Revenue Growth/Cost Control/ Profitability Flashcards
Why is it so important for our company to be profitable?
-Stay privately owned
-Provide new tech
-Open new branches
-Pay employees
Know the Revenue Plan
Revenue
- Lot plan- walk the lot, organize from high price to low price
- Contract by contract management- 6 step sales process
- Morning huddles- motivate for sales and service
- Rate tracker- making right rate on cars
- Sales training- role play
- Charge for miles, extra hours, extra drivers, underage drivers
- Hang up sales #’s
Know the Cost Control Plan
Cost Plan
- Proper Underwriting
- Sell fuel options
- Walk around that start and end at the trunk
- Return Day and Last Day callbacks worked daily
- 100% accident report quality
- Cost tracker updated by Wednesday
Per Unit Analysis Goals
Operating Profit (total revenue-expenses)
Revenue
Net Other (DW+RAP+SLP+PAI)
Bad debt (uncollected ARs,chargebacks,write offs)
Loss per car
Uninsured loss
Fuel
Cus sat
Personnel
TandE
Operating Profit: $200
Revenue: $20 increase
Net Other: $105 or increase in $10
Bad debt: $5
Loss per car: $40
Uninsured loss:$10
Fuel: ($3.50)
Cus sat: $2.50
Personnel: $165
T and E: $2
Formulas and how to impact
Average Daily Rate
$1 higher = $27 increase to IPC
ADR=CandI /# Days/ DE%
How to impact: walk the lot, sell upgrades, plan fleet so we have options
Formulas and how to impact
Insurance Average Daily Rate
IADR=CandI/ # Days/ DE%
How to impact: if you don’t have vehicle that maxes insurance rate s/o customer when you get one, present rental as credit from insurance and not as free rental
Formulas and how to impact
Income per Car
IPC=CandI + Net other
How to impact: grow
Formulas and how to impact
Break Even
Add up all costs
-Gross costs, personnel expense, operating expense, branch+group+corporate overhead
How to Impact: Manage costs, plan fleet to control depreciation, sell fuel that is a credit, manage employee hours
Formulas and how to impact
Operating Profit
OP=Revenue - Breakeven
How to impact: sell and manage costs
Formulas and how to impact
Net profit
NP=OP+ Vehicle Adjustment
How to impact: turn in flips ASAP
Direct cost (TIMIDMF)
Title/License
Interest
Maintenance
Insurance
Depreciation (biggest impact)
Miscellaneous
Fuel
Understand uninsured losses, reserves, and loss per car
Undocumented damages, Employee Accident(Liability), Employee Accident (ERAC car), and Conversion
Money set aside for DW losses, rolling 12 month average, loss per car + 10%
Loss per car= (DW losses + Subro bad debt)/ # units
Know fact finding questions, feature-bridge-benefit statements and handling objections from the internal sales training playbook
How long are you on the rental car?
This vehicle has dual climate control, which is great for you because, your coworkers will be more comfortable while traveling to the meeting.
Listen, paraphrase, address concern and restate benefits, ask for sale. (I already have insurance. That’s great. Our product provides value to ppl who are fully covered. This way, you can avoid having to pay your deductible or file a claim)
Know features and benefits of all products
GPS $10.95/ day
Toll Pass Waiver $7.99/day
Fuel options- prepay, post pay, pay at the pump
SiriusXM Satellite Radio $5.99/ day
DW- waives financial responsibility for damages, theft, up to a total loss $18.49 or $22.49 (7+)/day
PAI/PEC- pays minor medical deductibles to renter, authorized drivers, and passengers. pays for replacement costs of belongings $750/person up to $2,500 max $6.00 or $12.00 (10+)/day
SLP- pays 3rd party damages up to 1 mil dollars $14.99/ day
RAP- key replacement, towing, flat tire, jumpstart, and gas replacement $4.99/ day
Know best practices for fuel
Don’t share gas pins
Prepay, post pay options
Gas should be a credit not a cost
