Department Expenses % GP

In order to maximize your Dealership or Department profitability you must control your expenses.  As a guide you should try and contain your total expenses to a maximum of 85% of your Gross Profit (GP).  The 85% breaks down like this:

  • Selling Expenses – Max 20% of GP
  • Employment Expenses – Max 40% of GP
  • Semi-Fixed Expenses – Max 10% of GP
  • Fixed Expenses – Max 15% of GP

If you want to know more, expense control is covered in the Operations & Profit Maximization Course.  Click here to check it out…

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