"Unlocking Profit Potential"

If your dealership is grappling with profitability issues, it's natural to contemplate significant changes like restructuring management or trimming expenses. However, before considering such drastic measures, let's explore a different perspective.

Rather than immediately opting for personnel shake-ups and budget cuts, let's first consider a shift in mindset and strategy. Begin by identifying the root cause of the revenue shortfall—is it stemming from the service department, parts department, sales, or a combination of factors?

It's a common reflex to scrutinize the sales department, but let's notice the crucial role of the pre-owned vehicle segment. For instance, a significant chunk of revenue originates from pre-owned vehicle sales at many dealerships. Yet, it's surprising how few upper managers have firsthand experience with the intricacies of procuring used vehicles, such as participating in auto auctions.

Take, for example, a recent encounter I had with a dealership aiming to ramp up its used vehicle sales from 70 to 150 units per month. When I raised questions about their average profit per unit and suggested diversifying their inventory, my inquiries were dismissed.

Many dealerships rely on centralized departments for sourcing used vehicles, primarily due to concerns about misconduct in the used car department. Similar to the approach in Singapore, where high salaries are used to uphold integrity, the dealership's centralized department aims to minimize the risk of unethical behavior and enhance accountability.

Given that a substantial portion of dealership revenue hinges on pre-owned vehicles, appointing individuals with a comprehensive understanding of the market is imperative. Look for candidates with extensive experience in auto auctions, strong negotiation skills, familiarity with floor plans, marketing prowess, and proficiency in prime and subprime financing.

Moreover, prioritize traits like technical diagnostic abilities, leadership qualities, and a positive attitude. Once you identify such individuals, compensate them accordingly.

Considering Singapore's political landscape, consider the impact of rewarding dealership personnel appropriately. Investing in talent not only fosters success but also ensures long-term viability.

Moreover, to ensure the success of your used car department—where over one-third of your dealership's revenue originates—it's essential to empower the used car director with the resources necessary to thrive. This includes providing a budget for hiring and training an assistant.

Attempting to manage all aspects of the department single-handedly can be overwhelming. More than simply being in the office and clicking through automotive software like V-Auto won't suffice. By investing in additional personnel, the used car director can effectively navigate the complexities of procurement, marketing, and sales, thereby maximizing the department's performance and contributing significantly to overall dealership profitability.

In summary, reconsider your dealership's approach before resorting to drastic measures and invest in knowledgeable, skilled personnel to drive sustainable growth. The example of the pre-owned department serves as a prime illustration of the importance of investing in individuals with experience and wisdom who can effectively perform their roles. Moreover, dealerships must be open to unconventional approaches that deviate from their usual methods, as thinking the same thoughts will yield similar outcomes. By embracing innovation and diverse perspectives, dealerships can navigate challenges and capitalize on opportunities, ultimately ensuring long-term success and profitability.