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1
A step-by-step guide for creating an
Actionable Process that yields results!
by Brooke Samples, president
Profit Blueprints, LLC
From Forecasting ToGoal Setting To
RECORD BREAKING!
2
Over the course of her career, today’s presenter,Brooke Samples, has analyzed over 14,000 Dealership
financial statements. Over the past 15 years, Brooke
Samples has coached and motivated hundreds ofDealership Managers in all departments across NorthAmerica. Using her monthly financial analysis, ProfitBlueprints, she compares Dealers’ financial statementsto key Benchmarks. She then uses her previousdealership experience, plus feedback from 15 years ofCoaching & Consulting her Clients to help Managersutilize over 150 Action Plans.
By implementing customized processes her clientsreach their full Net Profit potential. She’s proven thatwith good people, consistent training, the right plans,and a little good-natured "nudging", her Dealershipclients can become very successful.
In 2012 & 2013 she worked with VW University,training VW field staff to understand the profitopportunities hidden in the financial statement. Beforebecoming a Consultant, she worked in Dealerships in avariety of upper management positions. She expandedher automotive knowledge while working for LloydSchiller’s Dealer Service Corporation and later as partof NCM Associates.
Your Presenter,
Brooke SamplesPresident
Profit Blueprints,LLC
1.866.316.7418
3
The Forecasting Meeting
The way it was:
The way it has beenThe way it has been:
From Forecasting to Goal Setting to Record Breaking
Page 1Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Why the Process Should Change
Your Managers Are Not Accountants
Less Support Staff
Less Available Time
More Pressure for Higher Profits
New Managers
Reduce Sandbagging or Exaggeration
5
Forecasting: the process of makingstatements about events whose actualoutcomes have not yet been observed.
Goal Setting: the process of establishing◦ Specific
◦ Measurable
◦ Achievable
◦ Realistic
◦ Time Targeted
From Forecasting toFrom Forecasting toGoal Setting To Record Breaking!Goal Setting To Record Breaking!
6
Goal setting is an effective tool to ensure allmembers of a group are clearly aware of acommon goal and the role each member playsin reaching the goal.
Studies have shown that specific and ambitiousgoals lead to a higher level of performance, aslong as individuals accept the goals.
Source: Wikipedia
From Forecasting toFrom Forecasting toGoal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
Page 2Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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7
Dealer/General Manager/OperationsManager plus
Controller/CFO/Office Manager
Determine how much the Dealershipwants to make in 2014
From Forecasting to Goal Setting
8
1) Executives closely examine expenses
2) Which expenses were too high this year, which aregoing to change in 2014
3) Executives determine how much profit the dealershipshould earn in 2014
4) Managers focus on the growth of their departments
5) Quantify each Employees’ contributions to thedealership’s profit goals
From Forecasting to Goal Setting
9
From Forecasting to Goal Setting to Record Breaking
Page 3Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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10
Forecasting an Expense BudgetCFO/Controller/Office Manager
Examine expenses for 2013.
Which will change in 2014?
How are the expenses trending?
How do they compare to benchmarks?
Which are controllable and non-controllable?
Speak with each Manager & ask questions
11
Forecasting an Expense Budget
2013 Average Sept Aug Jul JunRent $48,000 $48,000 $48,000 $48,000 $48,000 $48,000
Amortization - Leaseholds $4,500 $4,500 $4,500 $4,500 $4,500 $4,500Repairs Real Estate $1,575 $415 $6,300 $1,000 $150 $417
Taxes - Real Estate $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Insurance - Bldg $1,340 $1,350 $1,350 $1,350 $1,350 $1,329
Utilities $7,154 $8,987 $8,324 $9,040 $5,992 $6,226Insurance - Other $1,486 $4,800 $4,239 $1,726 $561
Repairs - Equipment $2,921 $3,059 $3,437 $4,657 $1,679 $3,397Depreciation - Equipment $15,312 $14,788 $14,788 $14,788 $15,627 $14,828
Create tools to help. DOCs or import information to Excel
12
Regardless of the Allocation method, it
should be fair and it should be easy
for Managers to understand what they
can control and what they cannot.
Allocating Overhead Expenses
From Forecasting to Goal Setting to Record Breaking
Page 4Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Square Footage. Allocation of Rent,
Amortization of Leaseholds, Electricity,
Property Taxes is typically based on each
Department’s percentage of the Total
Dealership’s Square Footage.
