What would happen to your business if you had…
No internet
No network
No phones…. for one entire day!!
How much would that cost you?
In the case of your average Automobile Dealership…
The average daily gross profit for new automotive dealerships can vary significantly based on factors like the dealership's size, location, brand mix, inventory levels, and overhead costs.
According to data from the National Automobile Dealers Association (NADA), the average new vehicle dealership in the US had total annual sales of around $70.1 million in 2022.
The average dealership gross profit margin across all departments (new vehicles, used vehicles, service, parts, and financing) was about 12%.
Applying this 12% gross margin to the $70.1 million average annual sales figure would imply around $8.4 million in annual gross profit for said dealership.
Dividing that by 365 days (who is open all year) would yield a very rough estimate of about $23,000 in gross profit per day on average.
However, please note this is a highly simplified calculation based on industry-wide averages - actual daily gross profit can vary tremendously from one dealership to the next and from day to day based on sales volume and mix.
Let’s just say….it’s more than anyone would like lose because of a system outage. 💰💰
When budgeting for your IT spend this potential loss should be considered.
While we don’t know how to stop acts of nature…we can design redundancies in power, internet, data access, and equipment.
Outages should be rare if ever.
Run the numbers, they will tell you how much to investment in protecting your business, or ask me.
#PhoneBill ☎️ (and more)
#msp
#ucaas
#automotive
Husband. Dad. Work in Progress.
5moI learned how to look up my own warranty times very early on in my tech career. Helped me immensely when learning how to beat flat rate. Over the years I started coding out all of my own warranty and got very familiar with what the manufacturer wanted, actually needed in order to process a claim properly. Once I started doing warranty admin full time it was actually pretty easy to manage so long as everyone is on the same page. Techs, parts, advisors, service managers att at once. Attention to detail and adherence to policy. There is no room for “gray areas” or fudging of info.