Why should I measure this?
This indicator shows the number of vehicles sold. It can be analyzed against the dealership’s defined target, compared to the previous month, and against the same month from the previous year.
At the second level of this KPI, a more detailed analysis is possible through navigation filters and charts. You can analyze:
- Sales by business unit (New, Used, Fixed Ops, Parts, Services…)
- Sales by origin
- Sales by salesperson
- Sales by model and generic model
Which dashboard is this KPI on?
Managers
What department does it affect?
Vehicles
Measurement frequency
Monthly
Target
Defined by each dealership; it could be a fixed number (e.g., sell 90 vehicles) or a target to achieve a 15% increase compared to the same month of the previous year.
What happens if it is green?
The sales target for the period was achieved.
What happens if it is red?
The sales target was not met.
Improvement Strategies
- Analyze the reasons for lost sales. Identify common causes and implement improvement strategies.
- Review sales targets. They may have been too ambitious.
- Reevaluate the sales incentive policy to boost performance.
- Use a CRM to track opportunities.
- If there were stock issues, coordinate future purchases with the factory and other suppliers.
Relationship with other indicators
This indicator should be supported by the analysis of two other important indicators: ROS (Return on Sales) and the Expense-to-Sales ratio. An increase in the quantity of units sold might be accompanied by a decrease in ROS or an excessive rise in the proportion of expenses relative to sales. For instance, offering significant discounts can boost sales but at the cost of profitability per dollar billed (ROS).
Another reason might be an aggressive advertising campaign that increases the Expense-to-Sales ratio. For example, if the dealership decides to offer free accessories with every vehicle sold, this will result in higher costs.
These examples illustrate that revenue should always be analyzed in a global context.
Formula
Quantity sold in the period
Dealership Management Taken to the Next Level