Allocating Overhead Expenses
14
Employees. One way to allocate clerical and
support staff not assigned directly to a
Department is to calculate each Department’s
Employees as a percentage of the total
Employees and use that percentage (such as a
payroll clerk), or allocate the expense as a
percentage of the amount of time “spent”
doing work for a specific Department.
Allocating Overhead Expenses
15
Guesstimating. Another method is simple
“Guesstimating.” These expenses usually
include expenses that would be take too
much time to split up, such as the phone bill.
This is often used with the general Office
Staff expense for positions such as a payables
clerk.
Allocating Overhead Expenses
From Forecasting to Goal Setting to Record Breaking
Page 5Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Equal allocate. Equally splitting an expense
amongst all Department can be used for
expenses such as General Manager’s or
Executive compensation.
You could also split an expense based on the
contribution to total Gross Profit – but that
will penalize those who improve their Gross
Profit.
Allocating Overhead Expenses
17
Source: NADA Industry Analysis
August 2013 YTD
Advertising Expense: 1.01% of Total Sales
Per New Vehicle Retailed: $593 (2012:$621)
Floor Plan Interest Expense: -0.13%
Expense Budget
18
Dealer/General Manager/OperationsManager plus
Controller/CFO/Office Manager
Determine how much the Dealershipwants to make in 2014
From Forecasting to Goal Setting
From Forecasting to Goal Setting to Record Breaking
Page 6Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Compare each department’s Net Profit as a % of Gross Profit
(for GM & Imports)
Selling Gross Profit as a % of GrossProfit (for Ford)
Department Net Profit as a % ofGross Profit (for Chrysler)
From Forecasting to Goal Setting
20
45%45% – 55%55%45%45% – 55%55%15%15% – 25%25%Body Shop
55%55% – 65%65%55%55% – 65%65%30%30% – 42%42%Parts Dept.
45%45% – 55%55%45%45% – 55%55%20%20% – 30%30%Service Dept.
40%40% – 55%55%40%40% – 55%55%10%10% – 20%20%Used Vehicle
30%30% – 45%45%30%30% – 45%45%10%10% – 20%20%Include Factory $
New Vehicle
ChryslerDept. Net
Profit
Ford SellingGross Profit
Net Profit(GM & Imports)
M.A.PM.A.P. – TargetTargetfor Department:
From Forecasting to Goal SettingDecide What You Want Each Department’s Target to Be
21
Where Could You Have Done BetterThis Year?
Paradise Motors
30%30% –42%42%
15%15% –25%25%
20%20% –30%30%
10%10% –20%20%
10%10% –20%20%
TargetNP%
MissOppt.
ActualNP %
GP
Avg.month
(42% -27%) x$30,000= $4,500
Breakeven$3,000
(20% -5%) x$40,000= $6,000
(20% -15%) x$100,000= $5,000
27%-20%5%40%15%
$30,000$15,000$40,000$100,000$100,000
PartsBodyShop
ServiceUsedVehicle
NewVehicle
From Forecasting to Goal Setting to Record Breaking
Page 7Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Where Could You Have DoneBetter This Year?
Paradise Motors
MissOppt.
Avgmonth
$4,500 x12 =$54,000
$3,000 x12 =
$36,000
$6,000 x12 =$70,000
$5,000 x12 =$60,000
PartsBodyShop
ServiceUsedVehicle
NewVehicle
Potential MissedOpportunities $220,000
Projected 2013 Net Profit = $750,000
First Roundof 2014 Net
Profit =$970,000
29%Improvement
23
Where Could You Have DoneBetter This Year?
Paradise Motors
Projected 2013 Net Profit = $750,000
You have 3 choices for 2014:
Go backwards
Stay the same
Improve
24
What Can You Do? Departments that are doing well, see how much
they improved over 2012. Will they continue to improve?
Sales Department:1more sale a week would beworth $110,000 more GP for the year$110,000 more GP for the year.
Service Department: 1more service tech =$180,000 more Labor & Parts GP for the year$180,000 more Labor & Parts GP for the year
Each Advisor is worth between $400,000$400,000 --$700,000$700,000 Labor & Parts Gross Profit per Year
Think BIG! BE AMBITIOUS!
From Forecasting to Goal Setting to Record Breaking
Page 8Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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By setting goals, you create
measurable Targets, which forces
you and your Managers to develop
the Action Plans that will help you
reach those Targets.
