5 WAYS TO FIND HIDDEN CASH IN SALES

Closing the deal is only the first step. Make sure to keep more of what you close. Here are 5 ideas how:

1. In financing accuracy is king. When interviewing the customer ask probing questions to get exact information. Inaccuracies dramatically affect the lenders’ risk evaluations.

2. Build accurate pay plans. Include all costs of sales and track over allowances. Mismanaged pay plans could cost your dealership $60,000 a year.

3. Trade lien payoffs payable must be watched carefully. Any payoff deadline passed results in additional interest expense which must be paid in order to obtain the title to the unit. That missed deadline for payoff may trigger a notice to the customer.

4. Don’t ignore those flooring payoffs. It is the easiest float you ever had. It is also the most dangerous. SAU, OT, call it what you may, it is the first sign to your flooring company that you are in trouble.

5. Stop the flooring interest. Move from free flooring to your best source (sometimes local), and do it on the day the free flooring stops

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