Auto Dealer Monthly, Q4 2020

32 auto dealer today Q4 2020 Brent Tally is the founder and president of TallyCM His team provides owners representation and general construction management services for the automotive industry F i x e d O p s R By Brent Tally Although there are many reasons to retain an owners representation firm creating a facility that is aligned with your business vision will provide a newfound motivation for your team and will enhance your customers experience TO HIRE AN OWNERS REP Rome was not built in a day and neither was your dealership or any of your other facilities for that matter Whether you are contemplating a completely new build a factory supported re imaging project or a service facility improvement it is critical that your efforts are guided by someone who can provide an unbiased opinion that is grounded in their automotive construction expertise 1Magnitude of Construction It is estimated that a new dealership build will have over 2000 very complex construction steps and decisions throughout the pre planning design construction and post construction phases To add to the complexity of the process the project will have many stakeholders Whether it is the general contractor architectural firm municipality or the factory they all have different goals Utilizing a team that has subject matter expertise in the construction process and experience with maintaining the demands of each stakeholder is a proven method to lower construction costs and keep a project on time 2Owners Advocate and Buffer Dealer principals and their company are easy targets Not because their name is on the building but because of the unique nature of the automotive business and the publics perception of the car sales process Many vendors and supporting firms feel that dealerships have a magic Xerox machine that prints money We all know that this is not the case According to NADA the average dealership posts a 175 return on sales Having a third party firm vet outside bids and effectively negotiate with local providers will allow the dealer principal and GM to stay out of the process This buffer effect is also important for the sensitive discussions dealership principals may need to have with their factory rep When researching which owners rep firm to partner with learn how many different factory design programs they have implemented and how frequently they do them Inquire about their reputation with your factory representative 3Central Point of Accountability Establishing one point of contact for the dealer principal will allow for a higher level of accountability All too often with large construction projects there are too many cooks in the kitchen This aspect in the automotive world is made even more complex if too many family members are involved with a large project When researching an owners rep firm look for a firm that has a track record of taking the lead from day one of the project and is there as a valuable partner throughout the end Soliciting references from previous dealer principals and GMs will help your company find the correct owners rep 4Time is Money As a busy dealer principal or GM time is the one resource you cannot afford wasting To quantify the cost of your time simply take your year end earnings and divide it by 2500 work hours worked in a year Your ability to view your time as a resource is critical Ask yourself if one hour of time is better spent reviewing factory approved flooring tile schemes and sourcing it out for local bids or developing the sales and service team Spend your time and energy on your business of selling cars When retaining an owners rep firm ensure they provide detailed project updates This consistent process will keep you and your team informed and it will save you time 5Cost Equated to Savings Whether it is an incentive for your sales team a new direct mail campaign enhanced sales training or any other initiative that will drive sales many dealer principals can draw the return on their investment back to the cost of the associated initiative Retaining an owners rep firm will allow you and your auto group to forecast a ROI on project completion dates number of project change orders and overall project spend vs project forecast When retaining an owners rep firm it is critical that they establish project saving goals and project time line goals Your ability to focus on your core business during a hectic a construction schedule may be the difference in being profitable or not Creating a facility that is aligned with your business vision will provide a newfound motivation for your team and will enhance your customers experience REASONS 5