From Goal Setting ToRecord Breaking
26
Each Manager Needs A Goal
Once you’ve set the Dealership’s Goalsestablish the Managers’ Goals:
How much Net from each Department
Allocate the Department & OverheadExpenses
Add the Net and Expenses to determine theGross Profit each department needs toGenerate
27
Each Manager Needs A Goal
Ex: Dealership Net ProfitGoal = $1,500,000
New Vehicle $420,000Used Vehicle $600,000
Service Dept. $220,000
Body Shop $60,000Parts Dept. $200,000
From Forecasting to Goal Setting to Record Breaking
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Each Manager Needs A Goal
Ex: Dealership Net ProfitGoal = $1,500,000
Net Profit
Target
Net Profit
Target %
Gross Profit
Target Monthly GP
New Vehicle $420,000 20% $2,100,000 $175,000
Used Vehicle $600,000 40% $1,500,000 $125,000
Service Dept. $220,000 20% $1,100,000 $91,667
Body Shop $60,000 20% $300,000 $25,000Parts Dept. $200,000 40% $500,000 $41,667
NET PROFIT $1,500,000 27% $5,500,000 $458,333
29
Ford & ChryslerEx: Dealership Net Profit
Goal = $1,500,000
Plus Overhead Expenses $1,365,000=$2,865,000 Selling Gross/Dept. Net
New Vehicle $945,000
Used Vehicle $825,000
Service Dept. $605,000
Body Shop $165,000
Parts Dept. $325,000
30
Ford & Chrysler$2,865,000 Selling Gross/Dept. Net
Selling
Gross/Dept.Target
Selling
Gross/Dept.Target %
Gross ProfitTarget Monthly GP
New Vehicle $945,000 45% $2,100,000 $175,000
Used Vehicle $825,000 55% $1,500,000 $125,000
Service Dept. $605,000 55% $1,100,000 $91,667
Body Shop $165,000 55% $300,000 $25,000
Parts Dept. $325,000 65% $500,000 $41,667Selling Gross or
Dept. Net$2,865,000
Overhead Exp. ($1,365,000)
NET PROFIT $1,500,000 $5,500,000 $458,333
From Forecasting to Goal Setting to Record Breaking
Page 10Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Meetings
Schedule at least 3 meetings
Kickoff Meeting - Expense Review
Gross Profit Improvement Plans
Putting it All Together
32
The goal of your 1st Goal Setting meeting is
to involve all Department Managers so they
are committed to the outcome
Reinforce the benefits of the Goal Setting
process – Planning for the future
This meeting is not to come up with all of
the plans to reach the goals
Kickoff Meeting Objectives
33
Schedule a date and time for your meetings –
Consider around breakfast or lunch time.
1st meeting: Plan a couple hours to cover:
Benefits of goal setting
Expenses
Personnel/Staffing (Have pay plans
available)
Kickoff Meeting
From Forecasting to Goal Setting to Record Breaking
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Kickoff Meeting
What was the best thing each Managerdid in 2013?
◦ Reinforces the benefits of change
◦ Provides the Managers with theopportunity to show off their skills
◦ Can you build on the process?
35
Make it fun with prizes!
Most improved department
Best idea for reducing expenses
Best idea for growth
Kickoff Meeting
36
Managers often feel there is little they can do
to control the Overhead Expenses.
Dispel the myth by:
• Examining overhead expenses with
Managers. (Phone, Electricity, Workers’
Comp, etc)
• Discussing ways of reducing the overhead
expenses.
• Taking a physical inventory of Fixed Assets
that are being depreciated. Are they still in
use or do they need to be written off?
From Forecasting to Goal Setting to Record Breaking
Page 12Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Start with reviewing the expenses for
the current year with the Managers.
• Look for expenses that can be
reduced or eliminated
• Misallocated Expenses
• Duplicate Services
Expense Budget
38
Expense Budget
Examine the expenses with the Managers
Compare to benchmarks or targets
If you want to reduce any expense:
Monitor daily.
39
Expenses
Examine the expenses with the Managers
Controllable:Advertising ExpensesFloor Plan ExpensesPolicy ExpensesOffice & Other SuppliesOutside ServicesTrainingFreight
From Forecasting to Goal Setting to Record Breaking
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Expenses
Largest Expense
Personnel Expenses
Do the pay plans align with thedepartments’ goals?
41
Personnel Expenses
Get a boost in production
eliminate draws
pay weekly, every 2 weeks or twice amonth.
