Here we are in November 2016, two months into the 4th Quarter. The time of year that is historically slow in our industry is the perfect time, my friends, to BE thankful. Thankful for the opportunity to Reflect & Change.
During this slow season we encourage you to capitalize on the ONE thing missing the rest of the year – TIME. Use this time to look back over your 2016: your inventory, your make-ready, finance, vehicle sources, and advertising dollars. Is where you are now where you wanted to be at the beginning of the year? Have you reached your goals?
Looking back allows you the best viewpoint. After all, they say hindsight is 20 /20. To see any of the failures or “mis-takes” that may have been made. “Mis-takes” that may have been encouraged and ended up costing time, money, or clients in some form or fashion. By finding the so called mis-takes, you know where to make adjustments to make your business even more successful.
Every successful business has course corrections along the way. These come from taking responsibility for important Business Decisions and learning from both Successes AND Setbacks. By looking at our “failures” we gain the opportunity to learn, and then change that aspect of our business.
Allow me to give an example:
- Year to date – 78 Units Sold
- Year to date – 127 Units Purchased
- Year to date Gross Profits – $93,600
- Year to date Net Profits – $32,760
That leaves quite a gap between Gross and Net Profits. So where is the missing $60,840 ?
- Divide $60,840 by 78 sales = $780 per unit
- Subtract $200 per unit in Advertising and last minute recon, that leaves $580 per unit.
- Rent $3,000 / Utilities $1500 mo = $45,000 divided by 78 sales = $576.93
and THAT my friends eats up the $580 per unit carried.
What this tells me as a Dealer – 1 st is that I have MADE profit.
2nd is that I did not make enough to GROW my company
3 rd Time to change the way that I do my business so that I can GROW my dealership in the coming year, starting Jan 1, 2017
Here are a few things that I would be looking at very closely
- Business plans -vs- Action plans
- Shift Advertising dollars into Referral dollars
- Shop finance companies and floor planners
- Find 3 new mechanics
- Find 3 new inventory sources
- Invest into networking and social media
- Transparency -vs- Take-home mentality
Some of this must sound like a foreign language – it is the language of Business and Change.
Every and I do mean EVERY successful Dealer has incurred SPECTACULAR failures along his journey’s way. Failure is an integral part of success – if you never fail you will never know HOW to succeed. Where the difference in success comes from, is by doing exactly as we did in the example above – Analyze and Learn. Then immediately apply ACTION in the needed areas.
Belly-aching or Brainstorming – which is going to make you the most money for time spent? I will testify to the latter of those two . If you are stuck and can not see a way to change, then brainstorm with a successful buddy (regardless of business type). A fresh set of eyes and ears can make a HUGE difference on your perspective. Helping you find your desired outcome from the changes you are willing to make.
Let’s be honest, shall we? – At one point, we have all allowed Pride to take money out of our pockets. That can be human nature, at times. The better part of human nature also allows to invest in our dreams. That investment can be financial / physical / social / emotional or just plain old Time.
When was the last time you looked at your “dream”? Do you have the same dream, or in the last 10 months, has your dream shifted? If your dream has shifted, do you like the direction it’s going now?
Knowing your Dream and keeping your dream alive, having it in front of you everyday, will act as a compass towards greater success – EVERYDAY!
YES, November is a month of thanksgiving and evaluating – in not only business but relationships as well.
I appreciate all of you in a way you may never fathom. You are my Clients, my Friends, my “Comrades-in-Arms”. We have exchanged so much knowledge and learning between us. You have allowed me to build a business that I so dearly cherish and champion! I thank you for every opportunity you have given us.
The holiday season is upon us! We here at THA wish all of you a healthy, happy, most successful and prosperous seasons to come.
Sincerely,
Tom Hampton & the Team of Tom Hampton Agency
