Consept 20 Group Presentation

Consept Corporation117 Irvington Road

Kilmarnock, Virginia 22482

(804) 435-6150

[email protected]

"When Performance is Measured, Performance Improves"

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Kilmarnock, Virginia - Head Office◦Alexandra and Richmond Virginia offices

Michael Lynch, President Tom McLaughlin, Executive Vice President Larry Peranski, Senior Vice President Consulting, Training and

National Accounts Performance Incorporated◦ 2nd largest 20-Group provider – sold to ADP 1998◦ 29 Years experience◦ San Paulo, Montreal, Washington D.C. and Toronto◦ Purpose of 20 Group

Consept – 2000 - 2008

"When Performance is Measured, Performance Improves" 2

Company Description◦ Consept™ provides high-impact 20-group and consulting services to Automotive Dealerships

across the country. Our program provides dealers the opportunity to improve profitability through comparative financial analysis and exchange of best practices.

Mission Statement◦ The mission of Consept™ is to provide each group of dealers with the opportunity to

significantly improve every aspect of their operation through motivation, innovation and knowledge. Consept™ has developed a secure Web Site, which allows its clients access to current information concerning their groups agenda, ideas and electronic goal tracking. The development of our composite in the latest software allows Consept™ clients to view their financial rankings in a visually intuitive form, while using technology to better serve our clients and reducing their business expense.

Consept Business Plan◦ Our business plan is to develop and run high profile Business Management Groups where

managers and dealers participate in all meetings. We are interested in developing working groups with dealers who are interested in maximizing profitability while remaining small enough to analyze key internal processes in the dealership. Consept™ will challenge both dealers and managers to improve their performance by holding them accountable for objectives set at the meetings. We will not exceed our business plan since we feel it’s in the best interest of our clients and company to provide a quality composite in conjunction with high-impact meetings.


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What sets us apart from the Competition Bridging the Retail – Wholesale Gap◦ What is truly unique about our 20-groups and training is our commitment to

accountability. Training is not an event, but an ongoing process. At the conclusion of the each meeting, all dealerships will be required to set measurable goals and objectives. These goals will be set based on our financial analysis and measured monthly to assure what is taught is not forgotten. Consept™ provides the dealers with a custom-made monthly composite to measure their performance. We strongly recommend follow-up sessions every four to five months. At these sessions all members will be required to stand up in front of their peers, present their goals and be held accountable. Consept™ will track the goals monthly and provide all members a measurement tool with which to measure the financial performance of the program.


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Road to Profitability1.Recognizing and isolating financial and operational opportunities2.Measure opportunity costs missed through the use of the Consept composite3. Developing action plans4. Implementing process changes at the retail level for department managers5. Tracking goals monthly and holding members accountable for their performance

One thing is certain, solid, well thought-out processes lead to improved profitability.

Business Management Program:◦ Consept provides a complete Business Management solution for dealers and

manufacturers 20-Groups

National and Regional Groups Set groups by dealership size, volume and geographic location

District Manager Training DSM 20-Group Program DSM 20-Group Composite Business Management training for DSM’s

Variable and Fixed Operation Training Sales Manager Training, Service and Parts Manager Training, Secretary Treasurer Training

National Benchmarking Composite National, regional manufacturer composites


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Composite Development – The Consept™ composite is considered one of the best in the industry. Our composite compares the group member’s data against top industry benchmarks, top performing dealerships and their own group average. Consept also offers customized composites which are developed for dealers/general managers, sales, service and parts managers. Dealers receive a composite analysis of the total operation, whereas managers will receive composites containing financial data for their respective department. Department manager composites will not reveal total dealership net profit or other department’s performance other than their own. The financial composite is critical to measuring the effectiveness of the training and setting measurable objectives.


