Dealership KPIs: The Metrics Every GM Should Track Bottom Line Up Front: The dealership KPIs that separate top-decile stores aren’t just about tracking more numbers — they’re about tracking the right numbers with the discipline to act on what they tell you. While most GMs drown in data from their DMS, CRM, and monthly statements, … Read more
Service Absorption Rate: What It Is and How to Improve It Bottom Line Up Front Your service absorption rate is the single most important metric protecting your store from market volatility. Elite dealers maintain 85%+ absorption while average stores struggle in the 60-70% range — and that 15-20 point difference is what separates the operators … Read more
Dealership Gross Profit: Front-End, Back-End, and Total Your dealership gross profit tells the real story of your operation — but only if you’re reading the numbers right. Most dealers track front-end and back-end separately, then wonder why their total gross doesn’t translate to bottom-line profit. The highest-performing stores think about gross profit as an integrated … Read more
How to Increase F&I Revenue: Per Vehicle Retail Strategies Your F&I department generates the highest per-square-foot profit in your store — and carries the highest regulatory risk. When executed properly, F&I can deliver 60-70% of your front-end gross while building genuine customer value. The dealers crushing it in today’s market aren’t relying on payment packing … Read more
F&I Menu Selling: Presentation Techniques That Increase PVR Your F&I department generates the highest profit margins in your store — often delivering 60-80% of your front-end gross on every deal. But it’s also your highest-risk operation. One compliance misstep, one pushy presentation that goes viral on social media, or one pattern of disparate treatment can … Read more
Trade-In Appraisal Guide: Accurate Valuations That Win Trades Your trade-in penetration rate predicts everything. Stores hitting 65%+ on new and 45%+ on used consistently outperform on gross, CSI, and volume. The difference isn’t luck — it’s having a trade-in appraisal guide that your team executes consistently, turning every trade walk into an acquisition opportunity while … Read more
Inventory Turn Rate for Dealers: Targets and Improvement The Metric That Predicts Your Month Your car dealer inventory turn rate tells you more about next month’s performance than last month’s grosses. While most dealers obsess over front-end and back-end numbers after deals are done, the smartest operators know that inventory velocity drives everything else — … Read more
Used Car Department Guide: Building a Profit Center Your used car department guide starts with this truth: it’s either your highest-margin profit center or your biggest cash drain. There’s rarely middle ground. While new car margins keep shrinking and manufacturers squeeze your holdback, a well-run used car operation delivers consistent front-end gross, reliable inventory turn, … Read more
How to Price Used Cars at Your Dealership for Maximum Profit Your used car pricing strategy determines whether you’re sitting on six-figure floor plan interest watching lot rot, or turning inventory fast with healthy front-end grosses. The difference isn’t luck — it’s understanding how to price used cars based on real market data, disciplined aging … Read more
Dealership Profitability: Key Drivers and Improvement Strategies Bottom Line Up Front The stores crushing it in your 20 Group aren’t just lucky with their market — they’ve mastered the fundamentals that separate top-decile dealership profitability from the rest. While average stores chase shiny objects and react to market swings, profitable dealers focus on three non-negotiables: … Read more
