From the Editors

Analyzing dealership sales by department

Neil PascaleIf you were to examine current-day dealership revenue and break it out by department, how would it look? And secondly, how different would it be today vs. three years ago when the U.S. economy and our new unit sales were humming along?

I’m guessing the latter won’t be all that different than it was three years ago. Now remember, we’re talking about percentages of departments, not total sales by departments.

So three years ago, metric dealerships’ sales by department broke down this way: 50 percent were from new unit sales, 18 percent service department, 16 percent PG&A, 13 percent preowned units, 2 percent F&I and 1 percent other.

Those percentages were revealed from a national survey of 500 dealerships. The survey was conducted by Irwin Broh & Associates for Powersports Business. Again this summer, we’ve asked Irwin Broh & Associates to do a similar study to see how, or if, those percentages have changed.

So in the meantime, please be aware that Irwin Broh will be calling your dealerships to discuss your business’ sales by department. As we’ve always done, we’ll keep these individual store numbers secret and only publish the compiled results.

As I said, I’m guessing we haven’t changed dramatically in how reliant we are as an industry on new unit sales. I am, however, hoping to see the preowned unit sales percentage rise.

Would that be the case in your dealership?

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button