Overland Park, Kan. ― NCM Associates, a leading provider of retail automotive 20 Group and operations consulting services, and the originator of the NCM Benchmark® for Success program for automobile dealers, today announced that Rodgers Chevrolet has made substantial operating improvements and increased its Fixed Operations net profits by 59% since beginning the Profit Correction Meeting Program under the guidance of NCM Associates.

Pamela Rodgers, owner of Rodgers Chevrolet, uses precise multi-tasking skills and a multi-prong business approach to running her Michigan automotive dealership.  Along with the implementation of best practices and holding staff accountable for results, the dealership has seen a 59% increase in service department profitability and a 116% increase in the store’s overall net profit.

Pamela Rodgers has been a General Motors dealer in Michigan since 1993. Her first Chevrolet dealership was in Flat Rock and her current location is in Woodhaven.  With an MBA in Finance from Duke University, she knows firsthand how important fiscal discipline is in running a successful business. When the industry hit the wall in 2009 Pamela went looking for resources to help improve efficiencies and build her network. The solution was to join an NCM^® 20 Group.

“Attending 20 Group meetings provides incredible insights on managing the business process and helps keep me at the top of my game,” Pamela said.  This has proven out in her results; as of June 2011 the store’s net profit was up 116% Year over Year (YOY) and in the new car department profit was up 214.8% with new unit sales up 19.5% YOY.

In addition to her 20 Group involvement, Rodgers enlisted the support of the NCM Consulting division.  “We have implemented the NCM Profit Correction Meeting Program and the management team enthusiastically bought into the program once they saw how it can improve their departmental profits.  I personally am excited about this initiative and can see great benefits for our store,” Rodgers said.

As part of the program an NCM retail coach meets regularly with the entire management team and thoroughly reviews the P&L for every department. There are specific goals and targets to achieve and those are also reviewed at the meetings.  Coaching is offered to improve performance, identify issues and to keep everyone on track. The NCM Benchmark^® data is critical, “You can’t manage what you can’t measure. We constantly look at the numbers,” Rodgers said.

Managing expenses is also critical, but when it comes to customer touch points they maintain a top tier level of service. They also examine technology, marketing and advertising costs, and have developed a strategic approach to business development.  Not surprisingly they focus on retaining existing customers and have reached out to orphan customers from areas where GM dealers closed their doors.

For Rodgers Chevrolet, the Fixed Operations area is the engine driving profitability. In this area Rodgers Chevrolet is showing a profit increase of almost 60% since the beginning of the year in Service and a 97% increase in Parts and Accessories.  Service Advisors follow a solid process for each transaction, beginning with greeting the customer by name and doing a thorough walk-around of the vehicle in the service lane.  As a result customer pay repair orders are an integral part of the dealership’s Fixed Ops profits.

The focus on process carries over into the sales area, too. The pre-owned department is selective in the units they acquire, and once a unit hits 60 days on the lot it gets an “all eyes on” look to determine the course of action to move the unit via wholesale or other channels.  Management also keeps a close watch on the new vehicle inventory to determine which units move quickly, where they need some additional marketing promotions, and what options they have when ordering new units. Watching these metrics and using NCM Benchmark data from comparable dealers in similar markets helped the new car department profit increase 214.8% with new unit sales up 19.5% YOY.

You don’t get results like these without a solid team behind each area of the dealership.  Rodgers Chevrolet works hard to find and hire the right people.  And since women influence over 70% of vehicle purchases, Rodgers Chevrolet makes sure women are part of their team.  According to Rodgers, people are the key to the operation. “We can teach them abilities, we can’t teach them willingness,” she said.

About NCM Associates, Inc.

NCM Associates, Inc. is the originator of the automotive industry 20 Group peer collaboration process and has been providing dealership Benchmark^®analytics, Education and Retail Operations Consulting services to the industry since 1947. Located in Overland Park, KS, NCM provides a robust suite of services designed to drive dealership profitability using its proven, operations-focused Benchmark for Success program with new and pre-owned U.S. automotive dealerships, as well as with businesses in more than 20 other industries. NCM is proud to be 100% employee owned.  For more information about NCM Associates, visit www.ncm20.com or call 800.756.2620.