AT A DEALERSHIP, just like any business, there are two critical things required to survive:
1. turn a profit
2. generate cash
Yes, many other things are important, including customer experience, employee morale, safety, marketing, and branding, to name a few. However, you can have the best quality and the best customer service, but if the business cannot generate the cash to pay the bills and turn a profit, it will eventually fail.
In today’s multilocation equipment dealerships, the owner(s) may not be present in each store. Instead, many organizations
are counting on the frontline staff or mid-level managers to make decisions and “think like an owner.”
Many parts, service, sales, and branch managers have been promoted through the ranks. They are often dedicated and
talented people. They have strong technical, product, or sales skills but often lack the basic financial training to truly manage
the business. This is not their fault.
Promoting a seasoned technician because he’s able to troubleshoot complex machine issues over the phone or coach a younger technician on how to overhaul a transmission doesn’t mean this person is able to read and analyze a departmental financial statement. Most will require training and ongoing support to develop their business and financial skills.
Western Equipment Dealer Magazine Winter Issue 2018
By Kelly Mathison