Winning in today’s tough market requires a solid game plan, one that consists both of an offensive approach (gross generation) and strong defensive measures (expense control). In fact, cost cutting is a necessary part of any disciplined plan, and most dealerships can benefi t by taking a more strategic approach. For starters, focus on the critical areas that represent the best opportunities for cuts. They include personnel (both head count and pay plans), variable expense, policy (that notorious catch-all category), advertising, and floorplan interest expense. Then stay on the defensive by working cost cutting into your overall business planning.
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Length: 4 pages (PDF 623 kB)