What’s up CEOs!
Having the Auto Dealer Business School in your business can be a great advantage, as it provides access to networks, resources, and assistance. However, even with the best education and resources, auto dealers can still make mistakes that keep them from being profitable.
So let's discuss the top 3 mistakes that auto dealers make, which can lead to financial struggles.
Mistake 1 - Money Management
The first mistake that many auto dealers make is not monitoring their finances. It is crucial to keep track of your cash flow, expenses, and profits. You need to know how much money is coming in and going out, and what you have left over. Understanding your finances is critical to making informed decisions and planning for the future. This is something that is emphasized in the training at the Auto Dealer Business School, and it is vital for the success of your business.
Mistake 2 - Revenue Goals
The second mistake that auto dealers make is not selling enough cars in a 30-day cycle. To be successful in the auto business, you need to sell a certain number of cars each month. If you are not meeting your sales goals, it can lead to financial difficulties. To generate cash flow, you can consider selling cars through third-party financing or cash sales. It is also important to monitor the frequency of your payments and adjust them accordingly to infuse more cash flow into your business. This is especially crucial for buy here, pay here businesses.
Mistake 3 - Manage Profit per Sale
The third mistake that auto dealers make is not hitting their profit minimum on each sale. To maintain profitability, you need to set a profit goal for each sale and do whatever it takes to hit that goal. This means managing your reconditioning process to add more value to your sales and hitting your minimum profit. As mentioned before, you need to set revenue goals for 30 days and buy vehicles to meet those goals. If you are not hitting your revenue goals, you need to work on your profit per sale and adjust your plan accordingly.
In conclusion, running a successful auto dealership business requires a strong understanding of financial management, sales, and marketing principles. Dealerships that fail to prioritize these principles may face financial struggles and even bankruptcy. To avoid these issues, it is crucial to enroll in the Auto Dealer Business School. With the resources and knowledge provided, dealerships can implement sustainable business models and avoid the common mistakes that keep them broke.
If you struggle with these mistakes in your business, schedule a strategy session for the best plan for you moving forward at www.autodealerbschool.com/strategy.