HELP...
What is the benchmark for expense as a % of gross.
I thought it was 50.
Last year, after a lot of work and cost cutting, I averaged almost 50/50 but this year the GM has decided to increase the goal to what seems an unobtainable 46%.
I would like to see where others are.
This dealer was at 57% when I started.
Help, need info.
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expense as % of gross
2 posts
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expense as % of gross
by Mike Davis » Wed Apr 19, 2000 9:32 am
Hi Robert:
We used a 50% target until about 2 years ago and then changed the Net to Gross target at the 54% (46% of gross as expenses) and haven't had great difficulty in maintaining that once we identified the out of line areas. In our case it was in the number of employees and as attrition reduced the number we simply didn't replace them. Be upfront with people about why things are happening though so they understand why changes are made. I am assuming that you operate off of a Chrysler statement and that is a "net before fixed expenses".
Mike
We used a 50% target until about 2 years ago and then changed the Net to Gross target at the 54% (46% of gross as expenses) and haven't had great difficulty in maintaining that once we identified the out of line areas. In our case it was in the number of employees and as attrition reduced the number we simply didn't replace them. Be upfront with people about why things are happening though so they understand why changes are made. I am assuming that you operate off of a Chrysler statement and that is a "net before fixed expenses".
Mike
- Mike Davis
2 posts
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