August-2008 8 8 8 8 8 8

ConSept Training & Groups 17 5 12 6 16 4 ConSeptD NET PROFIT ANALYSIS Hometown City National Riverview Williams Jerry AVG

23 CD03 - RANKING LINE = 23 1 2 3 4 5 6

1 NET PROFIT BEFORE TAX AVG MTH 105,347 362,108 316,910 530,555 230,750 191,722 248,5212 NET PROFIT % SALES AVG MTH 5.50 4.21 3.66 4.97 2.34 3.35 3.563 NET PROFIT % GROSS AVG MTH 28.92 24.92 25.51 27.76 21.34 20.31 21.774 NET PROFIT BEFORE TAX THIS MTH 129,038 274,845 176,233 565,630 309,481 288,523 273,2755 NET PROFIT % GROSS THIS MTH 30.65 20.73 18.15 29.62 26.49 25.08 23.706 VOLUME ANALYSIS7 TOTAL SALES AVG MTH 1,914,816 8,603,526 8,662,804 10,666,095 9,845,734 5,715,605 6,869,6258 TOTAL NEW UNITS SOLD AVG MTH 32 139 138 162 197 72 1119 TOTAL SALES THIS MTH 2,191,735 7,727,748 6,290,041 9,032,549 9,280,172 5,506,812 6,188,374

10 TOTAL NEW UNITS SOLD THIS MTH 33 131 96 129 210 62 10011 TOTAL GROSS ANALYSIS12 TOTAL GROSS AVG MTH 364,221 1,453,141 1,242,195 1,911,258 1,081,060 944,123 1,081,08113 GROSS % SALES AVG MTH 19.02 16.89 14.34 17.92 10.98 16.52 16.4114 TOTAL GROSS THIS MTH 421,058 1,325,862 970,788 1,909,380 1,168,160 1,150,395 1,091,75215 GROSS % SALES THIS MTH 19.21 17.16 15.43 21.14 12.59 20.89 17.9216 TOTAL EXPENSE ANALYSIS17 TOTAL EXPENSES AVG MTH 251,933 1,040,514 890,285 1,386,448 817,801 727,311 812,33418 EXPENSE % GROSS AVG MTH 69.17 71.60 71.67 72.54 75.65 77.04 76.8019 TOTAL EXPENSES THIS MTH 257,522 1,012,810 771,483 1,328,196 837,543 813,116 794,92920 EXPENSE % GROSS THIS MTH 61.16 76.39 79.47 69.56 71.70 70.68 74.5721 OPERATING PROFIT ANALYSIS22 OPERATING PROFIT AVG MTH 112,289 412,627 351,910 524,810 263,259 216,812 268,74723 ** OPER PROFIT % GROSS AVG MTH *KEY* ** 30.83 28.40 28.33 27.46 24.35 22.96 23.20

24 OPERATING PROFIT THIS MTH 163,536 313,052 199,305 581,184 330,617 337,279 296,82325 OPERATING PROFIT % GROSS MTH 38.84 23.61 20.53 30.44 28.30 29.32 25.4326 NET ADDITIONS & DEDUCTIONS AVG MTH -6,942 -50,519 -35,000 5,745 -32,509 -25,090 -20,22627 NET ADDITIONS & DEDUCTIONS % GROSS -1.91 -3.48 -2.82 0.30 -3.01 -2.66 -1.4328 NET ADDS & DEDUCTS THIS MTH -34,498 -38,205 -23,072 -15,556 -21,136 -48,757 -23,54829 NET PROFIT BEFORE TAXES AVG MTH 105,347 362,108 316,910 530,555 230,750 191,722 248,52130 NET PROFIT B. TAX % GROSS AVG MTH 28.92 24.92 25.51 27.76 21.34 20.31 21.7731 NET PROFIT BEFORE TAX THIS MTH 129,038 274,845 176,233 565,630 309,481 288,523 273,27532 NET PROFIT B. TAX % GROSS THIS MTH 30.65 20.73 18.15 29.62 26.49 25.08 23.7033 NET PROFIT PREVIOUS YEAR34 NET PROFIT THIS YEAR 842,774 2,896,860 2,535,283 4,244,442 1,845,998 1,533,774 1,988,17135 NET PROFIT PREVIOUS YEAR 124,411 1,845,219 3,421,047 4,542,054 116,152 1,872,867 1,905,82736 NET PROFIT +/- PREVIOUS YEAR 718,363 1,051,641 -885,764 -297,612 1,729,846 -339,093 82,34337 NET PROFIT % CHANGE 577.41 56.99 -25.89 -6.55 1489.30 -18.11 190.64

