Mazda eyes 2010 profits
December 30th, 2009 by Richard Aucock
MAZDA is responding to warnings 2010 could be a tough year by helping car dealers maximise profits.
Aftersales director Steve Jellis says his area of operation is a strong candidate to make money for dealers.
Up to HALF a dealer’s profit can come from aftersales, he says!
‘Mazda has a relatively high proportion of sales to private owners, whose loyalty to the dealer network’s service operations provides a solid foundation for aftersales income.’
Why is it so good? ‘It relies on the cars already in circulation and not new sales, so when sales become weak, it keeps them going.’ That’s why Mazda’s 151 UK dealers reckon service and parts typically contributed 50 percent of gross profits in 2009.
Simply put, said Jellis, ‘service and parts contribute the same amount of profit for the dealers as they get from new and used car sales.’
Mazda is now running a pilot programme to help prove the benefits of aftersales. The trial involves a sole franchise dealer and one of Mazda’s 14 nationwide business managers.
It aims, he says, ‘to look at the dealer holistically rather than focusing on sales charts.
‘Dealers have a duty of care to their customers but that responsibility is also a revenue opportunity.’
Tags: aftersales, mazda