Now that you've reached the point in your operation where your sales and GP% levels are at the maximum, there really is only one other factor that can affect your bottom line assuming everything else remains constant, and that is of course, your expenses.

It's amazing that operations that are so involved, so intricate, and potentially so profitable, monitor expenses as if they were operating a lemonade stand. For example, most operations employ a local linen company to provide and clean floor mats around entrances and the write up area. Ask yourself these questions (which may seem absurd), but I bet you can't answer, "How many floor mats do you have, the cost of each floor mat, and how often are they to be cleaned?"

If you can answer those questions, great; however, I have one more for you. "Does your actual contract from the supplier match what you think?" The reality is, for the most part, no one knows and no one monitors. Consider how we perform our accounting functions. An accounts payable clerk pays the bills and maybe but usually not, a Service Manager approves them. I know how most Service Managers approve invoices, and so do you-simply by looking at the totals. If the total looks the same or close to, what it is every month, it's approved. Unfortunately, that means if you are being over billed, as long as you are over billed every single month, no one will notice. Consider your DMS's, who are known for their bizarre billing-do we even know what the total is supposed to be? If we don't, how can we pay it confidently? The fact is, automotive operations are targets for suppliers. To a supplier anyone can approve "more mats", and no one understands what a total should be; therefore, "billing errors" pop up more frequently in an automotive operation, than I bet in any other industry.

At Auto University we know how to reduce your everyday expenses and put processes in place to ensure there aren't future "billing errors". When sales are great, expense reduction means more net profit which is the number that really matters, now isn't it?

Click here to contact your Auto University Specialist, and increase your net profit today!