Dynatron Software has teamed up with NCM Associates to introduce the new Quarterly Insights Series. The first episode in this series explores effective strategies for boosting your CP gross profit!
Maintaining a healthy gross profit in your dealership, specifically within your Fixed Operations department, requires more than just offering great service. One often overlooked yet highly impactful strategy is having a well-documented Discount and Price Adjustment Policy.
While many dealerships have informal guidelines, formalizing these policies ensures that your team understands how to handle discounts and adjustments effectively. With the right structure in place, not only can you control profit erosion, but you also empower your service team to make informed decisions, safeguarding your bottom line.
Create and Manage a Documented Discount and Price Adjustment Policy
Every dealer has a policy, whether it is documented or not, and even the absence of a policy is still a policy. The importance of documenting these policies lies in ensuring that the team clearly understands the difference between a discount and an adjustment, as well as how each should be handled differently since they are symptoms of different issues.
Additionally, it is crucial to have tracking mechanisms and metrics in place so that teams can measure their performance and ensure they meet management expectations. This empowers front-line personnel on the service drive to address client needs effectively without compromising the dealer’s gross profit.
Watch this video to learn more!
What Key Factors Make a Successful Discount and Price Adjustment Policy?
When developing your Discount and Adjustment Policy, consider the following key points:
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- Clearly define your targeted allowances for Discounts and Adjustments, ensuring they are distinct from each other.
- Provide written guidelines on the consequences for team members who deviate from the process or exceed their allowed metrics.
- Ensure you can easily report and measure these activities daily, with trends analyzed monthly, quarterly, and annually.
- Assess whether your store’s culture supports the implementation of this new policy.
How Can Dynatron Help Increase My CP Gross Profit?
Based on our transactional data, Dynatron customers are showing a year-to-date 7.4% increase in Customer Gross Profit year over year. How do we make that possible? Our seasoned Coaches have over 1000 years of combined experience, and they conduct over 97K training meetings annually. That means that our Coaches are in direct contact with nearly all of 4,000 of our customers helping them turn their data into actionable plans for success. Increasing CP Gross Profit is just one segment of the big picture our experts can hone in on.
In addition to our Coaches, our data and analytics platform helps to identify inconsistencies when it comes to pricing, improper op-code usage, and more. These insights are the fodder our Coaches then use to help turn your goals into reality. Oftentimes these results are driven right to your bottom line!
Get Started
At Dynatron, our proven data and analytics platform, combined with the expertise of our seasoned Coaches, can help you unlock even more profit potential. Ready to get started? Contact us today to learn how we can help you optimize your operations and boost your CP gross profit.
Stay tuned for the next Quarterly Insight Series brought to you by Dynatron Software and NCM Associates!