Digital Dealer - March 2020 - 15
Floor Plan Strategies
1. Set new inventory reduction
targets at all or selected stores
(caution on gross profits).
2. Electronic contracting to
reduce interest expenses by
reducing in-transit times.
3. Utilize a swap agreement to
pay a fixed interest rate rather
than a fluctuating interest rate.
4. Get vehicles to market
more quickly (reconditioning,
transportation, etc.).
5. Shop floorplan with various
banks - bundle bank services
to reduce floorplan interest.
Marketing Strategies
1. Review supplier spend
- reduce redundant and
over-lapping marketing spend
(some experts suggest 50%
of marketing expenses are
redundant).
2. Standard - Competitive Pric-
March 2020
ing - Negotiate supplier pricing
for all of their services from a
particular supplier, then make
those services and pricing
available to your locations.
3. Focus limited financial
resources on marketing to
current customers - less
costly than acquiring new
customers.
4. Leverage marketing spend
with larger advertising buying
groups to reduce costs for
the same media plan.
5. Performance-based marketing - ensure you can pinpoint
an ROI on each service
provider, or cut them loose.
Facilities
1. Centralize staff - office
functions to reduce real estate
footprint and related costs.
2. Lease excess space to
selected suppliers who have
a constant presence in your
dealership(s) (rental cars,
parts supplier if partnered).
3. Ensure that all real es-
tate-related expenses, i.e.
fixed telecom, IT services, etc.
are shut off on unoccupied
buildings.
4. Cost segregation study.
Complete if acquisition,
renovation or construction
is greater than $500,000.
Designed to shorten the
depreciable life of investment,
which accelerates your tax
deduction for depreciation.
5. Generate revenue - reduce
expenses by investigating
"energy-producing assets"
deployed across your buildings and parking lots (solar
solutions).
Supplies and Services
1. If any of your supplier con-
tracts are more than halfway
through the contract period,
contact the supplier, and see if
they are willing to renegotiate
pricing (new lower pricing)
with an extended term.
2. Begin paying suppliers
with a credit card for cash
discounts rather than points,
as the cashback option can
pay you 1.25% to 1.5%.
3. Implement a preferred
supplier program by reducing
your overall supplier count
in each category, to Increase
your spend and leverage to
achieve lower pricing and
improve business terms.
4. Quote, negotiate, and lock
in prices for supplies and
services for 12, 24, and/or 36
months to reduce costs today
and longer-term.
5. Audit supplier invoices
(uniforms, DMS suppliers) for
potential over-charges against
the original contract or pricing
agreement.
[ d i g i t a l d e a l e r. c o m ]
15
http://www.digitaldealer.com
Digital Dealer - March 2020
Table of Contents for the Digital Edition of Digital Dealer - March 2020
Digital Dealer - March 2020
Up to Speed|Tech, Dealer News, & People on the Move
Culture Three Tips to Improve Retention
Strategic Planning Strategic Planning for Sustainable Future
Leadership Five Lessons From Fearless Female Leaders
Spend Management Best Practices to Reduce Costs & Drive Profit
Fixed Operations What to Charge? How About a Little More Big Boss
Buy/sell a Generational Shift Is Boosting Buy/sell Activity
Meet the Speaker|q&a With Marketing Mastermind Phillip Stutts
Exclusive Interview With Jay Feldman of Feldman Automotive Group
Social Media q&a With Facebook
Speaker/session Spotlight|a Quick Look
Social Media Social Media Spring Cleaning
Ad Spend Marketing for Profit!
Cpo Toyota Led Record Cpo Growth
Fixed Ops Every Service Department Should Have a Salesperson Running It!
Fixed Operations
Digital Dealer - March 2020 - Digital Dealer - March 2020
Digital Dealer - March 2020 - Cover2
Digital Dealer - March 2020 - 1
Digital Dealer - March 2020 - 2
Digital Dealer - March 2020 - 3
Digital Dealer - March 2020 - 4
Digital Dealer - March 2020 - 5
Digital Dealer - March 2020 - Up to Speed|Tech, Dealer News, & People on the Move
Digital Dealer - March 2020 - 7
Digital Dealer - March 2020 - Culture Three Tips to Improve Retention
Digital Dealer - March 2020 - 9
Digital Dealer - March 2020 - Fixed Operations
Digital Dealer - March 2020 - 11
Digital Dealer - March 2020 - Leadership Five Lessons From Fearless Female Leaders
Digital Dealer - March 2020 - 13
Digital Dealer - March 2020 - Spend Management Best Practices to Reduce Costs & Drive Profit
Digital Dealer - March 2020 - 15
Digital Dealer - March 2020 - Fixed Operations What to Charge? How About a Little More Big Boss
Digital Dealer - March 2020 - 17
Digital Dealer - March 2020 - Buy/sell a Generational Shift Is Boosting Buy/sell Activity
Digital Dealer - March 2020 - Meet the Speaker|q&a With Marketing Mastermind Phillip Stutts
Digital Dealer - March 2020 - 20
Digital Dealer - March 2020 - 21
Digital Dealer - March 2020 - Exclusive Interview With Jay Feldman of Feldman Automotive Group
Digital Dealer - March 2020 - 23
Digital Dealer - March 2020 - 24
Digital Dealer - March 2020 - 25
Digital Dealer - March 2020 - 26
Digital Dealer - March 2020 - 27
Digital Dealer - March 2020 - Social Media q&a With Facebook
Digital Dealer - March 2020 - 29
Digital Dealer - March 2020 - Speaker/session Spotlight|a Quick Look
Digital Dealer - March 2020 - 31
Digital Dealer - March 2020 - 32
Digital Dealer - March 2020 - 33
Digital Dealer - March 2020 - Social Media Social Media Spring Cleaning
Digital Dealer - March 2020 - 35
Digital Dealer - March 2020 - Ad Spend Marketing for Profit!
Digital Dealer - March 2020 - 37
Digital Dealer - March 2020 - Cpo Toyota Led Record Cpo Growth
Digital Dealer - March 2020 - Fixed Ops Every Service Department Should Have a Salesperson Running It!
Digital Dealer - March 2020 - 40
Digital Dealer - March 2020 - Cover3
Digital Dealer - March 2020 - Cover4
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