Video Tip by Terry L. B.Myers
Contact City Hall and the county courthouse for zoning, code compliance and occupational licensing (sometimes called tax certificate).
SIGNS: The Division of Motorist Services has definite requirements for signage. The Compliance Officer will check for proper language and visibility requirements.
Contact the city and county for sign ordinance requirements as well. Don’t spend money on signs until all parties agree.
LOCATION / DISPLAY SPACE: The minimum requirements by the Division of Motorist Services include an office of 100 square feet. That is a 10 X 10 room. Display space must be contiguous and have dedicated space for whatever your maximum number of vehicles offered for sale might be. For example if you would never have more than one vehicle displayed at any one time then you need to have one dedicated display space. This can be inside or outside. Some dealers start in a commercial garage complex.
There is no requirement to actually have a vehicle in the display space unless the customer comes to your location to view it. There is no requirement to actually sell a vehicle, although this proves to be very unprofitable.
You need to have public parking…room for your vehicle and room for the customer’s vehicle.
City and county codes are extremely important for you to comply with. These can be much more restrictive than state Division of Motorist Services requirements. See LOCATION above.
PROFIT: Buy low and sell high. This will never happen until and unless you know who your customers are, what they want and what they are willing to pay.
Once you determine the above find out where these vehicles are attainable and what they are going for at the wholesale level. Joining auctions such as Manheim and Adesa, among others gives you access to information needed before you make that purchase.
Check competitor locations for inventory and retail pricing to assure you don’t price yourself out of the market.
Giving your product away is financial suicide. The cheaper you sell the more problems you seem to inherit. You are entitled to a fair price and profit.
Try the five-mile strategy: You are in the middle of a five mile circle. Most of your future customers will come from here, if you have a street visible location.
From your dealership, once a year, drive two and one-half miles up and down each street around your dealership and notice what vehicles are parked in driveways and parking lots. This will help you determine what type and price range you might want to display on your lot.
The WORLD wants what you have to sell. Establish an Internet presence. Let future customers know what you have for sale and they will seek you out. Customers do not search by dealer size, they search for the vehicle they want.
Truth in advertising rules apply.
THE FIRST TWELVE MONTHS SCHEDULE ONE-DAY-A-MONTH TO……………..
Work ON your business not IN your business.
Three questions need answers for you to succeed and grow:
Q1. What made us money this last month, two months, three months?
A1. Sales are easy. Sales that produce profit need your recognition and attention. If we see this trend continuing for the next month or so, next week go buy more. If this trend only applies to this part of the year, note it in the calendar and stock up before next year’s trend time begins.
Q2. What cost us money this last month?
A2. Start with the checkbook, followed by the credit card statement. Visit each expense item separately. Ask the question, “Is this a needed expense?” “Is this an expense I can do something about?” If you need it and can’t do anything about it, it is a fixed expense, move on. If this is an expense that you can reduce with the same end result or an expense you can match with better results ( increased income), then on Monday, do something about it.
You must do this one day each month for the first year, minimum, to help increase income and reduce (control) expenses. What does that kind of knowledge leave you? PROFIT now and increased PROFIT next year.
Q3. What did I learn/hear about that might be good to help increase revenue?
A3. Set up an “IDEA” folder. As each day progresses, you may come across an idea that seems to have promise. Capture the idea and supporting documentation, etc. inside your “IDEA” folder and visit the folder on this day. You will discard some ideas, decide to ‘try’ some and delegate some for research and revisiting at a later date.
At the end of your first year, this formula will help put you years ahead of others who let the wind blow them about. You will know what happened, not wonder what happened.
It is your responsibility to make decisions. You don’t make bad decisions, you just make more decisions. Every day, your first decision should be, “Who is in charge today?” The answer better be, “Me!”
TIPS 2+ are shared in the classroom, such as: “Too many dealers marry the business and divorce their family…..Learning to balance both makes each more successful than either one can be on its own when you………”