Retain and attract Gen Y employees
They would rather have an hourly wagethan a commission pay plan on whichthey could earn more.
42
Personnel Expenses
Gen Y Commissions
Ex: Base salary $3,000 (or hourly) amonth, plus a % of Gross Profit
Commission doesn’t kick in untilthey’ve covered at least a portion ofthe salary.
From Forecasting to Goal Setting to Record Breaking
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Creating a forecast or goal setting is a wasteof time if there is no plan to change thecurrent structure and there are no plans toreach the goals.
Encourage the Managers to commit withAction Plans.
Kickoff Meeting Objectives
44
Sample Action Plan
45
Create good Action Plans to use as a roadmap
to reach goals:
Action Plans need to be written to cement the
commitment necessary to follow through
Set a measurable goal and how it will be
measured
Define the problem currently preventing us
from reaching the goal
Commit with Action Plans
From Forecasting to Goal Setting to Record Breaking
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Define the strategies to reach the Goal
Examine obstacles to overcome
Who is in charge of implementation? Who will
be involved?
What resources will be necessary to
accomplish the goal?
Set a time-frame for completion and mini-
accomplishments
Commit with Action Plans
47
Provide Managers With Their Goals
Lay out the dealership’s goals with thebreakdown of Expenses
and Gross Profit Goals for eachdepartment.
48
Managers and Their Goals
Use measurements the managers are used toworking with or that are easy to measure:
Gross Profit per Finance Contract
Shop Hours
Labor Sales per Customer Pay Repair Order
From Forecasting to Goal Setting to Record Breaking
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Provide Managers With Their Goals
Provide the managers witheasy-to-use tools to work on
Sales and Gross Profit improvement.
50
Goal Setting Tools
Details
Details
Details
The Gross Profit Goal
Sales Department Example
51
Gross Profit per Tech Hour $65
(Gross Profit/ Total Tech Hours)
Hours Flagged per Week 40
Gross Profit Per Week $2,600
Available Weeks 50
Annual Gross Profit $130,000
What Each Technician is Worth
Goal Setting ToolsService Department Example
Can YouImproveEither ofThese #s
From Forecasting to Goal Setting to Record Breaking
Page 17Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Break the Goals into Weekly Goals
Easiest – divide Goals by 52
Create seasonal Goals by reviewing2013’s trends.
2013 Average Sept Aug Jul Jun MayNew Vehicle Sales 61 41 67 72 69 75
Used Vehicle Sales 53 45 58 61 43 42
53
“The problem is never how to get new,innovative thoughts into your mind,but how to get old ones out.”
Dee W. Hock
From Goal Setting to Record Breaking
54
Ask the questions, “What do I want my
Department to look like at the end of 2014?”
What do I want my staff to look like? Do I
need to “upgrade?”
What do I want my processes to look like?
Do we need more training?
What can I do differently to improve my
Department?
How will I reach my goals?
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
Page 18Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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With your vision in mind, focus onwhat needs to be changed to make
the dream a reality.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
56
What are our plans for maximizing theimpact of the Internet?
How can we optimize our data base?
How can we close more deals?
How can we bring in more traffic?
How many more sales people will we need?
Vehicle Department Questions
57
Does Finance speak will cash Customers?
Is the Sales Department doing a good job at
closing the Customer on the right vehicle,
or does finance have to re-close the
Customer?
Are there other after sale products we can
sell?
Is the “Finance Team” well trained?
Finance Department Questions
From Forecasting to Goal Setting to Record Breaking
Page 19Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Joni Stuker: How to Generate Your Own Sales Leadsby Effective Prospecting Via the BDC and Beyond!
Brian Pasch: Video Marketing Strategies That SellCars
Jennifer Suzuki: A Follow-Up Process to IncreaseVehicle Sales to Unsold Internet Leads
Steve Nickelsen: New Trends in Automotive SalesForce Management - Recruitment, Compensation &
Management Style
Sales & Marketing Webinars
59
Do we need to go after new business or do a
better job with our current customers?
How will we staff for growth?
How can we improve Customer retention?
How is the mix of our work changing and
what do we do to optimize the change?
What do we need to do to be in the tire
business?
Service Department Questions
60
Which Insurance Companies should we
pursue for DRP status?
Could we be doing more used vehicle work?
Do we need to improve the quality of our
work?
How much more could we do with more
staff or space?
