A word about profits.
Making a profit is NOT a sin! Making a profit is not a CRIME. It is the reason we are in business!
Profit is the fuel that drives the engine of our economy. The automobile industry has one of the LOWEST profit margins in the retail sales marketplace! Furniture, electronic equipment, clothing, jewelry, books, household goods, and even FOOD routinely have markups from 50 to 500%! By comparison, a $3,000 gross profit on a $20,000 vehicle is only 15%. A substantial portion of THAT is absorbed in marketing, advertising, labor costs, commissions and dealership overhead. The GOVERNMENT tasks at least 6% of the 15% we make, which is often MORE than the profit the dealership earns. What you say. Read that again. The Government makes as much if not more on our sales and gross as the dealership.
All of you work very hard to sell a product or service to assist the consumer in solving their transportation needs and wants. We try and be as competitive in the market place in pricing and margin and we try to always out perform our peers with superior service. So never feel anything but pride in our gross profit margins because we have one of the lowest spreads in the retail industry. We operate on extremely low margins and therefore need to watch and monitor what we do with our inventories, expenses, capital and the profits we do generate. You should feel proud that we can make a profit based on these factors. You are amazing and can make a profit in this industry with low margins, high risk and one of the most competitive business environments period.
We all can do better, sell more, attract more. serve at a higher level by working together and rising together.
Be proud of your sales, margins, and gross profit because by doing so we can better serve those that spend their hard earned money with us. Make BIGGER things happen.
Love ya all,