Awesome Tip for Car Dealers and Salespeople (80-20 Rule)
YCDB makes life simple for our Auto Dealer friends in several ways! We previously reviewed the SWOT analysis and ‘Thinking BIG’. Now Mike Ramos dives into another hack that the best car dealers in the business are doing!
Does this sum up your issue if you are a used car dealer: “I need to sell more cars or increase my Profit Margins this year!” If the answer is yes, then you likely need to employ the 80-20 strategy.
Mike discusses the simple process needed to figure out where your time is going. More importantly, you need to know where your profit is coming from TODAY! Don’t go another day without starting the process of knowing how you get your actual profit, not sales.
You might sell 10 cars at a break-even, 10 at a loss, and the next 7 you sell make you a huge profit and making you think that things are fine. Your job is to identify those 7 transactions and figure out how to do more of them, while starting to eliminate those sales that turn out to be loss-leaders. Once you find out where the profit is coming from, you equate how much of your time you are spending on these activities.
Simple stuff from there – perform more activities that earn the most money and less of the activity that loses money. Do something today that your future self will thank you for and remember to aim for the stars because you just may hit the moon!
