The latest NADA report reveals the strongest part of dealerships.
When The NADA Annual Financial Profile Of New-Car Dealerships Report came out, it revealed several things, including the fact that the strongest part of dealerships remains the parts-and-service departments, with a total revenue of $97.18 billion dollars in 2015, up 5.9 percent from 2014.
In fact, Autonews reports that the average dealership posted service-and-parts sales of $5.9 million, up 4.9 percent. The average dealership posted net profit from service and parts of $363,308 dollars last year. The report says that was almost nine times the average net profit from the new vehicle department and five times the average of the used vehicle department.
With those numbers in mind, the report also says dealerships paid one of the highest salaries of all industries with the average weekly earnings for employees reaching $1,087. That translates to $56,524 dollars annually.
When discussing pay and hiring the right staff, NADA’s Chief Economist, Steven Szakaly told Autonews, “We are very much in a phase where talent is very, very valuable. We need to attract many, many more people into this industry in order to keep up with not only the work expansion that dealers have in terms of sales, but also service.”
And of course, attracting those people who are passion-driven, genuinely qualified and experienced means paying them what they’re worth. “At the end of the day (says Michael Roppo, Director of Fixed Ops with Withum, Smith and Brown) you have to have a best practice operations system that’s there to make sure that everybody’s able to make a decent living.”
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