Leaving cash on the table. You’re all guilty.
You got ‘em! A shiny new customer just drove off your lot with a shiny new car. You spent a lot of money to get them to come into your showroom and really pushed your sales team to capitalize on that opportunity. Your website helped, too. Lot’s of great pictures of vehicles, great specials, and an up-to-date inventory all worked together to really highlight your dealership. Your retail game is on point and it just paid off.
But, are you satisfied with only 3.8% margins on that new vehicle sale? You shouldn’t be. You know your dealership truly sees its revenue flow in from that customer coming back, year over year, to your service department. In fact, according to NADA, service accounts for almost 60% of the profits for the average dealership.
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