Body Shop Questions
From Forecasting to Goal Setting to Record Breaking
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Should we be in or out of the WholesaleBusiness?
Can we increase accessory sales?
Do we have a process to minimize anyunsold special order parts?
Could we support the Service Departmentbetter and, if applicable, the Body Shop?
Parts Department Questions
62
Greg Criss: Tips for Turning Your Quick ServiceLane from a Loss Leader into a Profit Driver
Chuck Hartle': New Parts Pricing Strategies toProfitably React and Adjust to New Factory PartsSystems & Initiatives
Sidney Haider: Seven "Ps" for Success in AccessorySales
Rob Campbell & Mike Bowers: What's New andDifferent in Fixed Operations Pay Plans
Service & Parts Webinars
63
Often not considered a profit center,Accounting can make a huge difference in thebottom line.
What can Accounting do to help eachDepartment?
Do we have the right number of supportstaff?
What can the accounting department do tominimize audit expenses and helpdepartments comply with governmentregulations?
Accounting Questions
From Forecasting to Goal Setting to Record Breaking
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Christine Andrews and Rob Campbell: The Habits &Practices of the Exceptional Automotive Controller
Jeff Sacks: Key Performance Indicators - The "Keys"to Professional Dealership Management & Growth
Charles Feuss: Top 10 Employment Law IssuesFacing Car Dealers in 2013
Doug Austin: Top Ten Dealership Cost Savers…How Dealers Saved Big Bucks in the Past Year and
You Can Too!
Senior Management Webinars
65
After the Managers have had sufficient time todigest the data and created Action Plans to reachthe target net profit (selling gross/ departmentnet profit), discuss what changes are planned for2014.
This may end up being two meetings, onefocusing on front-end New & Used Sales and onefocusing on the back-end Service, Body Shop andParts Sales.
Either way all Managers should be in attendance.
Second MeetingSecond Meeting
66
Have each Manager present what heor she is planning on doing
differently in 2014. Look for NEWideas or IMPROVEMENTS on currentprocesses that will lead to success.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
Page 22Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Once the group has discussed all the ideas,
the Department Managers should fine-tune
the Action Plans that will add to the success
of their Departments.
Make sure to include a specific time frame to
accomplish the Plans, along with the
Accounts Numbers to measure
improvements.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
68
With your Action Plans and Goals in hand, 2014 is
going to be a winner.
Now, perhaps the most important part of your plan -
getting your Employees involved with your plans for
2014!
Get Your Employees Involved
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
69
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
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Even though your goals may be broad, suchas “sell 95 new vehicles a month” or “turn4,500 shop hours a month,” Managers willneed to break these numbers down intoindividual goals.
By setting Employee’s personal goals you willbe able to coach each Employee, making iteasier to reach your goals.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
71
In a 20-year study by the Gallup Organization,“Knowing what is expected of one” was the topfactor in motivating Employees to besuccessful.
Managers’ steps:1) Review your Action Plans to determine which
Employees will be instrumental in implementingwhich Action Plans.
2) Schedule a meeting with all of your DepartmentEmployees. Use this time to excite your Employeesabout the future of the Dealership and theDepartment. Your enthusiasm will be contagious.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
72
3) Schedule individual meetings for each
Employee to review his or her role in implement
your plans and what has to be accomplished to
reach the goals.
All Employees should have the opportunity to
meet with their Managers.
For productive staff, use this meeting to review
and set individual goals—such as number of
units sold, number of hours flagged, etc.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
Page 24Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
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Meet with your Employees with the best
attitudes first, then meet with the others.
This will get the meetings started off right.
Share the goals you have set for him or her.
Be prepared to listen to why the goal can’t be
reached. This is an opportunity to review
your plans and gain valuable insight to
potential road blocks.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
74
Example of a response from a Technician:
“I can’t turn that many hours because theService Advisor’s don’t bother calling the
Customers with my estimates.”
Response by Service Manager:
“Part of our new Plan is to implement a second-effort process. If the Service Advisor hasn’tsold your estimate, you are now to come tome, then I will speak with the Customer tosell the job. Do you see how this will help
you turn more hours?”
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
75
Each productive employee should haveindividual goals that tie to your overalldepartment and dealership goals. Because ofdifferent skills and experience, you cannotsimply divide your forecast by the number ofemployees.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
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Example of Unit Goals:
Michelle J. (A veteran Sales Associate) – 15Units a month
Sammy L. (A New Sales Associate) – 8 Units amonth.
