الوصف
Here's a number that should change how you look at every trade on your lot.
$3,500.
That's the floor. The worst-case profit Rob Dell assumes on every single trade, even if the front end makes nothing at all..
Most dealers are running a single variable equation. Front end gross minus reconditioning cost equals decision. Buy or pass.
Rob assumes zero on the front end and still counts $3,500, because that trade is about to flow through service, through parts, into finance, and close to half the time, turn into another trade down the line.
And here's the interesting part.
Rob's not guessing this number, he pulls the actual data on what that year, model, and mileage is transacting at in his market right now, then works backward to figure out how far under it he needs to buy for the whole deal to pencil.
The front end number was never the ceiling. It's the bonus on top of the deal.
If you're still scoring trades on front end gross alone, run this on your last ten and see what changes.
Full conversation with Rob Dell, VP at Bob Ruth Ford, live now.