How to Build a Profitable Dealership

𝗧𝗼𝗽-𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗱𝗲𝗮𝗹𝗲𝗿𝘀 𝗸𝗻𝗼𝘄 𝘁𝗵𝗶𝘀 𝘁𝗿𝘂𝘁𝗵:  𝗦𝗲𝗹𝗹 𝘁𝗵𝗲 𝗺𝗮𝗰𝗵𝗶𝗻𝗲 𝗼𝗻𝗰𝗲. 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗶𝘁 𝗳𝗼𝗿𝗲𝘃𝗲𝗿. 𝗧𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁 𝗶𝗻 𝘁𝗵𝗶𝗻𝗸𝗶𝗻𝗴 𝗶𝘀 𝘄𝗼𝗿𝘁𝗵 𝗺𝗶𝗹𝗹𝗶𝗼𝗻𝘀... After working with hundreds of heavy equipment dealers, I can confidently say the most profitable dealers aren’t the ones that obsess over machines… They build FORTUNES through parts and service. Here's the math that seems to get swept under the rug: A $500,000 excavator might earn 12% commission ($60,000). Impressive, right? But wait... When a part costs $1,000 with a 50% margin, you need to sell just 120 parts to make the same profit. (𝘵𝘩𝘢𝘵 𝘥𝘰𝘦𝘴𝘯'𝘵 𝘦𝘷𝘦𝘯 𝘤𝘰𝘶𝘯𝘵 𝘵𝘩𝘦 𝘵𝘦𝘤𝘩𝘯𝘪𝘤𝘪𝘢𝘯 𝘭𝘢𝘣𝘰𝘳!) Let that sink in. The dealers who understand this secret don't just chase the next big sale. They create recurring revenue streams that weather economic downturns. The top 1% of dealers I work with obsessively track metrics like: 💡 Parts (first-time) fill rates 💡 Warranty recovery 💡 Technician efficiency/utilization 💡 First-time fix rates 💡 Inventory obsolescence When a customer calls with a down machine that's bleeding money by the hour, these dealers become HEROES by getting them back to work quickly (and without all of the needless stress). Meanwhile, sales-focused dealers scratch their heads wondering why their revenue fluctuates wildly month to month. It's not glamorous. It's not sexy (but the health of the business sure is 😍) 𝗣𝗢𝗩: 𝘗𝘢𝘳𝘵𝘴 𝘢𝘯𝘥 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘪𝘴 𝘸𝘩𝘦𝘳𝘦 𝘩𝘦𝘢𝘷𝘺 𝘦𝘲𝘶𝘪𝘱𝘮𝘦𝘯𝘵 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴 𝘣𝘶𝘪𝘭𝘥 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘭𝘦 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴. 𝗣𝗿𝗼 𝗧𝗶𝗽: 𝘐𝘧 𝘺𝘰𝘶 𝘢𝘭𝘪𝘨𝘯 𝘺𝘰𝘶𝘳 𝘳𝘦𝘸𝘢𝘳𝘥𝘴 𝘱𝘳𝘰𝘨𝘳𝘢𝘮𝘴 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘰𝘶𝘵𝘤𝘰𝘮𝘦𝘴 𝘺𝘰𝘶 𝘴𝘦𝘦𝘬, 𝘺𝘰𝘶'𝘭𝘭 𝘴𝘦𝘦 𝘣𝘦𝘩𝘢𝘷𝘪𝘰𝘳 𝘤𝘩𝘢𝘯𝘨𝘦 𝘸𝘪𝘵𝘩 𝘭𝘦𝘴𝘴 𝘧𝘳𝘪𝘤𝘵𝘪𝘰𝘯. 𝘛𝘩𝘦𝘯 𝘺𝘰𝘶 𝘤𝘢𝘯 𝘤𝘰𝘮𝘱𝘢𝘳𝘦 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 (𝘮𝘢𝘳𝘨𝘪𝘯𝘴) 𝘢𝘤𝘳𝘰𝘴𝘴 𝘥𝘦𝘱𝘢𝘳𝘵𝘮𝘦𝘯𝘵𝘴.

What if I told you your dealership’s biggest profit leak isn’t in your sales process – it’s hiding in your untouched data? Most dealerships think they know their customers, but data says otherwise. The goldmine isn’t in more leads – it’s in better intelligence. Here are 3 strategies that could transform your 2025 results: 1. Predict Trade-In Timing 🚗 🔹 Analyze service history + vehicle age/mileage. 🔹 Identify customers likely to trade within 90 days. → One dealership boosted trade-in capture by 18% using this exact method. 2. Mine Your Service-to-Sales Pipeline 🔧 🔹 Cross-reference declined repairs with financial profiles. 🔹 $2000+ in declined repairs on 5+ year-old cars? → Those are prime sales leads waiting for the right offer. 3. Precision Inventory Matching 📊 🔹 Combine DMS data with in-market signals. 🔹 Predict what buyers actually want, not what you think they want. → Dealers reduced aged inventory by 27% and grew front-end gross by aligning stock with real-time demand. Ready to unlock the hidden potential in your data? Let’s connect – I’d love to show you how. #QoreAI #DealershipProfit #AutomotiveInnovation #DataDrivenSales #AutomotiveRetail

With almost every dealership I work with (Powersports, Marine, RV) the service department is almost always treated as an afterthought. I can count on one hand (not using all my fingers and ignoring my thumb) the number of Powersports dealers I believe have a world class service operation. The recently Car Dealership Guy newsletter had some great points on service. In summary: At the core of every successful dealership is its fixed operations department—a profit engine responsible for about 50% of the dealership's gross profit. But the true drivers of this engine are the auto technicians, and here’s the challenge: skilled techs are increasingly hard to find and even harder to keep. According to WrenchWay’s Voice of the Automotive Technician Survey, dissatisfaction among techs is on the rise. To counter this, top dealerships are innovating, offering not just competitive pay structures like flat rate with performance bonuses, but also guaranteed minimums and hourly pay for entry-level techs. It’s about showing technicians their worth from day one and creating a compensation model that values productivity and loyalty. Beyond pay, career development is a game-changer. Only 29% of techs report having a clear career path—a steep decline from last year. Forward-thinking dealerships address this gap with detailed action plans, mentorship, and training programs tailored to each tech’s skill level. Whether it’s structured 90-day development cycles or six-month certification tracks, these initiatives are giving techs clarity, purpose, and a tangible way to grow their careers. For entry-level techs, added support like hourly pay during their first year makes it easier to transition into full productivity while retaining talent that might otherwise leave. Finally, innovation is reshaping how dealerships support their techs. From four-day work weeks reducing turnover to robotic parts runners saving valuable time, these operational enhancements make technicians’ lives easier while boosting shop efficiency. The results? Faster repair times, happier employees, and better customer experiences. It’s clear: the dealerships treating technicians as their most valuable assets are turning their service departments into unbeatable profit centers—and setting the gold standard for the industry. If you had to rate your service department on a scale of 1-10 (the entire operation, not just the facility) where does it fit in? In case you need some starters: - 1 Dirt Floor - No AC - Owner doesn't know the names of half the techs. Everyone actively avoids entering this area. - 10 Customers rave about how well they were treated and proactively post reviews online without being pestered. Sales team uses the service department as a closing tool. Be honest! If you'd like to sign up to receive CDG content, here's the link. https://lnkd.in/eyZzTtnV #CarDealershipGuy #Powersports #Marine #RV