Get Your Employees Involved
77
Example of Hourly Goals:
Mark W. (Master Tech) - 65 flagged hours aweek
Tommy M. (C level Tech) - 45 flagged hours aweek
Get Your Employees Involved
78
Create an easy way to track each Employee’s
progress against the establish goals and
monitor it weekly.
With weekly goals you can make corrections
in actions and procedures immediately,
rather than waiting for the end of the month.
Compare Your Goals WeeklyCompare Your Goals Weekly
From Forecasting to Goal Setting to Record Breaking
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WHITE BOARDS
1 White Board - $50
Professional Lettering - $175
Dry Erase Markers - $10
Record Month – Priceless!
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
80
When an Employee reaches or exceeds his or
her goal – CELEBRATE!
Reward or recognize the winners publically.
This will reinforce the value of working
towards the goals.
It will show others that the goals are
attainable and the effort is appreciated.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
81
If you’ve followed the steps in this webinar, you
are poised for a successful 2014.
You established Goals.
You have determined the necessary Actions
to reach those Goals.
You’ve engaged your Employees in your
vision.
Now for the follow-through.
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
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Make reviewing the forecast part of eachmanager’s weekly responsibilities.
Where are they in respect to their goals? Justdon’t go through the exercise of creating aforecast — get on the scale every week and
see how you’re doing!
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
83
Review Actual vs. Goals
Goal New Units 16 Goal Labor GP $22,000Actual Net Units 17 Actual Labor GP $15,430
% of Goal 106% % of Goal 70%
Goal Used Units 10 Goal Parts GP $9,700Actual Net Units 8 Actual Parts GL $9,800
% of Goal 80% % of Goal 101%
Weekly
Weekly
Weekly
Weekly
84
Take a calendar and your stack of Action Plans,
and mark the dates to check for
implementation and for the desired results.
During Managers Meeting take time to review
the Action Plans, if changes need to be made
to reach to goal; make the changes!
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
From Forecasting to Goal Setting to Record Breaking
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You Action Plans are your road map for
success.
For the Action Plans that are falling below
expectations, review them and decide what
needs to be done to reach the Goals.
If you need outside help, ask for it!
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
86
Goal Setting To Record Breaking!Goal Setting To Record Breaking!
87
Brooke Samples, President
Profit Blueprints,LLC
1.866.316.7418
www.blueprintforprofits.com
Net Profit ImprovementDealership-Proven Plans for
Profit Blueprints, LLCProfit Blueprints, LLC
From Forecasting to Goal Setting to Record Breaking
Page 29Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
Page 29
Action Plan
Department Priority
Measurable
Goal
How will we
Measure
Person
Responsible
Time Frame
for Completion &
Mini-completion
Strategies
Obstacles to
Overcome
From Forecasting to Goal Setting to Record Breaking
Page 30Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013
Page 30
Senior Management Workshops Last 12 Months:
Russell Grant:
Dealership Data Security in a World of More and More 3rd Party Vendors
Sep 2013 DGi1
Jeff Sacks:
Key Performance Indicators - The "Keys" to Professional Dealership Management & Growth
Aug 2013 DGH5
Christine Andrews and Rob Campbell:
The Habits & Practices of the Exceptional Automotive Controller
Aug 2013 DGH4
Erik Nachbahr:
How to Harness 21st Century Technology for Increases in Staff Efficiency, Computer Security & Cost Control
Aug 2013 DGH2
Jim Flint:
How to Avoid the Bermuda Triangle of Advertising Expense in Your Dealership or Group
Jul 2013 DGG3
Phillip Sherman:
TeleCom Tech Confusion: Cut Through the Clutter of New Technologies and Applications for Dealership TeleCom Systems
Jul 2013 DGG2
Mike DelGiudice & Lisa Reynolds:
Dealership IT and Data Security in an Age of Multiple Devices and Systems
May 2013 DGE3
Brooke Samples:
What Fixed Ops Mgrs Need to Know about the Financial Statement and Analytical Reporting
Apr 2013 DGD3
Adam Gillrie:
Do-It-Yourselfer’s Guide to Reducing Online Marketing Expenses (and How to Do More with What You Do Spend)
Apr 2013 DGD1
Charles Feuss:
Top 10 Employment Law Issues Facing Car Dealers in 2013
Mar 2013 DGC3
Sandi Jerome:
What Variable Department Managers Need to Know About the Financial Statement…
Mar 2013 DGC3
Doug Austin:
Top Ten Dealership Cost Savers… How Dealers Saved Big Bucks in the Past Year and You Can Too!
