Expense Control Strategies for Car Dealerships

Mastering Expense Control

Dealership expenses can be broadly classified into two categories: variable and fixed. Variable expenses fluctuate in proportion to sales and inventory, while fixed expenses remain relatively consistent each month.

Tips for controlling both types of expenses:

Variable Expenses

• Get organized: Consolidate all your expenses into one place and conduct a trend analysis to identify any unusual increases.
• Review vendors regularly: Compare vendor costs and services to ensure you’re getting the best value.
• Create preferred vendor lists: Select vendors based on quality and service, not just price.
• Advertise strategically: Ensure your advertising campaigns are targeted and effective, with measurable success metrics.
• Optimize inventory management: Keep inventory levels aligned with market demand to avoid overstocking.

Fixed Expenses

• Evaluate all expense categories: Examine each expense category to understand why money was spent and identify areas for improvement.

What’s An Easier Way To Control Dealership Expenses?

Brady Ware’s COMPASS Benchmarking tool takes your expense control efforts to the next level. COMPASS empowers you to compare your current and historical financial data across all departments against the most profitable dealerships in the country.

Benefits of COMPASS Benchmarking

By integrating COMPASS Benchmarking into your expense control strategy, you can:

• Identify cost-saving opportunities and areas for improvement across all departments.
• Gain a competitive edge by aligning your financial performance with industry leaders.
• Enhance profitability and efficiency by making informed, strategic decisions.
• Monitor key performance indicators to track progress and adapt to changing market conditions.

Start Investing In Your Own Data

Managing expenses is a critical aspect of dealership success. By combining time-tested expense control strategies with the innovative power of COMPASS Benchmarking, you can navigate the competitive automotive landscape with confidence. Make expense control a core part of your dealership’s culture, and with COMPASS as your trusted ally, you’ll steer your way toward lasting profitability.