Comments Off on In an Era of Shrinking Budgets, Dealers Should Not Overlook the Cost of Inefficiency
By Marilou C. Vroman, CPA, CFE
Published in: Professional Auto News
Under any economic conditions, successful dealers look to run their businesses as efficiently as possible. Now, facing serious financial pressures, efficiency has taken on new meaning, and many dealerships are searching for additional ways to reduce expenses and improve margins. While this strategy is necessary and even advised in some cases, too much cost reduction – and cuts in the wrong areas – can be as damaging as the overarching economic realities that we all face.
While a number of good dealers would like to exit the industry, the current market conditions are less than ideal. It may be at least two years before the dealership transactional market returns to acceptable levels.