Using technology and benchmarking to achieve higher profits

Every dealership uses some form of benchmarking, but the problem is that traditional methods don’t always identify where profitability lies and where it doesn’t. However, this information is important in order to make your dealership as profitable as can be.

Most dealers use basic software to group their revenue, cost of goods, expenses and other miscellaneous activity by account (whether this be alphabetically or by product type). But this doesn’t allow for you to analyze the information properly. Rather, by organizing them according to the following categories, you’ll be able to identify the profitability of each category and their returns:

  • Revenue and profits
  • Expense benchmarks
  • Employee productivity
  • Benchmark for equipment sales
  • Aftermarket benchmarks
  • General and administrative benchmarks