A Bonanza Seeking Investors - AutoSuccessOnline

A Bonanza Seeking Investors

T2L is “time to line,” a profit-improvement strategy built on a complete cloud-based platform for managing the time it takes to get used cars from acquisition through reconditioning and to the sales line, or at least to where you know what price to accept to cover recon costs and make money.

If T2L were a widget, investors would line up to grab their share of the profits.
If T2L were a prospecting tool — which it is, of sorts — dealers would be selling more used cars more profitably.
If you’re using T2L at your dealership, you’re in line — and you’re enjoying more successful used car operations.

T2L is “time to line,” a profit-improvement strategy built on a complete cloud-based platform for managing the time it takes to get used cars from acquisition through reconditioning and to the sales line, or at least to where you know what price to accept to cover recon costs and make money.

Dealers using T2L enjoy a $50 return for every dollar spent on this disruptive technology. Disruption often means confusion and a threat to the car business, but T2L instead brings order, flow, accountability and improved efficiency to vehicle reconditioning. These benefits translate into increased used car profits.

A Bonanza-Maker for All Dealers
T2L delivers these results for new-car, used-car, independent and buy-here/pay-here dealers. Now, instead of guesswork and manual tracking tools for “managing” a multi-process, multi-step, ever-changing reconditioning department, dealers practicing T2L get cars through the department in just a few days rather than a week or more.

Auto dealership general managers invested in applying T2L principles to their operations are flowing $20,000 or more a month in unrealized profit to the bottom line for their employers. GMs who “get this” create rosier futures for their employers — and for themselves, as well.

If you are not yet applying rapid reconditioning T2L workflow to your dealership, then you have some serious catching up to do.

Run, Recon, Run
When we first applied workflow and accountability disciplines to vehicle reconditioning nearly a decade ago, dealers learned quickly they must have a measurable and verifiable T2L if they expect to do the job right and pull the profit out of this assembly-line process — the ultimate goal of reconditioning!

With T2L rapid reconditioning giving everyone in the process precise information about where each car is in the recon process — from transport to sold — vehicles no longer get misplaced, lost or otherwise unaccounted for.

The clock on T2L starts when you acquire a vehicle and it stops when that vehicle is front-line ready. GMs who manage T2L to a three-to-seven-day window put fresher inventory on the front line, increase inventory turn and keep everyone involved notified about where every vehicle is in the process.

Bottom line: When asked how fast you are getting cars through recon, what does recon cost the dealership or, “Where’s the F-150 we got in Tuesday?” You’ll know. Exactly. No more guesstimates but only the real facts as directly monitored according to every touchpoint through reconditioning.

Because T2L leverages mobile technology, access to recon workflow data, vehicle status, vehicle location and next steps is always right at hand. Every GM must have a measurable and verifiable T2L as a minimum standard for operating their used car departments.   

Calculate your ROI
When factoring return on investment, cost of tools to achieve that return must be included in that calculation. Here is where T2L investors stand out.

Using T2L, dealers typically shave two or more days from their recon times. Two additional turns on 100 cars at $1,500 gross per vehicle is a gain of $300,000 a year, or $25,000 a month — a tremendous ROI for a monthly T2L workflow software cost of $500.

Where else can you find a $50 return for $1 spent?

Rapid reconditioning principles and practices also contribute to profitable human capital return on investment. The proper workflow model is based on behavioral changes that take accountability head-on by replacing finger pointing with process structuring, so individuals doing the work control their accountability.

This change has created new efficiencies and can establish a culture of inclusion fairness, creating an empowerment shift in the ability of your human capital to prove they are doing the right work well as compared to their peers.

How can any dealership facing today’s margin squeeze, sales disruption models, turnover and other challenges justify running its reconditioning without workflow precision, accountability and results?

Is this reluctance because of the momentary twitch that always occurs when we move out of old practices into new, more efficient ones? Considering the gains involved by applying T2L to reconditioning, what could be more critical or prudent than seeking this bonanza of new profitability and efficiency for your used car operation?

Is it a difficult manager stuck in his or her ways pushing back and disrupting your continuous improvement culture? If so, maybe you have the wrong manager.

Recon has never been glamorous — although this is changing, even as I write this — and it has never gotten much attention from GMs. This is changing, too. T2L helps GMs, fixed operations, used cars — everyone, really — identify, manage and extract a real bonanza of benefits from reconditioning, changing your recon department to a lean, mean, money-generating machine.

Click here to view more solutions from Dennis McGinn and Rapid Recon.

You May Also Like

Are You a Life Learner?

Everyone has a lesson to teach us, whether they intend to or not. It’s up to us to pull out the best lessons from these interactions.

Others are Always Teaching Us — If We’re Open to Receiving Those Lessons

While we spend most of our childhood and often young adulthood in school, those who are “truly successful” — both in their career and in life — understand that we never graduate. They know there will never be a point where they’ve reached their ultimate potential and no longer have anything to learn. They are students for life and will never graduate until their final day.

Connect to What You Expect

Recon workflow software is designed to bring accountability and organization to this chaotic part of your business.

Are You Ready to ROCK in 2023?

It’s time to meet today’s Vehicle Care RockStars, and we are asking you to help get us backstage.

The End is NOT Nigh

Car buyers abandon digital tools when the process gets too complex — easy-to-use ecommerce capabilities are essential.

If It’s Not Broken, Break It

Recon software provides the data to manage and motivate by the numbers.

Other Posts

Your Place with Mike Davis, The Faricy Boys Chrysler Jeep

Dennis McGinn and Mike Davis discuss how staying involved in dealership departments helps to improve processes.

Your Place: Clayton Birtell of Honda of Downtown LA

Dennis McGinn and Clayton Birtell discuss the increased pressure on the fixed ops department to get used cars front line faster.

Top 10 Reinsurance Mistakes Dealers Make (and How to Avoid Them), Part 2

Reinsurance company ownership will help you and your family build personal wealth outside the dealership.

The Most Powerful Skill in Selling

If you can’t listen to what your customer is saying, how do you really know that you’re solving their needs?