key performance indicators (kpi) for parts managers – de ... · pdf filekey performance...

Key Performance Indicators (KPI) for Parts Managers – De-Mystifying the Financial Statement!

With

Sebastiano Banchitta, CPA & Rob Campbell, Analyst The Mironov Group, LLC

Moderated by Mike Bowers, Executive Editor

DealersEdge

Sebastiano Banchitta, CPA - The Mironov Group, LLC Sebastiano Banchitta is a Senior Accountant with the accounting and consulting firm The Mironov Group, LLC. His responsibilities include Compilation and Review of financial statements as well as preparation of business and individual income tax returns. He also handles evaluating and communicating to upper dealership management the financial position of their organizations as well as suggestions where improvement is necessary. Sebastiano has worked with many franchised dealerships in the eastern United States. In addition, he has over eight years of experience working in every accounting office position along with special projects for various controllers and CFOs. Sebastiano is a member of the American Institute of Certified Public Accountants (AICPA), New York State Society of Certified Public Accountants (NYSSCPA), and was past Vice Chair of the Accounting and Review Services Committee of the NYSSCPA.

Rob Campbell, Analyst - The Mironov Group, LLC Rob Campbell serves as one of the resident dealer analysts and consultants with The Mironov Group, LLC, working with dealerships nationally to improve their results from fixed operations as well as helping through difficult warranty audit concerns and negotiations. He has conducted training sessions and worked as a consultant to many dealerships around the country. A frequent and popular speaker at industry events, including five NADA conventions, he is a true professional and a great communicator. In addition to his consulting background, Rob has spent the past fifteen years writing extensively concerning fixed operations management and warranty administration issues. Rob has 17 books or manuals on Fixed Operations management under his belt. He is also an associate of the Association of Certified Fraud Examiners.

2

WebinarSeries

KeyPerformanceIndicators(KPI)forPartsManagersDe‐MystifyingtheFinancialStatement!

Thursday,November14th,2013

Presentedby

SebastianoBanchitta,CPAandRobCampbell,Analyst

TheMironovGroup,LLCCPAsandAutomotiveConsultants

Welcome and Agenda! The Key Performance Measurements in Parts, how to calculate them, what they mean and how to improve them.

Financial Performance

Inventory Performance ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

11NOV13 10:46 HOT DOG HONDA MOTORS HDH-I(RGPS) Gross Profit by Source (01OCT13-31OCT13) Page No: 1

<---------- 31OCT13 ----------> <------- Period to Date Totals --------> Total Total Gross Gross Total Total Gross GrossSource Sales Cost Profit Profit% Sales Cost Profit Profit%------ ------- ------- ------- ------- ---------- ---------- ---------- ------- 500 0.00 N/A 119.11 22.49 0.00 0.00 153.69 34.58 600 77.89 51.48 5,441.86 41.68 160.54 82.65 9,332.28 3,890.42 601 2,025.75 37.93 24,688.62 41.07 3,264.15 1,238.40 41,900.93 17,212.31 602 272.33 36.15 15,237.96 42.67 426.53 154.20 26,580.36 11,342.40 603 206.93 35.49 6,883.82 48.27 320.82 113.89 13,307.87 6,424.05 604 97.24 51.27 3,627.59 57.38 199.58 102.34 8,513.31 4,885.72 605 652.13 51.13 23,642.61 51.42 1,334.55 682.42 48,673.35 25,030.74 800 65.00 16.66 15,135.00 18.42 78.00 13.00 18,554.00 3,419.00 900 896.20 61.16 17,226.15 52.86 2,307.63 1,411.43 36,544.54 19,318.39 999 0.00 N/A 1.18 99.33 0.00 0.00 177.00 175.82------ ------- ------- ------- ------- ---------- ---------- ---------- -------Totals 4,293.47 46.94 112,003.90 45.02 8,091.80 3,798.33 203,737.33 91,733.43

Year‐to‐date sales of $1,737,024 with a gross of $733,374 Our Profile averages –

Honda store CP – 42% Express – 34% Wty – 28% Internal – 35% Counter – 35% Wholesale Collision – 17% Wh.sale Mech – 22% Tires – 15% GOG – 30%

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Net‐to‐Sales $187,742 ÷ $1,737,024 = 10.8% Net‐to‐Gross $187,742 ÷ $733,374 = 25.6% ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Cost of sale and variations

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Matrix and Mark‐ups Selling Price = Cost ÷ (1 – Desired Gross Profit)

$100 part, 35% gross $100 ÷ (1 – .35) $100 ÷ .65 = $153.85 $53.85 ÷ $153.85 = 35%

• Matrix should intersect with mark‐up and unit/volume sales

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Personnel Expenses

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Staffing Levels

Gross per departmental employee

Gross per counterperson

Piece movement ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Semi‐Fixed/Operating Expense

______________________________________________________________________________ ______________________________________________________________________________

Getting back to Net – Gross ‐ Expenses (personnel, semi‐fixed, fixed) = Net – 100% ‐ (35% + 33% + 12%) = 20%

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Inventory measurements Gross Turn – Ratio of sales to inventory

Sales (at cost) for 12 months ÷ Inventory … Or days supply 365 (days) ÷ Turns True Turn – Ratio of purchases to inventory (“stocked inventory turns”)

Stock Order Purchases (at cost) for 12 months ÷ Inventory ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

NS parts and their impact NS Inventory $ ÷ Total Inventory $ NS Parts Sales Efficiency (Month’s NS Sales ÷ Month’s NS Receipts) x 100 ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Inventory Age Current _______ Technically Obsolete _______ Obsolete _______ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

Level of Service The R&R definition

YTD Total Sales (at Cost) ‐ YTD Emergency, Orders, Lost(non‐stock) ÷

YTD Total Sales (at Cost) + YTD Lost Sales The ADP definition (Sales Closing Ratio)

Sales Closing Ratio = (Net Sales ÷ Total Demand) x 100 Total Demand = Net Sales + Lost Sales

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ THANKS FOR LISTENING!! You can reach me at anytime [email protected]

15OCT2013 10:34:13 CAMPBELL CADILLAS OF NEW JERSEY CCN-I302SEP013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 1

Grand Total

NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT ------------ ------- ------------ ------- -------------- -------Inventory Balance 21,275 13,044 255,764.88 Active Parts 1,604 7.53 7,188 55.10 124,121.31 48.52 NS Parts 17,337 81.49 1,913 14.66 43,440.79 16.98 MO Parts 1 0.00 15 0.11 AP Parts 1,938 9.10 3,541 27.14 78,752.96 30.79 DP Parts 167 0.78 387 2.96 9,449.82 3.69 SP Parts DEL Parts 228 1.07

Parts With No Cost 72 0.33 25 0.19

Parts With Negative On-Hand 19 0.08 145 -1,330.14

Core/Exchange 82 0.38 120 0.91 10,952.00

Memos On File 2,045

Parts Added 657 3.08 95 0.72 3,174.59 1.24 Active Parts 8 1.21 13 13.68 828.08 26.08 NS Parts 649 98.78 82 86.31 2,346.51 73.91 MO Parts AP Parts DP Parts SP Parts

