Pitcher Partners Automotive - Key performance indicators for automotive retailers
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Pitcher Partners Automotive Key performance indicators for automotive retailers 2017/2018 edition (Luxury and Non-Luxury)
Contents Automotive services 1 Non-luxury edition 2 Luxury edition 4 About Pitcher Partners 6
Automotive services
Welcome to the 2017/2018 Pitcher Partners Automotive Key Performance
Indicators for Australian Automotive Retailers – Non Luxury and Luxury Editions
New vehicle sales The challenges
The 2016 calendar year showed continued growth and Australian Automotive Dealerships will face many
strength in the Australian new car market, with official challenges in the coming years. One such issue is in
sales of approximately 1.178 million units, representing a relation to innovation through increased competition
2% increase on the sales for the 2015 calendar year (1.155 as a result of surging online vehicle sales, with some
million units). This marked the seventh consecutive year in experts predicting the entire vehicle sales transaction
which new car sales exceeded 1 million units. will be transitioned to an online platform in the near
future, with almost 10% of vehicle transactions expected
The Toyota and Mazda manufacturers continue to
to be online by 2019. Dealerships will need to focus
generate the highest sales volumes, with Hyundai,
on business innovation solutions to continue to adapt
Holden and Ford rounding out the top 5 vehicle sales by
with technological development that will impact
manufacturers, and accounting for over 50% of total sales
the relationship between the manufacturer, dealer
in calendar year 2016. However, we have also witnessed
and consumer.
a shift in consumer preferences through increased sales
in SUVs and light commercial vehicles. Remarkably, the Almost on a weekly basis we read about the limited
Toyota Hilux was Australia’s highest selling vehicle in future of retail automotive dealerships with some reports
calendar year 2016, and continues to perform strongly, suggesting they will cease to exist by 2025. However, in
as evidenced through the sale of over 5,400 Toyota Hilux Australia, with the continued interest by private equity
vehicles in June 2017 alone. Further, the Ford Ranger in the industry, it is evident they are seeing sufficient
also had sales in excess of 5,000 units for the month of opportunities in the automotive retailing market.
June 2017. On the back of this, the June 2017 month was Economies of scale will continue to drive consolidation.
considered to be the highest performing month in history,
The business model will need to change with the brick and
with over 134,000 units sold.
click dealership itself being able to match the best high-
street retail experience and with dealerships going beyond
Contrary to current economic conditions and the car sale and into mobility services. In saying that,
predictions, the retail automotive market dealers have always been good at adapting – an innovative
has continued to perform strongly as a car dealer is a future car dealer.
result of the following:
A key issue impacting the future of the automotive
industry is in relation to commission models and
Strong competitiveness within the market,
structures in the context of ASIC’s prohibition of flexible
allowing for consumers to have access to
commission arrangements as announced in March 2017
a greater level of choice and access to high
and effective from 1 September 2018. ASIC’s decision not
quality vehicles.
only means the banning of flex-commissions, but also
imposes restrictions on interest rates and origination fees,
Increased business sales as a result of
giving greater power to lenders. This decision will impact
government tax incentives (i.e. access to
dealership profitability through underlying restrictions on
instant asset write-off provisions) as well as
the sale of products within the F&I departments.
manufacturer product offerings.
Further, automotive dealerships are expected to be
Low interest rates and end of financial year impacted by new accounting standards, more specifically
sales. surrounding revenue recognition (AASB 15) and leases
(AASB 16), which are set to become effective from 2018.
These standards are sure to impact on dealerships’
benchmarking and profitability.
Overall, we expect new vehicle sales to hover around the
1.0 million sales mark for calendar year 2017, in line with
VFACTS forecasts, and these sales to be underpinned
by continued growth in SUV and light commercial
vehicle sales.
The unknown
In our opinion, autonomous driving technology is the
real unknown – will cars drive themselves to our homes,
removing the dealer from the process!
