Import V.S. Domestic

[Art_Mopar]

I made the decision to pursue employment with one of the import brands and on my quest I keep running into the same story which goes like this: $80 to $90 dollar door rate with a $60 to $70 effective rate and hours per ro always below 1.0! Even with imports being trouble free forever and only requiring scheduled maintenance what gives? I have an opportunity to go to a Nissan Store with a nice salary and what looks like a good % of the net but the owner admits that Service and Parts are showing a net loss for the year (haven't actually seen a statement yet or an account break down). Being a Chrysler Guy only since 1984 my mind is having a hard time understanding why these stores are in this shape. I love being paid off the net and I am alright taking my hit up front until I get the Store straightened out but am I missing something here?

[TheOne]

Yeah Art your are missing something. Import net profit is recorded as a true net after fixed allocation unlike Chrysler who shows departmental net PRIOR to fixed expense.

Second note, if given opportunity to truly run this store, go for it. Speaking from comparison you will find it much easierr to improve ELR and hours per RO at the Nissan store than what you are used to. You will also find the customers easier to sell maintenance too.

Third note, I would suggest you alter the pay plan to pay you from gross profit less direct departmental expense rather than net. You are not going to be able to tell the dealer he ahs to give up his girlfriend or put off that vacation etc......

[pjpeery]

"Third note, I would suggest you alter the pay plan to pay you from gross profit less direct departmental expense rather than net. You are not going to be able to tell the dealer he ahs to give up his girlfriend or put off that vacation etc......"


omg have seen this before

[Jaybee]

Good luck on getting the new job Art! Are you going to have to move, or will you able to stay in the 'burgh?

John

[This message has been edited by Jaybee (edited 06-27-2009).]

[exmopar]

Art - as you are doing, I too wanted (needed, had to??) a change, so I moved to a Chev/Cad store in a larger center. Lasted 8 months. The General should be a private.

Anyways, went to Nissan store which had been Mom and Pop (and kids, dogs, cats, etc) but had just been bought out. They sold nothing and were VERY proud about it. Store over doubled sales (almost triple) in all depts, then moved into a brand new facility just as "the recession" hit. Our parts and service sales have inceased since this time, and have set numerous new records in sales and all verifiable catagories.

It's easier to move the needle in an import store than domestic - in the good times, the domestics survive on trucks and repairing them. On the import side, you rely on maintenance and the fact they keep them forever - can you say customer pay?

Just make sure that any pay plan starts where they are today at an "OK" wage, and it will get better. Just make sure you are paid on gross less your expenses - I have seen too many dealers who do what's listed above - and don't forget, some even have "personal assistants" which the dealership pays for.

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No, i'm sure you said left, right?

[Art_Mopar]

I actually have had 3 offers after 3 interviews, 2 would require my relocating, the Nissan deal is a 50 minute drive-all highway and out of state. Sort of the same deal as exmopar--new owners but older facility, strong new sales, stronger used. Very small shop with room to grow, very low effective rate and very low hours per ro. Nice salary and commission % on Parts and Service Net, I do lose the demo and gas. It will be about a 30% hit over a lousy 2008 and feels like I am starting out all over again but I get the feeling that the store is on the rise, something I haven't felt in a long,long, time. After looking at a NADA Guide for 2007 it looks like Nissan has a ton of accounts (5 on service salaries and compensation alone). I guess the best approach would have to be a line item statement negotiation! Any thoughts?

[JustBob]

Art,

As you indicate going to a new job at a dealer that has upside potential is priceless. Enthusiam is contagious and so is discouragement. Would rather be excited about going to work on Monday morning then dreading it and merely waiting for Friday. Nissan has been a survivor in the past, their $99 leases 10 years nearly bankrupt them. Hopefully they remember how to work/fight when thing are bad. The difference being all the manufactures are haveing a tough time right now. Some of them do not know how to "survive" when the going gets tough. They will probably learn but may have some short term struggles.

Have not looked at a Nissan Financial Statement in a few years but as I recall the follow the basic GM detail and even account numbers. Is great for a detail oriented bean counter but sometimes too much detail for a non analyser. The Chrysler Accounting/Financial Statement is about 1/2 the detail of the GM one.

Agree with TheOne go for a pay plan based upon items you can control. That is the true definition of a performance pay plan. There is no perfect employeer but there are some great ones. Unfortunately you usually cannot truly tell until you are knee deep.

Good luck, go for it, and hold on.

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Have a tremendous day
Bob Britting

[westover6]

left Ford 6 1/2 years ago for Nissan. Best damn decision I ever made. (18yrs w/Ford). Go for it and goodluck!!!!

[Art_Mopar]

Pay Plan is what it is, strong base salary and %of Parts and Service Total Net (bottom line). I've met the owners twice, toured the facility tonight and I must say I like these guys and the attitudes they have. Yeah, I've been burned in the past but I am probably going to take the offer since it is an opportunity to get away from Chrysler, who sent my wife a letter Saturday informing her that her Servicing Dealer closed but not to worry they are giving her a list of new Dealers to choose from! Anyway, next question--what the hell is ADP's Web Suite 1000 all about and what am I losing over the Standard ADP?

[TheOne]

ADP Websuite is nothing more than a re-badged ADP Alliance. This is the biggest piece of junk on the market.

Example:
Close a repair order on Tuesday, the numebrs show up in the financial reports.

Reopen the same repair order on Wednesday (yes you can do this). Close it again and the numbers again show up on the financial reports.

Problem, it doesn't back the Tuesday numbers out. Yes it counts twice. I have pointed this out to ADP in many locations for many years. Yeah they are working on it, and I'm holding my breath.........

Buy the full ADP or buy someone elses low cost DMS. My opinion comes from personal experience and I wouldn't touch it.