Parts & Memos Deleted 149

Inventory Movement - Sales 0 to 3 Months 4,667 21.93 7,661 58.73 120,492.68 47.11 4 to 6 Months 2,143 10.07 1,046 8.01 24,952.60 9.75 7 to 12 Months 3,442 16.17 1,342 10.28 34,235.74 13.38 Over 12 Months 8,543 40.15 2,502 19.18 63,839.75 24.96 New Parts No Sales 2,480 11.65 493 3.77 12,244.11 4.78

Inventory Movement - Receipts 0 to 3 Months 4,649 21.85 6,879 52.73 122,957.64 48.07 4 to 6 Months 2,226 10.46 1,274 9.76 34,257.98 13.39 7 to 12 Months 3,560 16.73 1,948 14.93 35,970.49 14.06 Over 12 Months 8,478 39.84 2,868 21.98 62,025.59 24.25 New Parts No Receipts 2,362 11.10 75 0.57 553.18 0.21

Outstanding Orders 61 0.28 1,166 7,853.77 Stockorders 41 67.21 1,138 97.59 5,578.85 71.03 Supplemental Orders Customer Orders 12 19.67 15 1.28 1,613.65 20.54 Backorders 10 16.39 13 1.11 661.27 8.41 Stockorder Backorders 2 3.27 5 0.42 249.85 3.18 Supplemntl Backorders Customer Backorders 8 13.11 8 0.68 411.42 5.23

Outstanding Forced Orders

15OCT2013 10:34:13 CAMPBELL CADILLACS OF NEW JERSEY CCN-I30SEP2013 Month End SEP 2013 MONTHLY SUMMARY REPORT Page 2

Grand Total

NBR OF PARTS PERCENT PARTS PIECES PERCENT PARTS COST PERCENT TRANS COUNT ------------ ------- ------------ ------- -------------- ------- -----------Gross Sales 1,865 8.76 7,571 198,025.80 4,422 Regular 1,691 90.67 6,862 90.63 176,242.25 88.99 4,031 No History Drop Ship Wholesale 226 12.11 703 9.28 21,044.35 10.62 385 Wholesale No History Wholesale Drop Ship Warranty 6 0.32 6 0.07 739.20 0.37 6 Warranty No History Warranty Drop Ship

Lost Sales 75 0.35 122 7,695.22 77

Return Sales 356 1.67 887 28,930.86 432 Regular 308 86.51 700 78.91 25,910.34 89.55 371 No History Defective Wholesale 49 13.76 187 21.08 3,020.52 10.44 61 Wholesale No History Wholesale Defective Warranty Warranty No History Warranty Defective

Receipts 1,565 7.35 7,068 181,059.57 2,076 Stockorders 398 25.43 1,322 18.70 28,720.40 15.86 584 Supplemental Orders Customer Orders 847 54.12 1,236 17.48 76,730.03 42.37 883 Emergency Purchases 37 2.36 54 0.76 2,118.54 1.17 38 Other Receipts 475 30.35 4,456 63.04 73,490.60 40.58 571

Overages

Net Adjustments 151 0.70 420 -9,694.26 170 Plus 21 13.90 36 8.57 1,310.67 30 Minus 130 86.09 384 91.42 -11,004.93 140

Factory Returns

Net Appreciation 11 0.05 107 0.82 -400.08 36 Positive 1 9.09 51 47.66 4.80 10 Negative 10 90.90 56 52.33 -404.88 26

Parts Updated With Cost 2 0.00 2Parts With Comments 345

Misc & Sublet Items Gross Sales Lost Sales Return Sales 1 0.01 1Parts Not On File, But Sold Gross Sales 3 368.01 4 Lost Sales Return Sales 2 2

15OCT2013 10:34:13 CAMPBELL CADILLACS OF NEW JERSEY CCN-I30JSEP2013 Month End SEP2013 ANNUAL ACTIVITY & BENCHMARK TREND REPORT Page 1

Grand Total

YEAR-TO-DATE YEAR-TO-DATE LAST 12 MONTHS LAST 12 MONTHS SEPTEMBER 2013 TOTAL AVERAGE TOTAL AVERAGE -------------- -------------- -------------- -------------- --------------Number of Parts 21,275 120,086 20,014 221,481 18,457Parts Pieces 13,044 79,009 13,168 144,637 12,053Parts Cost 255,764.88 1,505,598.53 250,933.09 3,033,628.97 252,802.41Parts With Negative OH -1,330.14 -9,954.79 -1,659.13 -22,140.35 -1,845.03Core/Exchange 10,952.00 67,534.00 11,255.67 148,258.00 12,354.83

Gross Sales 198,025.80 1,221,930.85 203,655.14 2,504,325.99 208,693.83Net Sales 169,094.94 1,037,093.53 172,848.92 2,066,815.49 172,234.62Lost Sales 7,695.22 63,489.56 10,581.59 120,278.31 10,023.19Outstanding Orders 7,853.77 83,530.14 13,921.69 171,809.70 14,317.48Total Receipts 181,059.57 1,118,729.35 186,454.89 2,251,885.83 187,657.15 Customer Orders 76,730.03 460,157.21 76,692.87 894,308.12 74,525.68 Emergency Purchases 2,118.54 5,705.18 950.86 10,526.63 877.22Net Adjustments -9,694.26 -87,264.22 -14,544.04 -207,865.09 -17,322.09Net Appreciation -400.08 361.18 60.20 1,436.16 119.68NS Parts Number of Parts 17,337 100,326 16,721 182,260 15,188 Parts Pieces 1,913 10,566 1,761 18,739 1,562 Parts Cost 43,440.79 270,609.43 45,101.57 537,053.40 44,754.45 Gross Sales 122,572.23 702,709.36 117,118.23 1,412,838.87 117,736.57 Net Sales 104,309.41 608,450.12 101,408.35 1,166,127.42 97,177.29 Lost Sales 5,763.47 54,704.89 9,117.48 99,909.95 8,325.83 Outstanding Orders 1,425.76 30,105.41 5,017.57 69,514.85 5,792.90 Receipts 115,151.22 663,473.06 110,578.84 1,310,648.78 109,220.73

