Most 20 Groups just compare the current year to the prior year, but over at Spader we spend more time comparing current performance against the dealer’s budget. Why? Because a budget is a plan for success and tracking your dealership’s performance against it can help a dealer to adjust along the way, still making money at the end of the year regardless of the curve balls thrown by the market.
Why is a budget important?
– You know how many employees you’ll need to make it happen.
– It defines correct inventory levels both in sales and in parts/accessories.
– Holds managers and employees accountable.
– Lets you know how much you have to spend on variable expense items like advertising.
– And most importantly – it allows a dealer to make course corrections throughout the year. Comparing actual performance against planned can help a dealer to stay in the black even when the market doesn’t want to cooperate.
Going into the new year without a budget is like driving cross-country without a map.
If you are tired of doing autopsies on your P&L at the end of each year, then consider joining a Spader 20 Group and go into 2020 with the confidence that this will be a great year!
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