making pre-owned front & center presented by: gart sutton
TRANSCRIPT
MAKING PRE-OWNED FRONT & CENTER
Presented by:
GART SUTTON
MAKING PRE-OWNED
FRONT & CENTER
WELCOME!
• Who is Gart Sutton?
• Who is GSA?
MAKING PRE-OWNED
FRONT & CENTER
Why should you be in the pre-owned business?
The Five Critical Reasons:
1. Pre-owned sales offer you a higher gross profit potential than new.
2. Pre-owned helps you to increase the volume of your new unit sales.
3. Stocking pre-owned products increases your floor traffic.
4. Selling pre-owned increases your sales of F&I products.
5. Selling pre-owned increases your parts and service sales.
MAKING PRE-OWNED
FRONT & CENTER
Current Benchmarks (Metric)• Total Preowned Gross Profit Margin: Above 20%
• Preowned–to-new Ratio: Over .5:1 (2 new to 1 pre-owned)
• Yearly Inventory Turns: 3 – 4
• Retailed versus Wholesaled: 75% retailed
Actual examples from dealers who are doing a good job:
New Dlr A Data
Dlr B Data
HD Dlr Data
New M/C Gross Profit % 11.3% 14.5% 19.7% New ATV Gross Profit % 7.7% 16.2% Preowned
Preowned M/C GP % 26.0% 26.4% 15.6% Preowned ATV GP % 25.6% 27.9%
MAKING PRE-OWNED
FRONT & CENTER
The Rules of the Game
• What is the #1 rule of profitability?
• What is “The Formula?”
• What does “Market Value” mean?
• When is it “used,” and when is it “pre-owned?”
MAKING PRE-OWNED
FRONT & CENTER
The 5 Steps to ProfitabilityStep 1: Acquisition
– Where do they come from?
Step 2: Appraisal
– Rule 1: Always use an Appraisal Form
Step 3: Reconditioning
– How soon?
– How much?
MAKING PRE-OWNED
FRONT & CENTER
The 5 Steps (cont’d.)
Step 4: Merchandising
– Display
– Accessories
Step 5: Advertise and Promote
– Promote your business as well as units
– What are some effective promotions?
MAKING PRE-OWNED
FRONT & CENTER
Sales Tips
1. Hire and train an effective sales team
2. Follow a structured sales process
3. Treat the pre-owned buyer properly
4. Clarify sales manager duties
5. Provide goals and incentives
6. Consider a separate pre-owned sales staff
MAKING PRE-OWNED
FRONT & CENTER
Thank you!!
Contact us:
Gart Sutton
www.gartsutton.com
(615) 465-2008