Benchmarks are an important tool to monitor, compare and identify opportunities to improve dealership profitability and setting future goals. While important, it is equally as important to understand the factors that influence the dealerships performance (e.g. franchises, geographic location, etc.) and establish your own internal benchmarks.
BDO’s benchmarks are based on actual industry data which has been adjusted (normalised) for extraordinary income and also to reflect commercial expenses for items such as rent, floorplan interest and employee costs.
BDO’s normalised data showed the average Net Profit to Sales in 2017 for a dealer with volume brands was 2.4 per cent. The average of the top 50 per cent was 2.9 per cent which reflects the benchmarks printed.