Tuesday, March 28 3:30pm - 4:25pm Auto Dealer Day Session: Should Your Dealership Do Retail Rentals In Addition To the Courtesy Transportation Program? Presenters: Angela Margolit and Rob Hano Bluebird Auto Rental Systems
Should Your Dealership Do Retail Rentals Too?
Presenters Angela Margolit President Rob Hano National Sales Manager
But first TURN OFF THOSE PHONES!!
Agenda 1. Why? 2. How? 3. Who can help? 4. Gathering Data 5. Technology
A Little History
Why Brand Your Rental/Loaner Operation? Leverage your existing infrastructure and customer base Cost advantage: shared expenses Customer service advantage: you are in control New source of business: revenue diversification, including the sale of ancillary products (such as fuel, CDW, and upgrades) Create outlet for used vehicles (late model)
How? Run your Operation as a Profit Center Set Pricing based on Utilization & Competition Manage your Fleet Sell Products and Upgrades Prevent and Manage Losses Deliver Top Notch Service
Task List Insurance Contract Terms & Conditions Marketing: All the traditional methods you use for your dealership (Social Media, Radio, TV, Print, Direct Mail, Web)
The Web Web Portals: Brokers, such as CarRentals.com & Kayak Global Distribution Systems (GDSs) Chain Code: A unique 2-character identifier across all channels
Who Can Help? Other Dealers Franchisors Insurance Companies Consultants (CIRAS/Schalberg) Technology: Counter Software, Website Integration
Gathering Data The next few slides have been compiled by Andres Lezcano, one of our fantastic Bluebird Account Managers!
Understand Your Indicators Utilization = Units on Rent / Total Fleet Time & Mileage (T&M) = Base Rate x Days on Rent Daily Dollar Average (DDA) = Revenue / Rental Days Revenue Per Unit (RPU) = Revenue / Avg. Fleet Length of Rental (LOR) = Rental Days / Closed Contracts Yield = Ancillary Revenue / Rental Days No-Shows = (Reservations - Closed Contracts) No-Show Percentage = No-Shows / Total Reservations Revenue Per Transaction (RPT) = Revenue / Closed Contracts
Rental Revenue Operating Revenue Accrued Rental Income Rental Income (T&M) Additional Driver Collision Damage Waiver Personal Accident Insurance Supplemental Liability Insurance Under Age Driver Upgrade Baby Seats Other Revenue Miscellaneous Revenue Income GPS Income Road Side Service Assistance Interest Income
Direct Operating Expenses Vehicle Fuel Expense Tires Washing Supplies Mechanical Repairs and Parts Glass Repairs Depreciation - Shop Equipment Damage Repairs Damage Credits Vehicle Towing Maintenance or Lease Shop Equipment Service Vehicle Expense Preventive Maintenance Fines & Penalties Vehicle Insurance Miscellaneous Expenses Local Shuttling and Tolls Claim Payouts
Sales and Fleet Expenses Sales Expenses Reservation Expense Advertising and Sales Promotion - Local Commissions - Travel Agents Customer Appeasement Online & Other Advertising Fleet Expenses Vehicle Depreciation Vehicle Tags Taxes Inspection Vehicle Lease Expense Gain/Loss on the Sales of Vehicles
Variable & Premise Expenses Variable Expenses Credit Card Commissions System Fees & Royalties Miscellaneous Variable Expense Premise Expense Premise Expense Rent - Fixed Utilities Maintenance of Premises Depreciation - Leasehold Improvements Property Taxes
Personnel and G&A Expenses Personnel Expense Salaries and Wages Employee Benefits Contract Labor Admin Consulting Employee Welfare - Insurance Payroll Service Miscellaneous Personnel Expenses Uniforms and Supplies General & Administrative Office Supplies and Postage Depreciation: Furniture/Fixtures Bank & Credit Card Charges Computer Related Expenses Management Fees Telephone/Communications Meals/Other Travel Donations & Sponsorship Insurance - Non Vehicle Miscellaneous Expense
Leveraging Technology The Rental Software Advantage Computerized Contract Agreement Processing Comprehensive Fleet Management Reservations Planning Data collection for Statistical Analysis Mobile Loaner Solutions Accident Claims Management Reporting capabilities by customer, vehicle status and repair order Customer Record Keeping Repair Order Tracking Posting of daily transactions to accounting at the end of the day DMS Interface Website Interface Signature Pads Credit Card Processing via Chip & PIN devices
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Thank You!