, in my mind, is market share and/or retention. If the DP/GM is not looking at UIO or retention. If both stores have 10,000 units in operation and one stores retains 50 % of the database and the other store retains 20 % of the database . Then I could see an argument-but even then there are many factors that a service manager cant control- how were they treated in sales? Is your pricing high due to factory parts pricing? extended service contract penetration? You see where I am going. A better gauge would be growing RO count or shrinking RO count from last year

Does your dealership participate in any Dealer 20 Groups? If so, the comparisons made from store to store are for a like franchise, like size and in a similar market. This, in my opinion, would be a more valid comparison that your Kia to Mazda dealerships.
You have 2 totally different customer mindsets when comparing those 2 franchises. Yes, there are always improvement opportunities no matter what franchise you represent, but you need to do a deeper dive into the actual areas that need improvement, not just make a blanket comparison.

Good Luck!

Linda

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Linda Graham Hansen
Auto Dealer Focus
www.autodealerfocus.com

I am a Service Director for multiple stores and franchise's. The comparison's I make between the stores are mainly averages. Growth over last year/month for example. I cannot compare a lot of things store to store. Though if you do compare you can find good info. If they are looking to compare to put a beating on someone then stop comparing. Compare to use one stores strengths to help the other.

This might shock a few of you, but I think most of it is nonsense!!!!

Use traffic and Posted Labor Rates as your normalizers, and the rest is simple math to make the gross profit comparisons. Mindsets, markets, blah blah blah...
Now if you want to get serious about how to give the GM/DP what they want (more gross) or a reasonable arguement that your performance is adequate or better give me a holler. I am in a helping mood.

DealerProfit

Lets hear it. How do you compare one store to the next?

DealerProfit

Lets hear it. How do you compare one store to the next?

I use NADA guidelines. Hours per RO for example is not a particularly stunning tool, but it is easily leveled across markets to adjust for labor rate variance. Parts to labor ratios, expense guides etc.... Hell I can give you an analysis of most any store in a few hours without ever setting foot in it. The problem is most people think that their problems are unique. With very rare exceptions they are not. For years as a consultant I used to throw a $50.00 bill in front of the Techs as a group and challenge that who ever could throw a problem in front of me that I hadn't seen before the $50.00 was theirs. I only gave it away once.

Too often it is taken as a personal attack when someone says, "Hey this part of your business sucks". Most of us shift to defense instead of saying "why do you say that, and what would you do different?".
It gets worse. The natural tendancy for humans (I have read) is to reach a conclusion and then reach ouut for anything that supports our predrawn conclusion.

Seems to me that the original post on this thread feels exactily that way. Taking more than a little artistic license my impression of the entire thread was "I don't want to be measured against recognized industry benchmarks (for what ever reason) pleae as a group make me feel better about it.

Get your DP to give you a copy of the latest NADA guide book.
Recognize that yeah like the rest of us you are not perfect, but could probably get better.
Take an honest look at your department compared to guide.
Pick one thing and make it better.
Lather, Rinse, Repeat. Just like the shampoo bottle says.

Oh yeah one more thing. Stop periodically and marvel at your successes.

If you need help be specific and send me a note. Yeah I know I'm a jerk, but I am good at what I do.

You can ONLY compare same Manufacturers in the same market PERIOD. All other comparisons are nonsense.

Your KIA store can only be compared to other KIA stores in your market. That is a fact. If you don't belive me email Mike Nicholes and ask him.