Reynolds and Reynolds conducted a study on dealerships that switched from a competing DMS provider to its retail management system and found significant growth in nearly every area.
In a news release, the company said overall gross profits jumped an average of 63.3% at dealerships that switched to its system. For example, F&I gross per new unit sold was up an average of 26.9%, and used increased an average of 37.2%.
“The decision to change DMS providers is never made lightly,” said Chris Walsh, President of Reynolds, in a statement. “We work with our clients on an individual basis to help them better understand our products and the best ways to use them to reach their goals.”
The report also shows that service departments saw improvements in all areas: service department gross increased an average of 49.3%; gross profit per customer pay RO jumped an average of 30.3%; and the effective labour rate was up an average of 17.3%. Total customer pay hours also increased an average of 19.4%.
As for parts department gross, Reynolds said this increased an average of 40.8%.
“Our customers’ success is what drives us. Everything we do from product development to support and utilization is focused on helping our customers succeed,” said Walsh. “We couldn’t be more proud of them and the results they have achieved.”
The full report is available here.