Jan 2013 DGA4
Joseph Roznai CPA:
Sales Tax Audits in Dealerships… Large 6 & 7-Figure Judgments are Becoming More Common- Prepare Now!
Jan 2013 DGA3
Paul Gillrie:
How to Analyze Your DMS Billing and Systematically Reduce Costs!
Dec 2012 DFL1
Jodi Kippe & Mercedes Hendricks:
Learn the Secrets and Savings of Consolidating Back Office Operations for Multi-Location Dealer Groups
Nov 2012 DFK2
Phil Kent:
Best Practices for Using Benchmarks to Drive Improved Dealership and Departmental Results
Nov 2012 DFK3
Ken Hantman:
20 D-I-Y Tips to Identify, Prevent and Minimize Threats from Breaches in Dealership Security and Safety!
Oct 2012 DFJ3
John Fisher & Marc Newman:
Affordable Health Care Act Implementation for Car Dealers - What you should be doing right NOW!
Sep 2012 DFI4
Sandi Jerome:
How Lead Controllers/CFOs Can Master the Management of Multiple Dealer Group Locations and Staffs
Sep 2012 DFI3
Steve Nickelsen:
How to Achieve & Maintain 100% Service Absorption.
Sep 2012 DFI2
Page 31
Fixed Operations Management Workshops Last 12 Months:
Don Tipton:
How to Create a "Disney-Like" Customer Experience In Your Dealership Service Department
Aug 2013 DGH3
Greg Criss:
Tips for Turning Your Quick Service Lane from a Loss Leader into a Profit Driver
June 2013 DGF4
Chuck Hartle':
New Parts Pricing Strategies to Profitably React and Adjust to New Factory Parts Systems & Initiatives
June 2013 DGF3
Don Reed:
How to Manage the 8 Controllables of Dealership Service Profits
June 2013 DGF2
Steve Kwiatkowski:
How to Prepare Now for the Inevitable 50% Drop in R.O.s
June 2013 DGF1
Lloyd Schiller:
Improve your Service Dept 15% - 20% thru New Mgt Process and Revised Tech Compensation - Live Case Studies Revealed!
May 2013 DGE4
Sidney Haider:
Seven "Ps" for Success in Accessory Sales
May 2013 DGE2
Clayton Stanfield:
Selling Parts & Accessories on eBay – How Do You Take Advantage Of The Mobile Revolution?
Apr 2013 DGD4
Brooke Samples:
What Fixed Ops Mgrs Need to Know about the Financial Statement and Analytical Reporting
Apr 2013 DGD3
Rob Campbell & Mike Bowers:
What's New and Different in Fixed Operations Pay Plans!
Mar 2013 DGC1
Chuck Hartle':
Six "Pulse" Reports to Measure Parts Inventory Health
Jan 2013 DGA5
Ted Fellowes:
Parts eCommerce- How (and If) Your Dealership Can Profit by Selling Parts Online
Jan 2013 DGA2
Greg Criss:
How the "All Makes/All Models" Business Plan Can Succeed in Your Service Department
Jan 2013 DGA1
Don Tipton:
How to Create a Business Plan For Your Service Department
Dec 2012 DFL3
Mike Nicholes:
How to Plan for Parts Department Success
Dec 2012 DFL2
Joni Stuker:
How to Use a BDC for Fixed Ops Departments!
Nov 2012 DFK2
Ray Branch:
Advanced Effective Labor Rate Engineering!
Sep 2012 DFJ2
Mark Payne:
What Dealers, GMs and Controllers Need to Know About the Parts Dept! And Why Parts Mgrs Need To Keep Them Informed!
Sep 2012 DFJ1
Available for $298 Each at http://store.dealersedge.com …or…Get the DealersEdge Season Ticket Subscription and get a much, much better deal!
Page 32
Sales & Marketing Management Workshops Last 12 Months:
Brian Pasch:
Learn How Google Wildfire is Recasting Digital Marketing Strategies for Auto Dealers
Sep 2013 DGi2
Joni Stuker:
How to Generate Your Own Sales Leads by Effective Prospecting Via the BDC and Beyond!
