View Single Post
Old 11-29-2015, 08:54 AM   #10
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by mryan55 View Post
We have a dealership in our district averaging 33% MSR over the last few years, so it's probably not worth pursuing a termination and the costs for corporate that would come with it.
I totally agree.

In the old days an OEM may have taken on a dealer that had a 33% MSR to set an example for the rest of the dealer network but that's no longer the case today.

Quote:
Originally Posted by mryan55 View Post
Likewise, with MSR tied more to state and DMA registration trends than our prior performance we have stayed between 200% and 250% MSR for two years. Over the last year we have not had a large change on a "carrot" number for the VGP program either... it has stayed pretty consistent even as our average retail new per month has gone from 65 to 95.
That's a really interesting comment.

In the old days I remember asking a DOM for the formula for MPA/VPA because I wanted to create an Excel spreadsheet and calculate the store's objective on my own.

I quickly learned that the MPA/VPA objective was about as complex as cracking a nuclear code but I was intrigued that one of the variables was MSR. Essentially, dealers with very high MSR percentages were spared from the "hit then miss" cycle that most other dealers faced with their objectives.

It's one of the reasons I've always been intrigued by the Dave Smith Motors business model. Not only does Dave Smith have a super-low overhead because they're in a rural market, they also have the benefits associated with having a super high MSR percentage.
XDCX is offline   Reply With Quote