In this example, the customer has sold 4 units. 2 of them represent book losses that had caused some issues within the dealership. As it turns out both of those were “green” transactions that beat the market. Still plenty of pain to be spread around, but less than we thought. One of these transactions was a GM “home run” that slightly underperformed the market represented by the yellow bar. We should have made MORE on this truck!
#2 Where should we focus our next 30 days?
We take the same methodology and apply it to the trucks on your lot. We compare our market data against your trucks. Then we point out areas where you are exposed and need to limit your losses or have bought very well and should be making lots of money.
#3 What is the underlying health of my business?
We also make sure we don’t lose sight of the forest for the trees. While it’s important to know specific areas of strength and weakness, the overall health of the lot is important to see. To make sure everything is OK here we take a step back and make sure that some key metrics are improving month over month. In this example, things are getting better. Red means bad, yellow means OK, and green means good.