Inventory Movement - Sales 0 to 3 Months 120,492.68 691,386.90 115,231.15 1,425,073.72 118,756.14 4 to 6 Months 24,952.60 181,854.29 30,309.05 377,496.62 31,458.05 7 to 12 Months 34,235.74 217,102.02 36,183.67 540,293.27 45,024.44 Over 12 Months 63,839.75 317,564.76 52,927.46 456,685.08 38,057.09 New Parts No Sales 12,244.11 97,690.56 16,281.76 234,080.28 19,506.69Non-Productive Parts Excess Stock MNS < 12 71,214.05 428,354.84 71,392.47 869,005.03 72,417.09 Stock MNS > 11 51,688.90 279,179.68 46,529.95 456,539.26 38,044.94 NS Parts Not Sold 37,840.68 227,539.74 37,923.29 433,168.60 36,097.38New Obsolescence Stock 9 Months 2,398.41 25,143.46 4,190.58 75,462.11 6,288.51 NS Parts 2 Months 2,097.29 21,595.73 3,599.29 49,998.38 4,166.53Early Phase In NS Parts With YRSL > 2 1,221.51 10,256.10 1,709.35 27,887.70 2,323.98

True Turn 4.23 4.55 4.60Purchase to Stock Ratio By Number of Parts 43.51 43.31 43.59 By Piece 81.74 81.98 82.12 By Cost 56.45 58.35 59.81Sales Closing Ratio By Number of Parts 95.26 93.83 93.81 By Piece 98.20 98.07 98.16 By Cost 95.64 94.23 94.50Demand Filled from Stock Ratio By Number of Parts 39.45 38.19 38.29 By Piece 79.25 78.11 79.25 By Cost 51.04 51.90 53.12NS Parts Sales Efficiency 106.44 105.91 107.79

AUTO/MATE, INC. COMPANY: CAMPBELL'S CRAZY CHRYSLERS RUN DATE: 10/17/2013

EOMCLOSE PARTS INVENTORY / POS RUN TIME: 11:09

PAGE 1 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUN_DMC

ANALYSIS FOR MONTH ENDING 10/17/2013 VENDOR = chry

No. of % VALUE % ON-HAND R E C E I P T S

Parts Piece STOCKS SPECIALS

Count PT Ct. Pc. Ct. Value PT Ct. Pc. Ct. Value

INVENTORY ------------------------- ------------------------

ACTIVE PARTS 1304 19.1 112135.40 47.3 6570

AUTO PHASE-OUT PARTS 3025 44.3 94221.62 39.7 4641

DEALER PHASE-OUT PARTS 0 0.00 0

MANUAL ORDER PARTS 5 .1 -93.50 -1

NON-STOCK PARTS 2495 36.5 30827.77 13.0 1691

TOTAL INVENTORY 6829 100.0 237091.29 100.0 12901

CLEAN CORES VALUE 49 5215.03 69

INVENTORY WITH CLEAN CORES 0 242306.32 0

SALES (AT COST)

