I have been talking with many dealers who are struggling to make ends meet. In addition to looking at all of the expense items, we have been talking about ways to increase per retail unit gross profits. During these discussions a few topics are coming up again and again…and quite often none of the related corrective actions are innovative or new. Sometimes, the best thing a dealer can do is to spend time with your staff reviewing processes to ensure that everyone understands and complies with management’s wishes. For many dealers significant profitability improvements can be attained by simply understanding that…old things are new again.

1. Money Down on first pencil. More money down equates to increased profits.
2. No Discounts on the lot. Our price is a fair price…sell the value of the vehicle.
3. Use the 4 square to focus the customer. Generally, this will be on the payment.
4. Push for more gross…regardless of the current gross.
5. T.O. to a manager earlier and every time. The sales manager can close deals for you and increase your paycheck.
6. Don’t believe the customer regarding payment requirements, money down, etc. Most customers have “held back” on how much the can put down, finance and/or budget on a monthly basis.
7. “If we can agree on the terms, would you take the vehicle today?” – this is a worn out phrase and should not be used; however, you need to ascertain the answer to this question.
8. Provide an opportunity for product sales…including ProPack, Simonize, etc.
9. Lengthen terms to arrive at the desired customer payment.
10. Cost is irrelevant to making a deal with the customer.

Of course, even if a dealer does all of these things, there is no guarantee that he/she will be on easy street. However, when looking at all of the new technology and the new generation of customers, don’t overlook some of these basic steps to improving gross.