Tuesday, July 28, 2009

How many dollars of gross are you leaving on the table

Through my years being involved with the automotive industry I decided to spend some time on the floor at a dealership and sale some cars. This was primarily to get some firsthand experience at what it takes to get a deal done and learn more about the back end of the business.

This dealership asks me to keep their best interest in mind, but was very aware that I was interested in lowing any car dealerships wholesale purchase cost to increase the car dealers gross profit.

The dealership management like most others knew that their best gross started with their managements best buys. Most of this car dealer inventory was through trade-ins and purchases made at the local dealers auto auction. However, from time to time they would travel long distances to purchases vehicles or seek them out through online dealer locate websites or dealers online auctions.

The dealership at one point was having great success with certain vehicles and contacted a dealer locate service to see what is available as there was nothing available in their local market. While they were able to do a dealer locate and find the vehicles the cost to transport the vehicles took too much away from their gross margins.

The car store management really wanted to make the buy, and ask me if they could post the vehicles on CarrierRates.com for auto transport bids and save. I said absolutely, that’s the best tools to use for auto transport bids. Shortly after the order was posted, the dealership received a bid that was 15% below the dealer locate bid.

This saving was significant enough to help the car store in having the vehicles in demand on their lot. Furthermore, provided the sales staff to make a favorable gross.

By the way, if you or your management team is looking for better gross, go to http://www.carrierrates.com/

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