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Consept Average

Key LineRanking

Page DescriptionComposite Program

•Monthly Composites •Dealer and Department Management

•Hard Copy and Electronic Books•Composite Divided into Five Sections with Directional Page

•Total Operation•Balance Sheet Analysis

•Trend Composite•Composite Explanation Manual

Meeting Locations – Locations selected by the group. Consept handles all administrative arrangements i.e. meeting room, hotel reservations, food, coffee breaks, group dinners. No off shore or resorts.

Meeting Schedule – Three two-day meetings per year, no half day sessions

Meeting Format – ◦ Meeting Agenda – 30 days in advance – Agenda Topic Form




Meeting Format – ◦ Meeting Agenda – 30 days in advance – Agenda Topic Form




Meeting Format – ◦ Meeting Agenda – 30 days in advance – Agenda Topic Form◦ 20-Groups are set up in U-Shape square◦ Dealer/General Manager and Department Managers

Dealer and Department Manager Composites

◦ Composite review by group moderator – challenge dealers and ask the tough questions!

◦ Dealer “Hot Seat”






◦ Composite review by group moderator – challenge dealers and ask the tough questions!◦ Dealer “Hot Seat”◦ Special Studies


DEALER TRADE STUDY H

CARTER PEMBINA BRIDGE LANGLEY BIG FOUR TOWER AVG

1 DEALER TRADES IN - CARS 9 5 5 7 58 12 13.714292 DEALER TRADES - CARS GROSS $792 $889 $1,395 $1,589 $383 $1,299 $9073 DEALER TRADES - CARS F&I $256 $309 $941 $907 $278 $452 $4494 DEALER TRADES CAR - OUT 15 7 11 19 47 0 145 TOTAL DEALER TRADES - CAR 24 12 16 26 105 12 286 % DEALER TRADES CARS IN 20% 25% 17% 12% 53% 4% 29%7 % DEALER TRADES CARS OUT 34% 35% 5% 3% 29% 4% 14%8 TOTAL DEALER TRADES - CAR % 55% 60% 80% 22% 36% 17% 76%

9 DEALER TRADES IN - TRUCK 43 17 52 55 39 30 33.7142910 DEALER TRADES - TRK GROSS $845 $996 $1,029 $1,606 $1,102 $895 $92511 DEALER TRADES - TRK F&I $249 $206 $322 $793 $256 $335 $30912 DEALER TRADES OUT - TRUCK 89 23 103 8 39 0 3713 TOTAL DLR TRADES - TRUCK 132 40 155 63 78 30 7114 % DEALER TRADE TRK - IN 36% 24% 21% 31% 25% 14% 24%15 % DEALER TRADE TRK - OUT 74% 32% 42% 4% 25% 0% 26%16 TOTAL DLR TRADES - TRK % 88% 56% 64% 35% 50% 14% 50%

17 CARS 44 20 32 44 44 72 3718 TRUCKS 120 72 244 180 156 220 142

164 92 276 224 200 292 96

TOTAL RO'S FOR ONE ADVISOR PER DAY 12

NUMBER OF WORKING DAYS IN A MONTH 21

TOTAL RO'S FOR THE MONTH 252

AVERAGE HOURS PER RO 1.74

HOURS SOLD FOR THE MONTH 438.5

EFFECTIVE LABOR RATE $81.34

LABOR SALES FOR THE MONTH (A) $35,666

SERVICE DEPARTMENT GROSS PROFIT PERCENTAGE 70.2%

LABOR GROSS FOR THE MONTH $25,038

LABOR SALES FOR THE MONTH (FROM "A") $35,666

PARTS TO LABOR RATIO 0.79

PARTS SALES $28,176

PARTS DEPARTMENT GROSS PROFIT MARGIN 38.23%

PARTS GROSS FOR THE MONTH $10,772

LABOR GROSS FOR THE MONTH (FROM "B") $25,038

PARTS GROSS FOR THE MONTH (FROM "C") $10,772

POTENTIAL GROSS PER SERVICE ADVISOR PER MONTH $35,809

YTD $429,711





◦ Composite review by group moderator – challenge dealers and ask the tough questions!◦ Dealer “Hot Seat”◦ Special Studies◦ Meeting Recaps