ACTIVE PARTS 341 65.3 32157.39 64.1 2638

AUTO PHASE-OUT PARTS 30 5.7 1194.00 2.4 51

DEALER PHASE-OUT PARTS 0 0.00 0

MANUAL ORDER PARTS 0 0.00 0

NON-STOCK PARTS 151 28.9 16851.91 33.6 331

TOTAL SALES (AT COST) 522 100.0 50203.30 100.0 3020

TOTAL LOST SALES 2 293.50 2

TOTAL EMERGENCY PURCHASES 0 0.00 0

LEVEL OF SERVICE 99.6 99.4

INVENTORY BY SOURCE

SRC 001 2 21.50 10 1 10 9.00 0 0 0.00

SRC 100 CHRYSLER STANDARD 5263 77.1 166309.84 70.1 7575 256 847 20802.80 220 377 22316.25

SRC 200 AFTERMARKET 13 .2 348.84 .1 178 0 0 0.00 0 0 0.00

SRC 500 BULK OIL 3 4979.49 2.1 2090 0 0 0.00 0 0 0.00

SRC 600 TIRES 109 1.6 19562.00 8.3 128 3 9 1181.25 4 8 972.50

SRC 700 TIRE TAX 2 0.46 46 0 0 0.00 0 0 0.00

SRC 800 STORE MERCHANDISE/ 1 28.10 1 0 0 0.00 0 0 0.00

SRC 888 CHRYSLER PARTS TO 1416 20.7 38330.05 16.2 2634 7 33 149.45 7 16 194.00

SRC 900 SUPPLIES 20 .3 7511.01 3.2 241 0 0 0.00 0 0 0.00

SALES (AT COST) BY SOURCE

SRC 100 CHRYSLER STANDARD 481 91.1 38905.95 76.1 1261

SRC 200 AFTERMARKET 3 .6 89.27 .2 93

SRC 500 BULK OIL 3 .6 3159.01 6.2 1441

SRC 600 TIRES 12 2.3 5977.50 11.7 43

SRC 700 TIRE TAX 1 .2 0.46 46

SRC 888 CHRYSLER PARTS TO 17 3.2 332.70 .7 42

SRC 900 SUPPLIES 11 2.1 2674.32 5.2 87

SALES MOVEMENT

Month To Date 528 7.7 34616.63 14.6 4010

NO-SALE 1 TO 3 MONTHS 1954 28.6 67719.74 28.6 2186

NO-SALE 4 TO 6 MONTHS 1124 16.5 28167.95 11.9 1337

NO-SALE 7 TO 9 MONTHS 823 12.1 22221.25 9.4 1076

NO-SALE 10 TO 12 MONTHS 678 9.9 15190.99 6.4 427

NO-SALE OVER 12 MONTHS 1722 25.2 69174.73 29.2 3865

STATUS CHANGES & PARTS DROPPED

PARTS PHASED IN 0 0.00 0

PARTS PHASED OUT 216 5881.25 101

PARTS DROPPED 180 0.00 0



PAGE 2 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUN_DMC

ANALYSIS FOR MONTH ENDING 10/17/2013 VENDOR = chry

DataPoint Description

DP1 RO Off the Shelf Fill % 97.2 %

DP2 Total Idle Capital % 31.3 %

DP3 Negative On Hand 12290.65

DP4 Parts with no Bin .00

DP5 Parts with no Cost 8

DP6 Monthly Closing Inventory Value 237091.29

DP7 Lost Sales 293.50

DP8 True Turns(((R-S)*12/Y)*(V/100) 1.2394

DSP Totals

Line Description

A Number of Stocks Status Parts on ROs 1003

B Number of Stocks Status Filled OSF 975

C RO Off the Shelf Fill % (B/A)*100 97.2 %

D Value of Stocking Parts with MNS 6-11 15626.10

E Value of Stocking Parts with MNS 12+ 279.10

F Value of Non-Stock Parts with MNS 3-5 14475.90

G Value of Non-Stock Parts with MNS 6-8 11172.45

H Value of Non-Stock Parts with MNS 9-11 17036.30

I Value of Non-Stock Parts with MNS 12+ 73964.77

J Total Idle Capital %((E+I)/Y)*100 31.3 %

K Number of Parts with Negative O.H. 120

L Value of Parts with Negative O.H. 12290.65

M Number of Parts with No Bin

N Value of Parts with No Bin .00

O Number of Parts with No Cost 8

Month to Date Totals (Current through

P Number of Parts/Trans with Lost Sales 2

Q Value of Lost Sales 293.50

Monthly Totals for (Month) Closed on

R Monthly Cost of Sales 50203.30

S Monthly Returns 255.30

T Monthly Stock Order Receipts 22142.50

U Monthly Receipts 45625.25

V Stock Order Utilization (T/U)*100 48.5 %

W Month Close Inventory - Stock Parts 112135.40

X Month Close Inventory- Non-Stock Parts 124955.89

Y Month Close Inventory - All Parts 237091.29



PAGE 3 INVENTORY MANAGEMENT REPORT - RPT ONLY RUN BY: RUNDMC

ANALYSIS FOR MONTH ENDING 10/17/2013

SALES BY TYPE SALES COST W-COMP PROFIT

1 RETAIL 5872.65 3836.35 0.00 2036.30

2 WHOLESALE 20 2433.72 1877.65 11.34 567.41

3 WHOLESALE 30 2618.43 2249.80 4.34 372.97

4 INTERNAL 387.05 301.25 0.00 85.80

5 EMPLOYEE 1003.44 915.85 0.00 87.59

6 0.00 0.00 0.00 0.00

7 0.00 0.00 0.00 0.00

8 0.00 0.00 0.00 0.00

TOTAL 12315.29 9180.90 15.68 3150.07

9 RO CUST PAY 29183.52 19096.11 0.00 10087.41

10 RO WARRANTY 11419.14 7023.24 0.00 4395.90

11 RO INTERNAL 14916.16 12203.73 0.00 2712.43

12 RO SVC CONT 3040.13 1905.88 0.00 1134.25

13 RO EMPLOYEE 116.18 99.98 0.00 16.20

14 RO MENU 0.00 0.00 0.00 0.00

15 RO COST 2537.74 2478.47 0.00 59.27

TOTAL 61212.87 42807.41 0.00 18405.46

10/19/2013 MONTHLY ANALYSIS 2213 11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 1 SUMMARY COST OF SALES PARTS PARTS% PIECES MTD MTD% YTD --------------------------------------- ------- ------ ------- -------------- ----- -------------- NORMAL STOCK PARTS 8865 70.9% 14751 436514.67 38.6% 4558002.68 AUTOMATIC PHASEOUT (AP) PARTS 416 3.3% 585 37693.59 3.3% 359605.03 DEALER PHASEOUT (DP) PARTS 1 0.0% 2 122.00 0.0% 247.95 MANUAL ORDER (MO) PARTS 450 3.6% 2297 8577.71 0.7% 65917.88 NON-STOCK (NS) PARTS 2696 21.5% 3485 249525.65 22.0% 2813119.21 NO PHASEOUT (NP) PARTS 0 0.0% 0 0.00 0.0% 0.00 OBSOLETE (OB) PARTS 0 0.0% 0 0.00 0.0% 0.00 REPLACED BY HOLD (RBH) PARTS 31 0.2% 35 1250.79 0.1% 29328.96 SOLD NOT STOCKED 38 0.5% 43 396496.14 35.3% 3320395.56 ------------------------------- ------- ------ ------- -------------- ----- -------------- TOTAL COST OF SALES 12497 100.0% 21198 1130180.55 100.0% 11146617.27 LOST SALES (MEMO) 15 17 795.05 30597.14 CREDIT/RETURNS (MEMO) 604 811 33395.82 337453.39 UNUSUAL SALES (MEMO) 0 0 0.00 0.00 INVESTMENT PARTS PARTS% PIECES EXT VALUE VALUE% --------------------------------------- ------- ------ ------- -------------- ------ NORMAL STOCK PARTS 9763 14.2% 12124 354866.16 38.1% AUTOMATIC PHASEOUT (AP) PARTS 4641 6.7% 13933 332033.25 35.7% DEALER PHASEOUT (DP) PARTS 12 0.0% 31 909.18 0.0% MANUAL ORDER (MO) PARTS 56 0.0% 1046 5735.88 0.6% NON-STOCK (NS) PARTS 54003 78.7% 4209 217230.56 23.3% NO PHASEOUT (NP) PARTS 0 0.0% 0 0.00 0.0% OBSOLETE (OB) PARTS 0 0.0% 0 0.00 0.0% REPLACED BY HOLD (RBH) PARTS 132 0.4% 601 18391.85 2.3% ------------------------------- ------- ------ ------- -------------- ------ TOTAL INVESTMENT 68607 100.0% 31944 929166.88 100.0% DIRTY CORE INVENTORY 99 390 26766.00 NEW CORE INVENTORY 40 59 9944.00 ACCUM ACCUM ACTIVITY PARTS PARTS% PARTS% EXT VALUE VALUE% VALUE% --------------------------------------- ------- ------ ------ -------------- ------ ------ CURRENT 7001 10.2% 10.2% 175976.63 18.9 18.9% 1-3 MONTHS 13748 20.0% 30.2% 257141.92 27.6 46.5% 4-6 MONTHS 8820 12.8% 43.0% 100812.99 10.8 57.3% 7-9 MONTHS 7284 10.6% 53.6% 91041.13 9.7 67.0% 10-12 MONTHS 6416 9.3% 62.9% 60420.70 6.5 73.5% 13-24 MONTHS 20441 29.7% 92.6% 149073.03 16.0 89.5% 25 MONTHS OR MORE 4897 7.4% 100.0% 94700.48 10.5 100.0%

