The Reynolds and Reynolds Company recently released a report studying showing the benefits of its Retail Management System on a dealership’s profitability after switching from a competing DMS provider.
The report, titled Switching to Reynolds: Creating Sustainable Profitability, highlighted while margins were boosted by the pandemic and forces outside of the dealership’s control, added value to the customer can drive sustained profitability as the market normalizes to pre-pandemic paradigms. Notably, the report explores the performance impact of the Reynolds Retail Management System in dealerships that converted to Reynolds from a competing DMS.
Notably, the report states that overall gross profits increased an average of 63.3 percent at dealerships that switched to Reynolds.
Making the Switch to Reynolds
Company officials noted the report shows dealerships switching to their product saw significant increases in profitability beyond the front-end of a sale.
For Chris Walsh, president of Reynolds, he said the decision to change DMS providers is never made lightly but the results they are sharing show it is worth it.
“That’s why our customers’ success is at the forefront of our efforts every single day, especially as they transition to our system,” said Walsh in a statement with the release of the report. “We work with our clients on an individual basis to help them better understand our products and the best ways to use them to reach their goals.”
Key Metrics
The report focuses on areas of added value in finance, aftermarket products, and fixed operations. Key results shared by Reynolds
- F&I Gross Per New Unit Sold increased an average of 26.9 percent;
- F&I Gross Per Used Unit Sold increased an average of 37.2 percent;
- Service Department Gross increased an average of 49.3 percent;
- Gross Profit per customer pay RO increased an average of 30.3 percent;
- Effective Labor Rate increased an average of 17.3 percent; and
- Total customer pay hours increased an average of 19.4 percent.
Additionally, parts sales and grosses have increased, with gross increasing an average of 40.8 percent for that department
“Our customers’ success is what drives us. Everything we do from product development to support and utilization is focused on helping our customers succeed,” concluded Walsh. “We couldn’t be more proud of them and the results they have achieved.”