Jul 2013 DGG4
Jim Flint:
How to Avoid the Bermuda Triangle of Advertising Expense in Your Dealership or Group
Jul 2013 DGG3
Brian Pasch:
Video Marketing Strategies That Sell Cars
Jul 2013 DGG1
Stan Sher:
Evolving BDC Management Strategies: How to Keep Pace With the Changes & Make the New Pieces Fit!
May 2013 DGE5
Sidney Haider:
Seven "Ps" for Success in Accessory Sales
May 2013 DGE2
Jennifer Suzuki:
A Follow-Up Process to Increase Vehicle Sales to Unsold Internet Leads
May 2013 DGE1
Steve Nickelsen:
New Trends in Automotive Sales Force Management - Recruitment, Compensation & Management Style
Apr 2013 DGD2
Adam Gillrie:
Do-It-Yourselfer’s Guide to Reducing Online Marketing Expenses (and How to Do More with What You Do Spend)
Apr 2013 DGD1
Sandi Jerome:
What Variable Department Managers Need to Know About the Financial Statement…
Mar 2013 DGC3
Penny Phillips, J.D. :
Social Media Policy Update - The Rules Have Changed Again!
Mar 2013 DGC2
Brian Pasch:
Advanced Google Analytics for Auto Dealerships - Updated for 2013
Feb 2013 DGB4
Christine Rochelle / Darrah Raneri:
De-Mystifying Social Media Marketing for Auto Dealerships
Feb 2013 DGB3
Glenn Pasch:
Back by Popular Demand -- Basic Google Analytics 101 for Auto Dealers – How to Get Started!
Feb 2013 DGB2
Wade Berquist:
How Some Dealers are Capturing 40+ Additional Units by Selling Cars On the Service Drive!
Feb 2013 DGB1
Joni Stuker:
How to Use a BDC for Fixed Ops Departments!
Nov 2012 DFK2
Jennifer Suzuki:
21st Century Process for Closing More Sales - For Sales & Internet Managers!
Oct 2012 DFJ4
Brittany Richter:
Twitter for Car Dealers 101: How to Generate Site Traffic and Leads
Sep 2012 DFI1
Available for $298 Each at http://store.dealersedge.com …or…Get the DealersEdge Season Ticket Subscription and get a much, much better deal!
Page 33
Profit Tools
Profit Blueprints, LLC
November 2013
Volume 4, Issue 10
Published by:
Profit Blueprints, LLC
9500 S. Ocean Drive, #1903
Jensen Beach, FL 34957
Toll Free: 877.316.7418
Fax: 772.672.3441
blueprintforprofits.com
Editor:
Brooke [email protected]
Mobile: 321.698.9131
Skype: profitblueprints
Dealership-Proven Solutions for Net Profit Improvement
My Number 1 Goal this Week is:
Inside This Issue
10 Worst Sales Will
Make You More Profit
Parts Inventory
Monthly Checklist
2
3
4
It took me many years, but I finally figured out that if you focus on one thing—you
can improve it. It makes no difference if it is in your personal life or your business
life. From improving your grades in school to losing weight to saving money, it
doesn’t matter what you focus on, it improves.
Each year I send you a calendar pad to help you select one goal a week to focus on.
During conference calls, I challenge Managers to pick one process or measurable
item on which they can improve. It could be the number of one-line item repair or-
ders in Service (less than 30%) or the number of appointments set from internet
leads in Sales (60% of better). The point is to take some time and work on one item.
By the end of the year, you have improved 52 things in your dealership or in your
life.
As we get closer to the end to the year, this month I’m selecting for you one process
to put into place—that is to reduce any old inventories or receivables. Have each
department list the 10 oldest from the following categories (if applicable):
New Vehicle InventoryUsed Vehicle Inventory Vehicle Receivables
Contracts in Transit Finance Reserve Receivables Refunds on Cancelled
Finance ProductsFactory Rebates
Service Receivables Parts Receivables Body Shop Receivables Warranty Re-
ceivables Sublet Inventory Parts Inventory (10 oldest parts) Open Repair Orders.
Have the Managers complete the form
and the accounting department run the
schedules to confirm (except Parts In-
ventory). In a Managers meeting, dis-
cuss the items on each list that are aged
and see what is being done to either Sell
the Inventory, Close the Repair Orders or
Collect the Receivables. The following
week, create a new list and compare it to
the previous week’s list. Are you making
progress in reducing these Aged Assets?
St #/ RO
#/Cust #Model/reason/
Description
$$$ Age
1
2
3
4
etc
Page 34