10/19/2013 MONTHLY ANALYSIS 2213 11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 2 SUMMARY OUTSTANDING ORDERS PARTS PARTS% PIECES EXT VALUE VALUE% --------------------------------------- ------- ------ ------- -------------- ------ STOCK ORDER 364 42.9% 2114 52104.25 45.2% STOCK ORDER - BACKORDER 4 0.4% 4 351.46 0.3% STOCK ORDER - CROSS SHIP 4 0.4% 12 159.53 0.1% SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0% SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0% SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% CUSTOMER ORDER 398 46.9% 565 34341.33 29.8% CUSTOMER ORDER - BACKORDER 61 7.2% 315 27434.88 23.8% CUSTOMER ORDER - CROSS SHIP 16 1.8% 19 820.05 0.7% EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0% OTHER ORDERS 0 0.4% 0 0.00 0.1% ------------------------------- ------- ------ ------- -------------- ------ TOTAL OUTSTANDING ORDERS 847 100.0% 3029 115211.50 100.0% PROCESSED ORDERS PARTS PARTS% PIECES MTD MTD% YTD --------------------------------------- ------- ------ ------- -------------- ----- -------------- STOCK ORDER 1260 16.4% 8463 152915.67 22.7% 2043428.27 STOCK ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 301.45 STOCK ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% -44.13 SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0% 0.00 SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 0.00 SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% 0.00 CUSTOMER ORDER 6399 83.5% 8907 519943.19 77.2% 5358869.47 CUSTOMER ORDER - BACKORDER 0 0.0% 0 0.00 0.0% -2939.93 CUSTOMER ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% -3666.24 EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0% 0.00 OTHER ORDERS 0 0.1% 0 0.00 0.1% 0.00 ------------------------------- ------- ------ ------- -------------- ----- -------------- TOTAL PROCESSED ORDERS 7659 100.0% 17370 672858.86 100.0% 7395948.89 FORCED ORDERS 0 0 0.00 35512.38 RECEIPTS PARTS PARTS% PIECES MTD MTD% YTD --------------------------------------- ------- ------ ------- -------------- ----- -------------- STOCK ORDER 1856 21.8% 10401 146808.48 13.7% 2166001.70 STOCK ORDER - BACKORDER 10 0.1% 39 1292.32 0.1% 9750.43 STOCK ORDER - CROSS SHIP 11 0.1% 13 71.76 0.0% 5279.92 SUPPLEMENTAL ORDER 0 0.0% 0 0.00 0.0% 0.00 SUPPLEMENTAL ORDER - BACKORDER 0 0.0% 0 0.00 0.0% 0.00 SUPPLEMENTAL ORDER - CROSS SHIP 0 0.0% 0 0.00 0.0% 0.00 CUSTOMER ORDER 5997 70.6% 8196 468393.85 43.7% 4841455.04 CUSTOMER ORDER - BACKORDER 412 4.8% 547 38226.28 3.5% 333404.25 CUSTOMER ORDER - CROSS SHIP 61 0.7% 69 7317.98 0.6% 120745.70 EMERGENCY PURCHASES 0 0.0% 0 0.00 0.0% 240.84 OTHER ORDERS 139 1.9% 159 408522.75 38.4% 3577041.95 ------------------------------- ------- ------ ------- -------------- ----- -------------- TOTAL RECEIPTS 8486 100.0% 19424 1070633.42 100.0% 11053919.83 PURCHASES DISCOUNT 27 179 742.84 2535.94

10/19/2013 MONTHLY ANALYSIS 2213 11:53:16 STORE 01 BRANCH 01 MIRONOV MOTORS MM/YY 9/13 PAGE 3 SUMMARY ADDS/DELETES/ADJUSTS PARTS PIECES MTD YTD --------------------------------------- ------- ------- -------------- -------------- ADDED PARTS 1952 8 1135.53 1430.66 DELETED PARTS 1429 0 0.00 -139.47 MINUS ADJUSTMENTS 41 -154 -2282.66 -37626.26 PLUS ADJUSTMENTS 22 114 1759.86 30023.73 PHYSICAL INVENTORY ADJUSTMENTS 0 0 0.00 0.00 RETURNED PARTS 0 0 0.00 -36092.13 RETURNED CORE PARTS 0 0 0.00 0.00 NEGATIVE BALANCE ADJUSTMENTS 661 114 1422.60 5812.16 COST PRICE ADJUSTMENTS 26 22 -81.50 -2275.82 INVENTORY REALLOCATION 0 0 0.00 0.00 ------------------------------- ------- ------- -------------- -------------- TOTAL ADDS/DELETES/ADJUSTS 4131 104 1953.83 -38867.13 APPRECIATION/FIRST PRICING PARTS PIECES MTD YTD --------------------------------------- ------- ------- -------------- -------------- APPRECIATION - FACTORY MASTER UPDATE 7866 869 449.17 15018.96 APPRECIATION - MANUAL UPDATE 11 71 -1953.04 -1871.37 ------------------------------- ------- ------- -------------- -------------- TOTAL APPRECIATION 7877 940 -1503.87 13147.59 FIRST PRICING - FACTORY MASTER UPDATE 2 2 90.70 90.70 FIRST PRICING - MANUAL UPDATE 1 0 0.00 415.34 ------------------------------- ------- ------- -------------- -------------- TOTAL FIRST PRICING 3 2 90.70 506.04 ------------------------------- ------- ------- -------------- -------------- TOTAL APPRECIATION/FIRST PRICING 7880 942 -1413.17 13653.63 OPENING/CLOSING SUMMARY PARTS PIECES MTD YTD --------------------------------------- ------- ------- -------------- -------------- OPENING INVENTORY 68353 33636 987430.51 1042877.58 CLOSING INVENTORY 68607 31944 929166.88 929166.88 PERCENT OF CHANGE 0.4% -4.9% -5.8% -10.8% MISCELLANEOUS PARTS PIECES EXT VALUE --------------------------------------- ------- ------- -------------- OUT OF STOCK 58652 0 0.00 NO COST 81 2139 0.00 NO FACTORY RECORD 9240 3724 11022.23 NO SERVICE 285 132 4814.43 MINUS ON HAND 318 -969 -29372.64 PHASED IN 626 270 13924.17 CONVERTED TO AUTOMATIC PHASEOUT (AP) 1779 635 34739.33 BUSINESS RATIOS --------------------------------------- ------ LEVEL OF SERVICE 99.7% STOCK ORDER PERFORMANCE 18.3% GROSS TURNOVER RATE 14.6 TRUE TURNOVER RATE 2.9

NEW JERSEY NEW YORK PENNSYLVANIA FLORIDA800.572.7101 MironovGroup.com

Domestic Import Highline Domestic Import HighlineSales ‐ Merchandising and Staffing Guidelines Dealer Dealer Dealer Sales ‐ Merchandising & Staffing Guidelines Dealer Dealer Dealer

New Vehicle Used VehicleNew Vehicle Supply in days 109.3 59.1 57.7 Used Vehicle supply (in days) 45.8 53.7 52.0 Number of units older than 90 days 37.5 28.3 26.7 Number of units older than 90 days 18.5 25.0 20.0 Units per salesperson ( New) per month 10.8 10.4 10.3 Units per salesperson ( N&U) per month 14.2 12.5 16.4 Gross Cars ‐ before F&I 1,100$ 1,363$ 2,680$ Gross Cars ‐ Before F&I 1,526$ 1,962$ 2,249$ Gross Trucks ‐ before F&I 1,238$ 1,363$ 2,722$ Gross Trucks ‐ before F&I 1,814$ 1,755$ 2,057$ Sales Ratio: new to used 1.6:1 1:1.7 1:2.1

Gross Productivity Gross ProductivityNew Vehicle Used Vehicle

Gross profit as a % of sales 5.6% 7.1% 7.6% Gross profit as a % of sales 9.9% 10.9% 7.2%Net profit as a % of sales 0.3% 1.7% 1.9% Net profit as a % of sales 2.6% 3.3% 2.1%

F&I penetration Rate% F&I Penetration Rate %Finance contract (exc retail lease) 68.6% 72.9% 60.7% Finance Income (excl retail lease) 53.4% 51.7% 58.1%Finance contract (inc retail lease) 72.9% 69.1% 72.5% Insurance 24.5% 21.1% 13.4%Insurance 23.6% 24.6% 8.0% Extended Service 43.1% 40.6% 30.6%Extended Service 50.8% 44.6% 16.2% Finance Gross per financed vehicle 626$ 631$ 652$ Finance Gross per financed veh. 697$ 530$ 729$ Insurance Gross per insured vehicle 406$ 333$ 410$ Insurance Gross per insured veh 477$ 330$ 399$ Ext Service Gross per contract 674$ 901$ 780$ Ext Service Gross per contract 821$ 715$ 692$

