Podcast: The True Success Metric for Auto Dealers

If your lot holds 100 used cars and you sell 100 cars in a month, conventional wisdom says, “great job, you turned over your entire inventory.” But in an era with so much valuable data available, dealers have to take a deeper look at their potential.

At DealerSocket, we don’t just look at the speed and frequency of inventory turnover. We look at Profit Per Day, a simple calculation that looks at the profit a dealer makes on a car, divided by the number of days it took to sell.

Why Profit Per Day?

The most valuable asset at your dealership is not the car you’re selling, it’s the parking space where the car is sitting. Profit per day is important because it allows you to truly analyze how much value you are getting out of each space. If your profit per day is lower than expected, you can adjust your aging strategy.

What is the Optimal Profit Per Day Goal?

Based on what we see with our most successful dealers, $100 is a really good profit per day. That number may vary from dealer to dealer, but $100 is a good goal.

To hear Sr. Customer Success Manager Erik Post and National Director of Customer Success Jeff Landwehr discuss profit per day and important elements of a good aging strategy, listen to the DealerSocket podcast.

To hear the entire conversation, check out the DealerSocket podcast.

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Further Reading:

Customer Success White Board | It's Time to Ditch the Four Square

Customer Success White Board | It's Time to Ditch the Four Square

See why profit per day is the metric you need to track to improve the overall health of your dealership.

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Automotive Podcast | The Difference Between Aging Policy and Aging Process

Automotive Podcast | The Difference Between Aging Policy and Aging Process

Auto dealers need more than an aging policy, they need a solid process to maximize the profit on each car on their lot.

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Customer Success White Board | Why you need to run your dealership like a casino

Customer Success White Board | Why you need to run your dealership like a casino

See why profit per day is the metric you need to track to improve the overall health of your dealership.

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The Best E-mail Capture Goal (and how to reach it)

The Best E-mail Capture Goal (and how to reach it)

How to set the best email capture goal for your dealership, build it into your sales process, and utilize the available tools to reach it.

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