◦ Composite review by group moderator – challenge dealers and ask the tough questions!◦ Dealer “Hot Seat”◦ Special Studies◦ Meeting Recaps

Electronic Goals and Objectives -

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PO Box 734 * 4513 Irvington RdIrvington, Virginia 22480

(804) 438-1024 Fax (804) 438-6994

Send To: Name Email address

Group: * 1

Member #: * 2

Date: 3

Company:

Department: MFG Code: * required fields

Opportunity

Goal Description:

Composite Description:

From the composite that you are currently using: * required fields

Composite Year: 2008 *Composite Month: 8 * Avg MTH or YR% Line: (optional)

Composite Page: 19 * Avg MTH or YR % Value: (optional)

f o r M O N T H L Y T R A C K I N G

Tracking (Mth) Line: 40 * Calculating the amount of change to get to the objective:

Tracking (Mth) Value: 29.56 *(1) Direction of Change *Monthly Objective: 50.00 *(2) Change to reach Goal: 20.44 |(1) - (2)|

Reaching your objective will add $ to the bottom line.

Person Responsible for objective

Describe the steps to be taken:

Name:

Tracking Your Progress: Your composite Goals will be emailed to you

Results: EXT WARR PENETRATION THIS MTH Goal: 50.00

Base 1 2 3 4 5 6

2008 2008 2008 2008 2008 2009 2009

8 9 10 11 12 1 2

19 19 19 19 19 19 19

40 40 40 40 40 40 40

35.66 56.86 39.56 42.67 57.97

159.5% 69.6% 107.9% 135.9%

159.5% 110.9% 119.7% 162.6%

113.7% 79.1% 85.3% 115.9%

$$Added(Missed)SUM $ +/-

Month

Page

MTH Line

% of Base

MTH RESULTS

% of Last Mth

% of GOAL

EXT WARR PENETRATION THIS MTH

[email protected]

[email protected]

ConSept Goals and Objectives

[email protected] Davis

09/26/07

Increase

Action to be taken:

Tim Farley

GL22

4

New

new extended warranty penetration

Hometown Honda

Position:

Year

Objective

YTD Baseline (optional info)

$186,828

Send To: Name Email address

Group: * 1

Member #: * 2

Date: 3

Company:

Department: MFG Code: * required fields

Opportunity

Goal Description:

Composite Description:

From the composite that you are currently using: * required fields

Composite Year: 2008 *Composite Month: 8 * Avg MTH or YR% Line: (optional)

Composite Page: 19 * Avg MTH or YR % Value: (optional)

f o r M O N T H L Y T R A C K I N G

Tracking (Mth) Line: 40 * Calculating the amount of change to get to the objective:

Tracking (Mth) Value: 29.56 *(1) Direction of Change *Monthly Objective: 50.00 *(2) Change to reach Goal: 20.44 |(1) - (2)|

Reaching your objective will add $ to the bottom line.

EXT WARR PENETRATION THIS MTH

[email protected]

ConSept Goals and Objectives

[email protected] Davis

09/26/07

Increase

Tim Farley

GL22

4

New

new extended warranty penetration

Hometown Honda

Objective

YTD Baseline (optional info)

$186,828

Results: EXT WARR PENETRATION THIS MTH Goal: 50.00

Base 1 2 3 4 5 6

2008 2008 2008 2008 2008 2009 2009

8 9 10 11 12 1 2

19 19 19 19 19 19 19

40 40 40 40 40 40 40

35.66 56.86 39.56 42.67 57.97

159.5% 69.6% 107.9% 135.9%

159.5% 110.9% 119.7% 162.6%

113.7% 79.1% 85.3% 115.9%

$$Added(Missed)SUM $ +/-

Month

Page

MTH Line

% of Base

MTH RESULTS

% of Last Mth

% of GOAL

Year

Electronic Goals and Objectives◦ Idea Session - $50 in the pot, ideas are presented by the dealerships, five

minute limit, vote for the best idea – winner takes all! $100 if dealer is not prepared.