Expense Control Structure Guidelines Expense Control Structure GuidelinesNew Vehicle Used Vehicle

Total expense as a % of vehicle G/P 93.4% 89.0% 88.1% Total Expense as a % of Total G/P 92.3% 84.3% 83.1%

Compensation as a % of veh GP Compensation as a % of veh GPSalesperson 24.1% 19.8% 17.7% Salesperson 25.1% 20.1% 24.0%Supervision 21.5% 15.9% 17.0% Supervision 17.9% 14.7% 14.0%F&I comp as % of F&I income 23.0% 27.5% 22.1% F&I comp as % of F&I income 22.5% 26.6% 22.6%Personnel Exp as a % of G/P 42.3% 44.4% 39.9% Personel Exp as a % of G/P 38.0% 35.0% 42.2%Advertising as a % of Veh G/P 19.6% 15.4% 11.4% Advertising as a % of Veh G/P 12.7% 11.6% 15.6%Advertising per retail unit sold 321$ 277$ 309$ Advertising per retail unit sold 280$ 262$ 327$ Floor plan int as a % of Veh G/P ‐7.3% ‐6.9% ‐6.4% Floor plan int as a % of Veh G/P 1.4% 2.0% 1.2%

Reconditioning ‐ Cars 561$ 682$ 836$ Reconditioning ‐ Trucks 656$ 710$ 725$

Performance Measures Performance MeasuresKey Indicator Ratios Key Indicator Ratios

Current Ratio 1.11 1.51 1.44 Return on Equity (ROE) 30.9% 38.6% 36.0%Debt to Equity Ratio 3.10 1.08 2.74 Return on Assets (ROA) 9.0% 11.8% 10.3%

2012 Automotive Industry Guidelines

NEW JERSEY NEW YORK PENNSYLVANIA FLORIDA800.572.7101 MironovGroup.com

Domestic Import Highline Domestic Import HighlineSales ‐ Merchandising and Staffing Dealer Dealer Dealer Sales ‐ Merchandising and Staffing Guidelines Dealer Dealer Dealer

Service Dept. Parts Dept.Flat Hrs/RO 1.5 1.8 1.9 Level of Service 87.4% 90.7% 89.7%Technician efficiency 89.7% 98.8% 97.4% Stock Order Performance 82.4% 91.4% 88.7%RO's/Day/Svc Advisor ‐ Cust Pay, Warr, Int 14.0 15.1 14.9 Parts $ sold per Labor $ soldTechnicians per Service Advisor 4.3 4.1 4.3 Cust Repair 1.0$ 0.8$ 0.8$ Labor Gross per Tech (per month) 8,952$ 11,683$ 14,282$ Warranty 1.5$ 1.4$ 1.4$ Labor Gross per Advisor (per month) 36,067$ 40,802$ 59,657$ Internal 1.0$ 0.8$ 1.0$

Dept Gross per Employee (per month) 14,696$ 17,191$ 26,101$ Gross Productivity

Service Dept. Gross ProductivityG/P as a % of sales Parts Dept.Customer Pay 72.6% 75.4% 78.1% G/P as a % of SalesWarranty 71.3% 78.4% 80.2% Customer Pay 37.4% 39.4% 42.2%Internal 71.3% 72.4% 75.5% Warranty 33.3% 31.9% 35.1%Sublet Repairs 8.1% 14.1% 17.9% Internal 26.9% 30.2% 29.4%Total Department 66.7% 69.5% 71.5% Counter Retail 34.3% 33.4% 36.9%

Wholesale 19.0% 21.1% 25.2%Net Profit as a % of Sales 17.4% 19.5% 19.2% Customer Pay ‐ Body Shop 32.3% N/A 32.4%

Warranty ‐ Body Shop 30.8% N/A N/ATotal Dept GP% 32.6% 32.5% 34.0%

Expense Control Structure Guidelines Net profit as a % of Sales 11.4% 12.7% 13.7%Service Dept.

Total expense as a % of Total GP 79.8% 82.1% 77.9% Expense Control Structure GuidelinesParts Dept.

Personnel Exp as a % of G/P 41.9% 40.2% 40.9% Total Exp as % of Total G/P 51.9% 66.2% 59.3%Adv & Training as a % of G/P 7.2% 3.6% 3.8%Tools, Supp, Freight as a % of G/P 1.5% 0.9% 1.2% Personnel Exp as a % of G/P 32.3% 33.2% 28.8%

Advertising & Training as a % of G/P 3.0% 1.9% 1.5%Tools, Supp, Freight as a % of G/P 1.1% 1.1% 1.1%

Domestic Import HighlineFixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer Domestic Import HighlineOffice Staff to Total Dealership 1:10 1:10 1:12 Fixed Expenses ‐ Percent of Total Gross Dealer Dealer Dealer

Absorption % 78.4% 81.7% 90.7%Total Expenses as a % of Total Gross 92.0% 84.1% 81.6%Payroll Taxes as a % of Total Gross 4.8% 4.4% 4.2% Net Earnings

% of Total Sales 3.1% 3.5% 4.1%Owners Compensation as a % of Sales 0.7% 0.7% 0.8% % of Total Gross 28.3% 24.9% 31.8%

Rent Factor Personnel Expense as a % of Gross profit 44.2% 42.9% 40.9%Percent of Total Gross 7.7% 8.4% 10.0% Office Compensation as a % of Total Gross 4.2% 4.4% 3.5%

2012 Automotive Industry Guidelines

Parts Manager 18

Base: $52,000 Base pay is % of projected income: 54% Commission: .5 % of combined parts and service gross 1.0 % of combined parts and service net Bonus: Other Compensation:

Demo allowance $500, Matching 401K 10% up to 6% of income _______________________________________________________________

General Dealership Information:

Dealer Franchise(s): Honda

Monthly Sales Vol. (new & used): 201 - Negotiated Sale # of Sales People: 17 # of Mechanical Technicians: 21 - Non-Union NO

Benefits:

Health Insurance: Yes % Paid by Dealership: 50

Life Insurance: Yes Amount:

Prescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 5-1 year, 10-2 years, 15-8 OR 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits:

_______________________________________________________________

Comments: An arithmetic lesson: By definition, the net profit is some percentage of the gross. So paying a bonus based on both the gross and net is really paying a percentage of the same dollars. Pay on either the gross or net, not both. Figure out what the right % should be.

