Auto Dealer Monthly

APR 2013

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

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V IE W P OINT S LICENSE TO ACCESSORIZE HAS YOUR DEALERSHIP BEEN SUCCESSFUL AT SELLING ACCESSORIES? Helms Bros. MercedesBenz�� has embraced the idea of accessory sales in our business ofces. In the past, our clients were buying cars from us, then taking them down the street to be accessorized. Tis created a couple of dilemmas: Te frst was the obvious lost opportunity. Te second was spotty�� ���pimp-my-ride��� installations, as the same people putting neon in the headlights of your neighbor���s 1993 Honda Civic��hatchback were adding illuminated running boards to our clients��� brandnew $100,000 GLs.��And because of that, our MAILBAG TO TOM HUDSON: I came across an article you wrote back in 2011 about bird-dogging. You talked about how dealers should not compensate individuals for helping sell a vehicle. But what if a dealership partners with a not-for-proft organization, like a community group, on a fundraiser where we give them $50 for every referral that ends in a sale. Would that be illegal? Would it be considered bird-dogging? Anonymous Tanks for the note, Anonymous. You���d think that the law would be sensitive to organizations that do good. Although sometimes you���ll see a charitable organization exemption for some laws, such exemptions are far from common. At the end of the day, you have to look at your state���s laws and the defnitions it uses to see whether there���s wriggle room for your non- service department was fooded with cars full of��structural and electrical issues.�� Te accessory portion of our process was born from our clients��� demand for us to perform high-quality customizations on their Mercedes-Benz. We spoke with our clients and came up with a group of products that ofered them the most value and complied with warranty regulations. Next, we found an installer with impeccable knowledge of Mercedes-Benz and a reputation for highquality work.���� Today, we ofer accessories to every client on write-up and can usually accommodate their purchases prior to their vehicle delivery. Te accessories include basic items like rubber mats and window tint to more complex items like remote start, rear-seat entertainment systems, 3M clear bumper guards and running boards.�� We also have done many custom jobs like leather-wrapped TV���s, lighting packages and Xenon headlights. For us, the accessories portion of our process is as important as the menu presentation in the F&I; ofce. Te revenue generated from accessories accounts for around 40 percent of back-end proft. We feel accommodating our clients in this way��is not only a proft center, it adds massive amounts of value to our capabilities as a dealer. Adam B. Arwas Business Manager Helms Bros. Mercedes-Benz Bayside, N.Y. proft. As always, you���ll want to confrm with your lawyer, too. ��� Tom Hudson at your changes in cash and other balance sheet accounts to help you see where the frozen capital really is and lets you set goals. Remember, the higher your assets are generally refects in increased working capital guides issued by the factories. So it does pay to manage your current assets and keep them as current as possible to minimize any problems with capital injections needed in the future. ��� David Keller TO DAVID KELLER: Great job on your article (���Cash Flow Is Everything,��� Page 8) in Auto Dealer Monthly magazine���s February edition. I do have one question: Can you provide some cash-fow calculation examples that a dealer could use? Brian Payton Service Manager Sheehan Buick GMC Fort Lauderdale, Fla. Brian, thanks for the compliment. I have a nice cash fow calculation I can send you. It���ll help your dealership track cash fow. Now, most fnancial statements already give you frozen capital and working capital calculations. Te example I���ll send you looks FOR THE RECORD In last month��s Sales Professional of the Month article, the magazine incorrectly listed Mo Chahine as being an employee of Independence Auto Center. While Independence Auto Center does operate under Zein Auto Group, Chahine works for Best Bet Auto in Everett, Wash. Auto Dealer Monthly regrets the error. GOT A QUESTION OF THE MONTH? To appear in May���s Viewpoints, please answer the following question: How is your dealership keeping up with the changes taking place on Google? Please submit your answer and a photo to Executive Editor Gregory Arroyo at Gregory.Arroyo@Bobit.com. The magazine also welcomes any comments or questions about any of the articles appearing in this month���s issue. ��� Auto Dealer Monthly 6 AUTO DE ALE R MONTHLY ��� APRIL 2013

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