◦ Hard Copy of Idea◦ Electronic Copy of Idea

Pay Plan and Job Description Review and Booklet◦ Department manager pay plans◦ Salespeople pay plans, F&I manager, Service Advisor etc◦ Consept proposes running a complete Business Management solution to our

dealers. Dealership Critiques◦ Mystery shop the dealership◦ Group meets at dealership prior to meeting◦ Preselected groups◦ Site visit worksheet


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Dealers Role◦ Dealer principle or general manager must attend all sessions◦ Check signer must be present to make decisions & change processes◦ Dealer is responsible for all goals

Department Managers Role◦ Variable and Fixed Operation meetings – alternate ◦ Manager can not attend in dealers absence◦ This assures buy-in at the retail level◦ Managers responsible for goals and objectives

WebEx Business Management & Composite Review◦ Monthly web conference meetings◦ Track and monitor goals and objectives between meetings


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District Manager Training (manufacturer’s)◦ Two-day District Manager Business Management training

District Sales Manager, District Service and Parts Manager training Financial statement, chart of accounts and composite training Best Practices to help and assist dealers in their respective district

District Manager Business Management 20-Group Two day high impact training Represent their most challenging dealer and learn how to call on them Provide best ideas on how to improve dealer profitability

District Manager Composite Monthly Composite All dealerships in their District on one composite Benchmarks, top 20% and missed opportunity analysis


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Composite Development – The Consept™ composite is considered one of the best in the industry. Our composite compares the group member’s data against top industry benchmarks, top performing dealerships and their own group average. Consept also offers customized composites which are developed for dealers/general managers, sales, service and parts managers. Dealers receive a composite analysis of the total operation, whereas managers will receive composites containing financial data for their respective department. Department manager composites will not reveal total dealership net profit or other department’s performance other than their own. The financial composite is critical to measuring the effectiveness of the training and setting measurable objectives.


August-2008 8 8 8 8 8 8

ConSept Training & Groups 17 5 12 6 16 4 ConSeptD NET PROFIT ANALYSIS Hometown City National Riverview Williams Jerry AVG

23 CD03 - RANKING LINE = 23 1 2 3 4 5 6

1 NET PROFIT BEFORE TAX AVG MTH 105,347 362,108 316,910 530,555 230,750 191,722 248,5212 NET PROFIT % SALES AVG MTH 5.50 4.21 3.66 4.97 2.34 3.35 3.563 NET PROFIT % GROSS AVG MTH 28.92 24.92 25.51 27.76 21.34 20.31 21.774 NET PROFIT BEFORE TAX THIS MTH 129,038 274,845 176,233 565,630 309,481 288,523 273,2755 NET PROFIT % GROSS THIS MTH 30.65 20.73 18.15 29.62 26.49 25.08 23.706 VOLUME ANALYSIS7 TOTAL SALES AVG MTH 1,914,816 8,603,526 8,662,804 10,666,095 9,845,734 5,715,605 6,869,6258 TOTAL NEW UNITS SOLD AVG MTH 32 139 138 162 197 72 1119 TOTAL SALES THIS MTH 2,191,735 7,727,748 6,290,041 9,032,549 9,280,172 5,506,812 6,188,374

