The fifth webinar in the NADA Dealership Lifeline Webinar Series, Build a 60 Day Profit Protection Plan, explored how dealers can quickly adapt to the circumstances caused by the coronavirus pandemic and positively impact the profitability of their businesses. Presented by Doug Austin, President of StrategicSource, a leading expense management services and compliance provider, the webinar offered insights on using data to create and benchmark a dealership profit protection program.
Austin’s top advice to dealers: Look for discounts and ways to reduce redundant and over-lapping spending as soon as possible. He also recommended contacting vendors and suppliers, particularly high-spend suppliers, and requesting an immediate discount – whether it’s 25% or 50% off the monthly invoices.
Once initial spending is mobilized, Austin recommended looking at vendor and supplier savings in the longer term. “Begin gathering up invoices for high spend categories to begin benchmarking with an objective of either renegotiating with suppliers or replacing those suppliers,” said Austin, based in Minneapolis, Minn.
“Focus on ‘stopping the bleeding today’ and then shift your mindset into longer term cost reductions right after that,” added Austin.
During the webinar, Austin also underscored the importance of data: “Data is power,” he noted. “Data enhances the leverage the dealer will have. Data will also tell the dealer how many suppliers they have, sub-optimizing their leverage if they have too many suppliers and allowing them to set a more effective and efficient strategy.”
Other strategies Austin outlined during the webinar included focus more limited financial resources on marketing to current customers and services review; explore warranty uplift opportunities with OEMs; centralize services and digitize where possible; and ensure all real estate related expenses are shutoff on unoccupied buildings.
A recording of the webinar is now available to NADA members here.
Note: NADA’s webinar is offered for general informational purposes only. The presentation materials are provided by StrategicSource, who is solely responsible for the contents of the presentation. NADA assumes no responsibility or liability for the contents of the presentation.