Today on CBT News, anchor Jim Fitzpatrick is joined by Dennis McGinn, founder and Chief Executive Officer of Rapid Recon. Established in 2010, Rapid Recon is trusted by over 2,000 dealerships for improved vehicle reconditioning and dealership profitability. McGinn has worked with countless dealers over the years by helping them decrease their time to line and sell cars faster.
Due to the outbreak of the Coronavirus, inventory scarcity caused volumes to drop 15 to 20%, however, some automotive analysts believe that levels are starting to return to normal. From McGinn’s perspective, some dealers are still relying on this scarcity and enjoying higher grosses. Other dealers report that the front-end gross is gone, which means they have to shift their focus to the customer experience.
McGinn is focused on the long game. he says that front-end grosses are steadily declining and margin compression will continue to come back. In order to help dealers capture the sense of urgency created by the pandemic, it’s important to realize that the ‘time to line’ in vehicle reconditioning is now directly tied to the gross per car.
The important thing that McGinn sees is that time-to-line is now a key performance indicator. He says, “If you’re going to sustain [perfromance], you need to make sure your workflow, your processes are in place, and your people are appropriately incentivized so that they all do their part.”
Once every person feels like they are part of the solution, then you can dial the processes. While Rapid Recon’s solutions create efficiency, accountability, and boost the bottom-line, McGinn says that in order to maximize its effectiveness, Rapid Recon has to be integrated into the dealership’s culture. Recon is now your main profit driver and the entire dealership needs to get on board, not just the recon manager.
Did you enjoy this interview with recon expert Dennis McGinn? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at firstname.lastname@example.org.