1
Non-Luxury edition
The Big Picture
Dealership Profitability 2017/2018 KPI Gross Contribution 2017/2018 KPI
Net profit % sales 3-3.5% New 36%
Rent % gross 13% Used 18%
Admin & DP salary % gross 9% Front-end 54%
Gross % sales 12-14% Parts 12%
Monthly gross per employee $12,000-$13,000 Service 34%
Fixed absorption (minimum) 55% Back-end 46%
Finance and 20-25% of total gross
insurance income
Vehicle Operation
New Vehicles 2017/2018 KPI Used Vehicles 2017/2018 KPI
Gross profit % 8-10% Gross profit % 12-14%
Gross profit per unit * $2,400-$2,600 Gross per unit $2,500-$2,600
Days’ supply 55-60 Days’ supply 65-70
Unit per sales staff per month 14 Unit per sales staff per month 14
Gross per sales person per month $38,000 Gross per sales person per month $35,000
Advertising per unit $220 Advertising per unit $240
Floor plan per unit $250 Floor plan per unit $160
Salaries & comm. per unit $750 Salaries & comm. per unit $770
Gross ROI 55-65% Used/new ratio 0.5
Aftermarket income per unit $350 Gross ROI 85-90%
* Includes holdback, bonuses and aftermarket Aftermarket income per unit $250
2
Fixed Operations
Parts 2017/2018 KPI Service 2017/2018 KPI
Gross profit % 23-25% Gross profit % total 66-69%
Days’ supply 45-50 Gross profit % labour 76-79%
Monthly gross per staff $18,500-$19,000 Monthly labour gross per tech $12,000-$13,000
$ sales per $ salary $18 Unapplied time % COS 5% max
Gross ROI 180-200% Non-chargeable salaries % gross 23-25%
Fixed absorption (minimum) 55% Back-end 46%
* Apprentices and foreman are weighted to arrive at an Chargeable to non-chargeable 2 to 1
adjusted number of technicians
Labour hours per retail RO 2.0 hours
Technician to service advisor 5 to 1
Parts / labour ratio $0.60
Fixed absorption (minimum) 55%
Finance and Insurance
New Vehicles 2017/2018 KPI Used Vehicles 2017/2018 KPI
Finance penetration 40-45% Finance penetration 40-45%
Income per contract $2,300-$2,500 Income per contract $2,400-$2,600
Finance per retail unit $880 Finance per retail unit $890
Insurance per retail unit $180 Insurance per retail unit $180
F&I income per staff per month $50,000-$55,000
Units retailed per F&I staff 50-55
per month
3
Luxury edition
The Big Picture
Dealership Profitability 2017/2018 KPI Gross Contribution 2017/2018 KPI
Net profit % sales 4-4.5% New 44%
Rent % gross 11% Used 12%
Admin & DP salary % gross 5% Front-end 56%
Gross % sales 13-15% Parts 12%
Monthly gross per employee $11,500-$12,500 Service 32%
Fixed absorption (minimum) 55% Back-end 44%
Finance and 13-15% of total gross
insurance income
Vehicle Operation
Vehicles 2017/2018 KPI Used Vehicles 2017/2018 KPI
Gross profit % 10-12% Gross profit % 12-14%
Gross profit per unit * $4,000-$4,500 Gross per unit $2,500-$3,000
Days’ supply 55-60 Days’ supply 65-70
Unit per sales staff per month 11 Unit per sales staff per month 12-14
Gross per sales person per month $50,000-$55,000 Gross per sales person per month $33,000-$38,000
Advertising per unit $400 Advertising per unit $200
Floor plan per unit $350 Floor plan per unit $150
Salaries & comm. per unit $1,200 Salaries & comm. per unit $800
Gross ROI 65-70% Used / new ratio 0.4
Aftermarket income per unit $350 Gross ROI 75-80%
* Includes holdback, bonuses and aftermarket Aftermarket income per unit $250
4
Fixed Operations
Parts 2017/2018 KPI Service 2017/2018 KPI
Gross profit % 22-26% Gross profit % total 65-70%
Days’ supply 45-55 Gross profit % labour 76%
Monthly gross per staff $20,000-$22,000 Monthly labour gross per tech $13,000-$14,000
$ sales per $ salary $18-$20 Unapplied time % COS 5% max
Gross ROI 200-220% Non-chargeable salaries % gross 30%
* Apprentices and foreman are weighted to arrive Chargeable to non-chargeable 2 to 1
at an adjusted number of technicians
Labour hours per retail RO 2.2 hours
Technician to service advisor 5 to 1
Parts / labour ratio $0.80
Fixed absorption (minimum) 55%
Finance and Insurance
New Vehicles 2017/2018 KPI Used Vehicles 2017/2018 KPI
Finance penetration 33-38% Finance penetration 30-35%
Income per contract $2,200-$2,400 Income per contract $2,150-$2,350
Finance per retail unit $800 Finance per retail unit $800
Insurance per retail unit $170 Insurance per retail unit $180
F&I income per staff per month $35,000-$40,000
Units retailed per F&I staff per 50-55
month
5
About Pitcher Partners
Pitcher Partners is a full service accounting,
auditing and business advisory firm with a strong Pitcher Partners is a
reputation for providing quality advice to privately- national association of
owned, corporate and public organisations. independent firms.
Liability limited by a scheme
In Australia, Pitcher Partners has firms in Adelaide, Brisbane, Melbourne,
approved under Professional
Perth, Sydney and Newcastle. We collaboratively leverage from each other’s
Standards Legislation.
networks and draw on the skills and expertise of 1,000+ staff, in order to
service our clients.