Parts Manager 182

Base: $200 per week Base pay is % of projected income: Approximately 10% Commission: 4% of departmental gross including Oil, Tires and S/O allowance Bonus: $700.00 monthly if CFI is attained Other Compensation: _______________________________________________________________


Dealer Franchise(s):

Monthly Sales Vol. (new & used): - # of Sales People: # of Mechanical Technicians: -

Benefits:

Health Insurance: % Paid by Dealership:

Life Insurance: Amount:

Prescription Plan: Dental Plan: Profit Sharing: Stock Options: Retirement Plan: # Vacation Days: # Paid Sick Days: Paid Holidays: Other Benefits:

_______________________________________________________________

Comments: $104,000 is the projected income for this parts manager. The dealer refused to tell us anything about the store’s volume, but the formula is OK.

Parts Manager 185

Base: Nothing Base pay is % of projected income: 0% Commission: 6% of parts and service gross less certain expences.

same as #2 Bonus: Other Compensation: _______________________________________________________________




Benefits:




_______________________________________________________________

Comments: Don’t like the pay plan? Don’t worry. It will be changed very soon. Full commission pay plans for dealership managers do not work over the long haul!

Parts Manager 195

Base: $400 per week Base pay is % of projected income: 22% Commission: 15% parts dept net profit - no adjustments Bonus: Other Compensation: _______________________________________________________________




Benefits:




_______________________________________________________________

Comments: $400/week plus 22% of the parts gross is one approach. A better way would be $700/week plus 10% of the gross. Same basic results with more control and less risk for the dealer.

Parts Manager 20

Base: $500 per week Base pay is % of projected income: 35-40% Commission: 5% of parts gross Bonus: none Other Compensation:

none _______________________________________________________________


Dealer Franchise(s): Toyota, Lexus

Monthly Sales Vol. (new & used): 201 - Negotiated Sale # of Sales People: 14 # of Mechanical Technicians: 14 - Non-Union SERVICE TEAMS

Benefits:

Health Insurance: Yes % Paid by Dealership:


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes 401k # Vacation Days: 10 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits:

_______________________________________________________________

Comments: Good pay plan for the parts manager in his big Toyota store.

Parts Manager 215

Base: $1,000.00 per week Base pay is % of projected income: 75% Commission: 5% of Department Gross Profit minus freight, policy, salary, travel, entertainment. Bonus: 1% of net salary if objectives met Other Compensation: _______________________________________________________________




Benefits:




_______________________________________________________________

Comments: Don’t know what the volume is for this dealership, but assuming it is fairly strong, this is a very good pay plan for the parts manager. Addition of a 1% of income bonus at year-end is a good idea.

Parts Manager 22

Base: $3,000/monthly Base pay is % of projected income: 30% Commission: 5 percent of parts department gross profit Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): BMW Porsche Volkswagen Subaru Isuzu

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 25 # of Mechanical Technicians: 35 - Non-Union Service Teams

Benefits:


Life Insurance: Yes Amount: 100K

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits:

_______________________________________________________________

Comments: Simple and direct. An improvement would be to raise the salary and lower the commission %, but otherwise OK.

Parts Manager 27

Base: $2,400 Base pay is % of projected income: 30% Commission: 10% pats department net Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): Ford

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 10 # of Mechanical Technicians: 12 - Non-Union

Benefits:


Life Insurance: No Amount:

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 15 # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits:

_______________________________________________________________

Comments: Looks reasonable for this medium sized Ford store

Parts Manager 28

Base: $52,000 Base pay is % of projected income: 60% Commission: 2% of parts sold gross Bonus: 5% of parts net profit after transfer Other Compensation: _______________________________________________________________


Dealer Franchise(s): Chevrolet

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 13 # of Mechanical Technicians: 8 - Non-Union Sales teams with alternating schedules

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes # Vacation Days: 5 days after one year of employment # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits:

_______________________________________________________________

Comments: Pay the bonus on the gross or the net but not both! It can create some perverse incentives for the manager and, after all, aren’t they relay the same dollars?

Parts Manager 3

Base: $45,825 Base pay is % of projected income: 100% Commission: Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): Toyota 7 Cadillac

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 14 # of Mechanical Technicians: 12 - Union

Benefits:


Life Insurance: Yes Amount: 0

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits:

_______________________________________________________________

Comments: This is OK, but if we had our druthers, we’d add a bonus component equal to 5% of the base for exceptional performance.

Parts Manager 31

Base: $1,200 Draw Base pay is % of projected income: 30% Commission: 4 % of total parts sales Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): KIA Chevy

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 7 # of Mechanical Technicians: 5 - Non-Union

Benefits:



Prescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 7 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits:

_______________________________________________________________

Comments: This isn’t even a good way to pay a counterperson let alone a manager. Salary plus small bonus for strong performance is the right way to do it!

Parts Manager 32

Base: $1,000/week Base pay is % of projected income: 25% Commission: 3.75% total parts gross profit Bonus: CSI Bonus $2,400 to zero per year Other Compensation:

QOY Bonus $2000 to $10,000 _______________________________________________________________


Dealer Franchise(s): Cadillac

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 7 # of Mechanical Technicians: 7 - Non-Union Tech's work on the full car - not specialized

Benefits:

Health Insurance: Yes % Paid by Dealership: 50%


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes PENSION AND 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years # Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits:

_______________________________________________________________

Comments: As I look at it, this is actually a good way to pay a parts manager. Make sure that total pay is right for your market.

Parts Manager 36

Base: $1,000 monthly Base pay is % of projected income: 18% Commission: 4.45% of Total P&A Gross Bonus: $300 forecast bonus Other Compensation: _______________________________________________________________


Dealer Franchise(s): Buick Pontiac GMC

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 12 # of Mechanical Technicians: 15 - Non-Union Due to the decrease in sales volume, we have created selling manages and administrative managers

Benefits:

Health Insurance: Yes % Paid by Dealership: 50% of Employee, 0% of Spouse and family


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits:

_______________________________________________________________

Comments: For a dealership this size, this is a good way to pay the parts manager. Solid salary plus a bonus component that is easy to track and within the manager’s control.

Parts Manager 37

Base: $39,780 per year Base pay is % of projected income: 60% Commission: 3% of parts net profit and .5% of service net profit Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): Toyota and Scion

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 14 # of Mechanical Technicians: 9 - Non-Union No

Benefits:


Life Insurance: Yes Amount: One year's gross wage

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401k, Safe Harbor # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits:

Birthday off with pay _______________________________________________________________

Comments: Excellent pay plan formula. Nice salary component plus a bonus plan that mixes both parts and service performance.

Parts Manager 39

Base: $2,500 per month Base pay is % of projected income: 30% Commission: Bonus: Paid monthly, 12% of adjusted selling gross parts dept. Other Compensation:

Demo _______________________________________________________________


Dealer Franchise(s): Ford Lincoln Mercury

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 14 # of Mechanical Technicians: 15 - Non-Union No

Benefits:

Health Insurance: Yes % Paid by Dealership: 100% paid by the dealership for the employee


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401k # Vacation Days: 5 days for 1 year and 10 days for 2+ years # Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits:

Vision _______________________________________________________________

Comments: $30,000/yeaqr plus 12% of the adjusted pars gross. That should work out fine.

