CHICAGO – Rapid Recon Founder and CEO Dennis McGinn wrote Recon T2L, the Starting Line for Reversing Margin Compression for NADA ’18. This “how to” book explaining how to make vehicle reconditoning a profitable operation for the dealership sold out quickly. Another 1,000 copies has been printed and yours is now available at www.rapidrecon.com.
“As used car sales have grown as a percentage of dealership profitability in recent decades, it has become critically necessary to develop and apply performance metrics to reconditioning departments,” McGinn writes in the 211-pagebook’s Preface. “In the most basic terms, the speed at which you get cars through recon determines the profitability of your used car operation. Time to Line (T2L) is the tracking metric used to measure the time, in days, it takes a dealership to get a used car from acquisition to the frontline (both physically and virtually). A lower average T2L means decreased holding costs and increased turns of used car inventory.”
RECON T2L makes a strong case, backed by financial analysis and evidence from dealers, that dealers must take the time to evaluate, identify and maximize efficiencies within their reconditioning departments if their used car operations are to be more profitable. Rapid Recon’s product provides managers with real-time views into the status of each car as it moves through reconditioning, allowing for faster communication of issues as they arise, and providing a culture of accountability among employees.
Can a reconditioning workflow tool improve your profitability? Ask yourself these questions:
- Does your store know the status of each car, starting with transit/trade through recon and sold?
- Do you have a T2L process that reports verifiable metrics?
- Have you experienced margin compression?
- Do your fixed ops and used car managers see the problem with recon the same way?
- Do you have finger-pointing happening instead of accountability?
Most recon operations function in a reactive state, responding to the latest request by just trying to keep up with the most recent priority. Often this is management done through an Excel spreadsheet on someone’s desktop or a whiteboard on the wall. The spreadsheet is updated when time allows — or often, not at all. Being reactive is very inefficient for everyone involved. There are many dealers quoted throughout this book who have transitioned from a reactive to a proactive recon culture, using the tools built into Rapid Recon. The efficiencies gained have converted into process improvements, faster T2L averages and reductions in holding costs, leading to increased gross profit per car. Click here for a demo and free copy.