by sallen1 » Fri Oct 31, 2008 9:28 am
Wow, great post.
Turn a problem over and you will find opportunity! Don't know who said it first but it works in this situation.
In every economic hit to the car business, good dealers got better, great dealers got bigger and bad dealers went away.
This is the time where leaders and motivators make their mark on business. A positive mental attitude every morning, refreshed in the afternoon can and will help thru this tough period. Any dealer properly capitalized and positioned defensively will do just fine. I wouldn't be surprised if those new stores in your area go bust.
Defense: Pare new inventory to one car less than what you think you need. Used cars at 45 days supply, 60 days age max. Focus on fixed ops support: Get sales people to help in the shop (shuttle driving, answering phones). Maximize fixed coverage, cut the extra baggage. Don't know about you but our service business is very busy, so is parts-wholesale. People are fixing vs. replacing.
Ask your employees for ideas. We eliminated uniforms in Parts, bought very nice dress shirts and will save $2700 per year!
Keep your best people and remind everyone that this too soon will pass.
s