The numbers management watches, and what they actually tell you. The trap is reading any one alone or reading only lagging results you can no longer change. The headline numbers Absorption — the share of fixed overhead covered by parts-and-service gross; the single best read on whether the dealership survives a bad equipment year (healthy…
A written deal is the start of a chain that runs through three departments and ends — if it’s done right — not at handover but at a relationship that produces the next machine. The delivery is the first day of ownership, not the last step of a sale. The chain Sale written → sourced…
Where gross, net, absorption, floor plan, and inventory actually show up — enough to read the two statements without being an accountant. The income statement (P&L) Revenue by department, minus cost of goods, gives gross profit — the number people quote. Subtract operating expenses (the whole cost of doing business: salaries, facility, insurance, floor-plan interest,…
The denominator under absorption. Gross is only half the picture; the cost of keeping the doors open is the other half, and it’s large enough to turn a strong gross year into a loss. Fixed vs variable Fixed costs run whether or not a machine sells — facility, most salaries, insurance, utilities, software, and the…
Four forces are reshaping the business, and they change what customers ask and what the dealership sells. Consolidation Fewer, larger farms and fewer, larger dealer groups every year. Remaining customers are bigger, more sophisticated, often with a full-time equipment manager, buying more machine per deal and expecting a salesperson who talks their business. Dealers run…