10 TOTAL NEW UNITS SOLD THIS MTH 33 131 96 129 210 62 10011 TOTAL GROSS ANALYSIS12 TOTAL GROSS AVG MTH 364,221 1,453,141 1,242,195 1,911,258 1,081,060 944,123 1,081,08113 GROSS % SALES AVG MTH 19.02 16.89 14.34 17.92 10.98 16.52 16.4114 TOTAL GROSS THIS MTH 421,058 1,325,862 970,788 1,909,380 1,168,160 1,150,395 1,091,75215 GROSS % SALES THIS MTH 19.21 17.16 15.43 21.14 12.59 20.89 17.9216 TOTAL EXPENSE ANALYSIS17 TOTAL EXPENSES AVG MTH 251,933 1,040,514 890,285 1,386,448 817,801 727,311 812,33418 EXPENSE % GROSS AVG MTH 69.17 71.60 71.67 72.54 75.65 77.04 76.8019 TOTAL EXPENSES THIS MTH 257,522 1,012,810 771,483 1,328,196 837,543 813,116 794,92920 EXPENSE % GROSS THIS MTH 61.16 76.39 79.47 69.56 71.70 70.68 74.5721 OPERATING PROFIT ANALYSIS22 OPERATING PROFIT AVG MTH 112,289 412,627 351,910 524,810 263,259 216,812 268,74723 ** OPER PROFIT % GROSS AVG MTH *KEY* ** 30.83 28.40 28.33 27.46 24.35 22.96 23.20

24 OPERATING PROFIT THIS MTH 163,536 313,052 199,305 581,184 330,617 337,279 296,82325 OPERATING PROFIT % GROSS MTH 38.84 23.61 20.53 30.44 28.30 29.32 25.4326 NET ADDITIONS & DEDUCTIONS AVG MTH -6,942 -50,519 -35,000 5,745 -32,509 -25,090 -20,22627 NET ADDITIONS & DEDUCTIONS % GROSS -1.91 -3.48 -2.82 0.30 -3.01 -2.66 -1.4328 NET ADDS & DEDUCTS THIS MTH -34,498 -38,205 -23,072 -15,556 -21,136 -48,757 -23,54829 NET PROFIT BEFORE TAXES AVG MTH 105,347 362,108 316,910 530,555 230,750 191,722 248,52130 NET PROFIT B. TAX % GROSS AVG MTH 28.92 24.92 25.51 27.76 21.34 20.31 21.7731 NET PROFIT BEFORE TAX THIS MTH 129,038 274,845 176,233 565,630 309,481 288,523 273,27532 NET PROFIT B. TAX % GROSS THIS MTH 30.65 20.73 18.15 29.62 26.49 25.08 23.7033 NET PROFIT PREVIOUS YEAR34 NET PROFIT THIS YEAR 842,774 2,896,860 2,535,283 4,244,442 1,845,998 1,533,774 1,988,17135 NET PROFIT PREVIOUS YEAR 124,411 1,845,219 3,421,047 4,542,054 116,152 1,872,867 1,905,82736 NET PROFIT +/- PREVIOUS YEAR 718,363 1,051,641 -885,764 -297,612 1,729,846 -339,093 82,34337 NET PROFIT % CHANGE 577.41 56.99 -25.89 -6.55 1489.30 -18.11 190.64

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District Manager Business Management Composite

DSM Dealers in one book and one

page!

Select Dealer or “911” Group◦ Struggling dealer group◦ Dealer and DSM attend three meetings a year for two-days◦ Department managers to attend◦ Nurse dealerships back to health◦ Return to 20-Group◦ Microsoft Live Web Conferences between sessions

Manufacturer Business Management Composite◦ Individual business management composites for non 20-Group dealerships◦ Monthly composite ◦ Benchmarking tool◦ This tool is used for manufacturer training


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Chrysler Marketing Investment Division Chrysler New Dealer Conference General Motors Service Consulting College Ford Dealer Development General Motors Motors Holdings Ford, General Motors, Hyundai, Chrysler and Honda

District Manager Training Nissan Canada Service & Parts Training Chrysler Sons and Daughters Training Advanced Service Performance – Levels 1 – 6 Sea Ray Boats, Harley Davidson Mazda, Chrysler, BMW data processing/composites


Steven Landry – Vice President Chrysler Corporation Brent Dewar – Senior Vice President GM NOA Bernie Clement – Past Vice President Chrysler Canada Reid Bigland – President Chrysler Canada Mike Schwartz – President Mikes Famous Harley

Davidson Pat Priestner – CEO ACA Pat McEachern – Automotive Performance Group


We run the strongest business management programs in North America and are not afraid to challenge the dealer in order to improve his/her customer retention and profitability.

Thank You!

(804) [email protected]

Consept 20 Group Presentation

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Transcript of Consept 20 Group Presentation