auto dealer day session: should your dealership do retail ......understand your indicators...
TRANSCRIPT
Tuesday, March 28
3:30pm - 4:25pm
Auto Dealer Day Session:
Should Your Dealership Do Retail Rentals In
Addition To the Courtesy Transportation
Program?
Presenters:
Angela Margolit and Rob Hano
Bluebird Auto Rental Systems
Should Your Dealership Do
Retail Rentals Too?
Presenters
Rob Hano
National Sales Manager
Angela Margolit
President
But first…
TURN OFF THOSE PHONES!!
Agenda
1. Why?
2. How?
3. Who can help?
4. Gathering Data
5. Technology
A Little History
Why Brand Your Rental/Loaner
Operation?
Leverage your existing infrastructure and customer baseCost advantage: shared expensesCustomer service advantage: you are in control
New source of business: revenue diversification, including the sale of ancillary products (such as fuel, CDW, and upgrades)
Create outlet for used vehicles (late model)
How?
Run your Operation as a Profit Center
Set Pricing based on Utilization & Competition
Manage your Fleet
Sell Products and Upgrades
Prevent and Manage Losses
Deliver Top Notch Service
Task List
Insurance
Contract Terms & Conditions
Marketing: All the traditional methods you use
for your dealership (Social Media, Radio, TV, Print, Direct Mail, Web)
The Web
Web Portals: Brokers, such as CarRentals.com & Kayak
Global Distribution Systems (GDSs) Chain Code: A unique 2-character
identifier across all channels
Who Can Help?
Other Dealers Franchisors Insurance Companies Consultants (CIRAS/Schalberg) Technology: Counter Software,
Website Integration
Gathering Data
The next few slides have been compiled by Andres Lezcano, one of our fantastic Bluebird Account Managers!
Understand Your Indicators
Utilization = Units on Rent / Total Fleet
Time & Mileage (T&M) = Base Rate x Days on Rent
Daily Dollar Average (DDA) = Revenue / Rental Days
Revenue Per Unit (RPU) = Revenue / Avg. Fleet
Length of Rental (LOR) = Rental Days / Closed Contracts
Yield = Ancillary Revenue / Rental Days
No-Shows = (Reservations - Closed Contracts)
No-Show Percentage = No-Shows / Total Reservations
Revenue Per Transaction (RPT) = Revenue / Closed Contracts
Rental Revenue
Operating Revenue
Accrued Rental Income
Rental Income (T&M)
Additional Driver
Collision Damage Waiver
Personal Accident Insurance
Supplemental Liability Insurance
Under Age Driver
Upgrade
Baby Seats
Other Revenue
Miscellaneous Revenue
Income
GPS Income
Road Side Service
Assistance
Interest Income
Direct Operating Expenses
Vehicle Fuel Expense
Tires
Washing Supplies
Mechanical Repairs and Parts
Glass Repairs
Depreciation - Shop Equipment
Damage Repairs
Damage Credits
Vehicle Towing
Maintenance or Lease –Shop Equipment
Service Vehicle Expense
Preventive Maintenance
Fines & Penalties
Vehicle Insurance
Miscellaneous Expenses
Local Shuttling and Tolls
Claim Payouts
Sales and Fleet Expenses
Sales Expenses
Reservation Expense
Advertising and Sales
Promotion - Local
Commissions - Travel
Agents
Customer Appeasement
Online & Other
Advertising
Fleet Expenses
Vehicle Depreciation
Vehicle Tags Taxes
Inspection
Vehicle Lease Expense
Gain/Loss on the Sales of
Vehicles
Variable & Premise Expenses
Variable Expenses
Credit Card Commissions
System Fees & Royalties
Miscellaneous Variable Expense
Premise Expense
Premise Expense
Rent - Fixed
Utilities
Maintenance of Premises
Depreciation - Leasehold Improvements
Property Taxes
Personnel and G&A Expenses
Personnel Expense
Salaries and Wages
Employee Benefits
Contract Labor
Admin Consulting
Employee Welfare -Insurance
Payroll Service
Miscellaneous Personnel Expenses
Uniforms and Supplies
General & Administrative
Office Supplies and Postage Depreciation:
Furniture/Fixtures Bank & Credit Card Charges Computer Related Expenses Management Fees Telephone/Communications Meals/Other Travel Donations & Sponsorship Insurance - Non Vehicle Miscellaneous Expense
Leveraging Technology
The Rental Software Advantage
Computerized Contract Agreement Processing
Comprehensive Fleet Management
Reservations Planning
Data collection for Statistical Analysis
Mobile Loaner Solutions
Accident Claims Management
Reporting capabilities by customer, vehicle status and repair order
Customer Record Keeping
Repair Order Tracking
Posting of daily transactions to accounting at the end of the day
DMS Interface
Website Interface
Signature Pads
Credit Card Processing via Chip & PIN devices
If you would like a copy of this
presentation, please give us your
business card.
Thank You!