Pitcher Partners is also an independent member of Baker Tilly International,
the eighth largest network in the world by fee income. Our strong relationship
with other Baker Tilly International member firms, particularly in Asia Pacific,
has allowed us to open many doors across borders for our clients.
Our commercial services
to dynamic businesses
Our private wealth services
•
•
Estate Planning
Family Office Management
$3.2bn
Worldwide revenue 2016 (USD)
• Investment Advisory Services
Financial essentials
147
• Philanthropy Services
• Accounting and Business • Succession Planning
Advisory Services • Superannuation Strategies
• Audit, Risk Management • Tax Advice and Compliance
and Assurance • Insurance Countries
• Internal Audit
30,000+
• Recovery, Turnarounds
Industry specialisations
and Insolvency • Automotive
• Tax advice and Compliance • Education
• Retail
Partners and staff globally
Planning and growth • Professional services
100+
• Health and aged care
• Business Consulting
• Manufacturing
and Commercial Advice
• Not-for-Profit
• Business Performance Improvement
• Property and construction
• Business Structuring
• Government and the public sector Partners nationwide
• Corporate Finance
• Agriculture
1,200+
• Corporate Governance
• Food and beverage
• International Business Advisory
• Hospitality
• Investment Advisory Services
• Succession Planning
• Superannuation Services People nationally
• Tax Consulting
• Technology and IT Consulting
• Valuations
Sydney
240+
Total Sydney staff
29
Sydney partners
6
Firm Pitcher Partners has the
resources and depth of
expertise of a major firm,
locations but with a smaller firm
feel. We give our clients the
highest level of personal
service and attention.
That’s the difference.
MELBOURNE
SYDNEY
PERTH
ADEL AIDE
BRISBANE
NEWCASTLE
NE R
W EA
PAR EY
TN ER OF TH
Finalists – AFR Top Firm of the Year Accounting Student Professional Executive of the Year Accountants Daily New Partner of the
Graduate Employer Awards – Less than $1bn of the Year – Arlen Development – Rob Southwell, Excellence Award – Year – Dean Love,
(less than 5,000 employees) revenue Dabinett, Adelaide Program of the Year Sydney Rob Southwell, Sydney Melbourne
Finalist – 2017 Financial Review Client
Choice Awards Best Accounting Firm
(Rev $50m - $500m)
Winner – 2017 Financial Review
Client Choice Awards Best Provider to
Manufacturing, Retail and Wholesaling
Winner – Network of the Year – in the Winner – 2016 Acquisition International M&A Awards Best
Business Leader Finalist – Rob Southwell – 2016 International Accounting Bulletin Mid-Market Financial Advisory Firm - Australia & Recognised
2017 Sydney City Regional Business Awards and the Accountant Awards Leader in Acquisition Growth Strategy - Australia
7Our global
Baker Tilly International is one of the world’s leading
networks of independently owned and managed
accountancy and business advisory firms united by a
commitment to provide exceptional client service.
reach
Every day, more than 30,000 people in 147 countries share experiences and
expertise to help privately held businesses and public interest entities meet
challenges and proactively respond to opportunities. International capability
and global consistency of service are central to the way we work.
13
North America
Firms
18
Middle East and
African Firms
25
Global
Experts across a wide range of
industry and business sectors,
each Baker Tilly International
member firm combines high
quality services and in-depth
local knowledge.
126 independent firms come Latin America
together across four geographic Firms
areas. Sharing knowledge
and resources, our business
approach brings together the
power of the global network to
deliver exceptional results to
clients globally.
8Key
50
European Firms
20
Asia Pacific Firms
Local
Pitcher Partners is an independent member of
Baker Tilly International. Our strong relationship
with other Baker Tilly International member firms,
particularly in Asia Pacific, has allowed us to open
many doors across borders for our clients.
9Get in
touch...
John Gavljak
Partner – Automotive
+61 2 8236 7759
john.gavljak@pitcher.com.au
John Taouil
Manager – Automotive
+61 2 8236 7739
john.taouil@pitcher.com.au
MELBOURNE SYDNEY PERTH PITCHER.COM.AU
+61 3 8610 5000 +61 2 9221 2099 +61 8 9322 2022
partners@pitcher.com.au partners@pitcher-nsw.com.au partners@pitcher-wa.com.au
ADEL AIDE BRISBANE NEWCASTLE Pitcher Partners is an association of
independent firms. Liability limited
+61 8 8179 2800 +61 7 3222 8444 +61 2 4911 2000 by a scheme approved under
partners@pitcher-sa.com.au partners@pitcherpartners.com.au newcastle@pitcher.com.au Professional Standards Legislation.
Industry Statement_KPIs for Automotive Retailers 2017_2018You can also read
