According to NADA, in the first half of 2017 the average auto dealership earned nearly half its gross profit through service, parts, and body shop. That’s no surprise. If you are thinking of selling, you want your fixed ops to shine so your store is worth more.
If you are a Jeep dealer, however, another area that can add value to your store is robust sales of those specialty items that Jeep owners are so fond of. Another tip, says Ken Rosenfield, one of our columnists this week – watch out for selling too many wholesale parts. Read his column to find out why.
The F&I department is another place dealerships look to boost profits. Selling insurance products to customers isn’t the only way insurance can add to a dealership’s revenue, however. This week, Steven Gibson reminds us that as a dealership group grows, so do its insurance options and needs. Making sure your group’s insurance matches your size can both reduce risk and bolster the bottom line, he says.
And last but definitely not least, we have Transaction News.