Economic decisions in an uncertain business climate
Our financial world seems out of whack and will probably continue to be for the rest of the year. This leaves dealers and their customers to generate two or three business plans for the rest of the year, hoping that the plan they decide to use generates positive cash flow and at least a decent gross profit margin for the full year. I included your customers in this process because their decisions will impact both your top and bottom...
AI and Robots are aiming for dealers. Are you prepared?
Last month, we covered performance gaps and how to avoid them because if you cannot prevent them, there is a very high percentage that the company’s value will be less than it is today. Even though management would like to avoid performance gaps, doing so is a significant cost. And who wants to invest $100,000 + to do the “fix” and then find out it will not work as intended, which includes a negative return on the initial...
Does your dealership have a performance gap?
As you know, I love to review business and industry data daily. I probably read 100 emails daily and receive various industry and financial magazines monthly. I find it notable how the content today compares to what I read five years ago. Even with my financial mind, I see some of this new data requires a new level of understanding, especially if a dealer wants to keep their current competitive edge. Companies must adapt to new costs...
Profit-Sharing Plans are making a comeback
Profit-sharing plans (PSPs) have been around for decades. Employers may use them to attract and retain workers and incentivize employee productivity. However, PSPs have gradually faded into the background as 401(k) plans gained popularity. In today’s tight labor market, some proactive employers implement PSPs to help them stand out. Should your company jump on the bandwagon? Here are some key factors to consider. The Basics PSPs...
You know what they say…..
I hope you had a splendid holiday week! There certainly were plenty of football games to watch. Besides a wicked hockey schedule related to my grandson’s two players, which is tough to handle when you have two players on different teams, it was a fun weekend and a relaxing Christmas week. I spent a lot of time thinking about all the issues I mentioned in last month’s column and how they will impact the markets I follow,...
TRUMP mandate. How will it affect your dealership?
Many of you probably had your 2025 plan in place before the election. If I had to guess, there is about a 50/50 split between those expecting higher taxes and regulation and those looking for lower taxes and less regulation. It seems like 50% got it right to some extent. Not bad. Either way, it is time to zero in on planning for 25. This will not be easy because your options to improve your business are numerous and complicated, and...
Think CASH in ’25
Last month, I suggested that dealers compare their 24 results against their peers’ accounting and cash flow budgets. I also stated that the month’s topic would be free cash flow, which we will discuss after a few additional topics that need to be on your radar for ’25. Take a look at the markets that are used for your product line. How are the Fair Market Value (FMV) and Forced Liquidation Value (FLV) stats coming along?...
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