Parts Manager 4

Base: $5,458 per month Base pay is % of projected income: 35-40% Commission: 1.92% of Parts Gross Bonus: NA Other Compensation:

NA _______________________________________________________________


Dealer Franchise(s): Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge Jeep

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 36 # of Mechanical Technicians: 54 - Non-Union Lexus - Technician Team System

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401k # Vacation Days: 5 after 1 year. 10 after 2 years. 15 after 7 years. # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits:

Voluntary Supplemental - AFLAC, Mutual of Omaha _______________________________________________________________

Comments: 1.92% of the gross. Just plucked that number out of the air did you? Or are you really trying to make the pay plan fit some predetermined level of compensation?

Parts Manager 41

Base: $2,500 Base pay is % of projected income: 50% Commission: 6% Parts Gross Bonus: Other Compensation:

Demo _______________________________________________________________


Dealer Franchise(s): Chevrolet here

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 14 # of Mechanical Technicians: 12 - Non-Union Service Groups, similar to lat support

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 per year, max of 15 # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits:

_______________________________________________________________

Comments: Total pay is expected to be about $60,000 a year. Sounds right. Will this pay plan do it? In normal years, but what about unusual years?

Parts Manager 42

Base: $530 per week Base pay is %of projected income: 50% Commission: 5% of Parts dept. gross less controllable expenses ( Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): Cadillac, Saturn & Hummer

Monthly Sales Vol. (new & used): 201 - Negotiated Sale # of Sales People: 30 # of Mechanical Technicians: 41 - Non-Union No

Benefits:

Health Insurance: Yes % Paid by Dealership: 50% of base plan, offer buy up plan

Life Insurance: Yes Amount: Company paid $20,000 coverage

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401(k) # Vacation Days: 5 days after year, 10 days after 2 years # Paid Sick Days: up to 4 1st yr, 6 after 1 yr, 11 after 10 years Paid Holidays: 6 Other Benefits:

_______________________________________________________________

Comments: This should work out just fine

Parts Manager 5

Base: $2,500 Base pay is % of projected income: 30% Commission: 5.5% of parts department net profit Bonus: Other Compensation:

Group benefits _______________________________________________________________


Dealer Franchise(s): Chrysler, Dodge, Jeep

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 12 # of Mechanical Technicians: 22 - Non-Union yes

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes Group RRSP # Vacation Days: 10 after one year, 15 after 5 years, 20 after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits:

_______________________________________________________________

Comments: Hard to go wrong with this approach. Remember, pay a bonus on the gross or the net but not both!

Parts Manager 50

Base: $40,000 Base pay is % of projected income: 60% Commission: Bonus: 10% of Gross Profit less direct costs Other Compensation: _______________________________________________________________


Dealer Franchise(s): Freightliner

Monthly Sales Vol. (new & used): <50 - One-Price Store # of Sales People: 8 # of Mechanical Technicians: 60 - Non-Union no

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401k # Vacation Days: up to 3 weeks max based on years of service # Paid Sick Days: 0 Paid Holidays: 8 Other Benefits:

Match 401k _______________________________________________________________

Comments: The formula is fine but in a small store like this, the temptation is to boost the commission percentage to fit some predetermined pay range. The fact is that the parts manager in this store is probably doing two or three jobs so some combination type pay plan would be in order.

Parts Manager Base: $2,500 month Base pay is % of projected income: 25% Commission: 5% commission based on adjusted selling gross includes the parts to labor gross transfer Bonus: Other Compensation: _______________________________________________________________


Dealer Franchise(s): Ford Lincoln-Mercury Mazda

Monthly Sales Vol. (new & used): 201 - Negotiated Sale # of Sales People: 24 # of Mechanical Technicians: 41 - Non-Union Simple Support with a Quick Service team of 18 Techs

Benefits:

Health Insurance: Yes % Paid by Dealership: First $150.00 not a %

Life Insurance: Yes Amount: 10K Paid by the Company

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 5 days 1st Year, 10 days after 3 Years 15 days after 10 years # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits:

N/A _______________________________________________________________

Comments: High volume dealership equals a high income for the parts manager. No problems.

Parts Manager 55

Base: $53,000 Base pay is % of projected income: 60-75% Commission: Bonus: TIERED BONUS on selling gross Other Compensation: _______________________________________________________________


Dealer Franchise(s): Ford Lincoln Mercury Mazda

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 7 # of Mechanical Technicians: 10 - Non-Union no

Benefits:

Health Insurance: Yes % Paid by Dealership: 33.3


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 1-3 weeks # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits:

demos _______________________________________________________________

Comments: Since this is precisely the pa plan formula we recommend, I can’t find any fault with it.

Parts Manager 6

Base: $4,167/monthly Base pay is % of projected income: 55% Commission: 1.0% Parts GP 1.0% Parts operating profit Bonus: Hit GP Target = $1000 Other Compensation: _______________________________________________________________


Dealer Franchise(s): Lexus

Monthly Sales Vol. (new & used): 101-200 - Negotiated Sale # of Sales People: 18 # of Mechanical Technicians: 15 - Non-Union Service Teams

Benefits:


Life Insurance: Yes Amount: 2 X Gross Earnings

Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits:

Purchase Plan, Ed Asst. LoS Awards. _______________________________________________________________

Comments: Dealers who pay bonuses on both the gross and the net profit are really picking their own pockets. It is all the same $$.

Parts Manager 61

Base: $5,000 Base pay is % of projected income: 50% Commission: 3% of Parts gross profit Bonus: CSI: $500 for green, $150 for yellow Earn Parts excellence award: $500.00 Other Compensation:

Paid health insurance _______________________________________________________________


Dealer Franchise(s): Toyota

Monthly Sales Vol. (new & used): 201 - Negotiated Sale # of Sales People: 25 # of Mechanical Technicians: 35 - Non-Union Yes

Benefits:



Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits:

Offer Employee Paid Supplemental Ins., Employee Discounts _______________________________________________________________

Comments: Looks like a good way to do it.

Parts Manager 62

Base: $30,000 Base pay is % of projected income: 66% Commission: Bonus: 8% of total fixed gross. NOT just parts gross Other Compensation: _______________________________________________________________


Dealer Franchise(s): Chev

Monthly Sales Vol. (new & used): 51-100 - Negotiated Sale # of Sales People: 4 # of Mechanical Technicians: 6 - Union no

Benefits:

Health Insurance: Yes % Paid by Dealership: 100% employee only


Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401-k # Vacation Days: 10 # Paid Sick Days: 4 Paid Holidays: 7 Other Benefits:

_______________________________________________________________

Comments: Tiny store. Hard to go wrong with any approach. Make sure that the job duties line up with the pay plan.

key performance indicators (kpi) for parts managers – de ... · pdf filekey performance...

Documents