May be an All-Right Year
NCM Associates calculates and produces dealership benchmarks based on the average of the top 50% of our clients by category. It reflects what's happening in the real world. It's not a destination, but a real-time comparison tool. We'd prefer to see a better performance than some current benchmarks indicate, but this is today's actual retail environment. Review the information on the benchmark chart
February 1, 2003
NCM Associates calculates and produces dealership benchmarks based on the average of the top 50% of our clients by category. It reflects what's happening in the real world.
It's not a destination, but a real-time comparison tool.
We'd prefer to see a better performance than some current benchmarks indicate, but this is today's actual retail environment.
Review the information on the benchmark chart on page 57. Note, especially in asset management, a decline in performance vs the previous quarter in new- and used-vehicle days' supply, used-vehicle inventory turn, and % of units in excess of 60 days.
The industry must concentrate on improving their efficiencies this year. We must find methods of maximizing our results while minimizing expenditures. We must maximize employee productivity, while controlling expenses and inventories.
This year has profit potential if we focus on basics and use best practices.
Tony Noland ([email protected]) is the president and CEO of NCM Associates, Inc.
NCM Associates Key Benchmark Category | Domestic | Our Dealership | Import | Our Dealership | High Line | Our Dealership |
|---|---|---|---|---|---|---|
Net Profit As % Total Sales | 3.5% | 4.2% | 5.3% | |||
Departmental Gross % Dealership Total | ||||||
New Vehicle Department | 33.0% | 41.3% | ||||
Used Vehicle Department | 27.3% | 23.1% | ||||
Mechanical Service Dept. | 19.5% | 21.1% | ||||
Body Shop/Collision Repair | 7.8% | 9.5% | ||||
Parts Department | 15.2% | 13.1% | ||||
Departmental Profit % Dealership Total | ||||||
New Vehicle Department | 33.7% | 45.5% | ||||
Used Vehicle Department | 24.6% | 13.1% | ||||
Mechanical Service Dept. | 11.0% | 22.5% | ||||
Body Shop/Collision Repair | 2.0% | 2.3% | ||||
Parts Department | 28.0% | 16.7% | ||||
Key Expenses % Total Dealership Gross | ||||||
Employee Expense | 34.9% | 32.0% | ||||
Advertising/Promotion | 7.8% | 8.1% | ||||
Total Interest | - 0.5% | - 0.3% | ||||
Expense Category As % Total Expenses | ||||||
Selling | 27.0% | 28.8% | ||||
Employment | 44.1% | 41.5% | ||||
Other Overhead | 13.8% | 14.8% | ||||
Occupancy | 15.1% | 14.7% | ||||
Employee Measurements | ||||||
Gross Per Employee Average Month | $6,989 | $8,196 | ||||
Productive Employees % Total Employees | 55.3% | 57.1% | ||||
Techs (Body + Mech) % Total Employees | 23.3% | 19.8% | ||||
New & Used Veh. Sales Pers. % Ttl. Emp. | 22.5% | 25.9% | ||||
Managers % Total Employees | 13.7% | 13.1% | ||||
Clerical % Total Employees | 12.4% | 11.4% | ||||
Asset Management | ||||||
New Car $ Days Supply | 56 | 35 | ||||
New Truck $ Days Supply | 52 | 72 | ||||
Used Car $ Days Supply | 57 | 44 | ||||
Used Truck $ Days Supply | 46 | 60 | ||||
Parts Inventory | 63 | 57 | ||||
Used Vehicle Performance | ||||||
Inventory Turn - Cars | 0.5 | 0.6 | ||||
Inventory Turn - Trucks | 0.6 | 0.4 | ||||
% Total Used Car Inv'y 61 Days+ | 17.4% | 9.9% | ||||
% Total Used Trk Inv'y 61 Days + | 16.5% | 14.0% |
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