Top Dealership Expense Reduction and New Revenue Generating Opportunities Identified
Fifteen dealership expense reduction and new revenue generating opportunities were outlined Wednesday by StrategicSource of Bloomington, MN, during an Automotive News Power Training webinar.
Here are the 15 opportunities:
- Office Supplies – limit supply choices to high usage, low cost, negotiated options
- Shop Supplies -- limit supply choices to high usage, low cost, negotiated options
- Janitorial Supplies -- limit supply choices to high usage, low cost, negotiated options
- Mats and Carpets – advise uniform supplier to remove rugs/carpets from their supply program
- Waste & Recycling – review contract end dates, re-evaluate containers and actual need
- Uniforms & Laundry – review contract end dates, eliminate redundancies, negotiate rebates
- Credit Card Processing – look for simple statements with all fees disclosed, consolidate to primary and back-up provider
- Credit Bureaus – eliminate double and triple pulls to reduce costs, resellers offer competitive pricing versus going direct to the bureaus, some offer rebates
- Health Insurance – self-funding might be an option, get quotes, process could take six months
- Key Cutting & Fob Replacement – take in-house to offset cost and sell on service line
- Purchasing Card (Virtual Card) – use instead of checks, your dealership’s primary bank should have a program offering 1.25% to 1.8% rebates, Visa, Mastercard & American Express have programs too
- Employment Tax Overpayment Credits – if you made an acquisition within the last three years, you can recover the unemployment and employment taxes the previous owner may have paid. Not available if acquisition occurred in first part of the year.
- Transportation Shipping & Recovery -- 3% to 7% of shipments by FedEX and UPS do not meet agreed upon terms. When that happens, you are entitled to a 100% refund. Must be claimed within 15 days and most claims are rejected the first time. Work with a recovery provider to manage.
For more information, contact StrategicSouurce at firstname.lastname@example.org or text (612) 386-3898.