The Advantage of Workflow Management in Reconditioning

On any given day, my business conversations typically focus in on one of three topics: dealers who are ready to give up on recon spreadsheets and the extra managerial oversight; dealers not ready to admit they have a recon problem; and finally, dealers who have

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Holding Cost Killing Your Gross?

Vehicle reconditioning is an essential process for every used car department. It not only gets vehicles ready for consumers’ eyeballs, but when it gets them front line ready fast, it can mean more gross on every sale. Every used car manager knows this intuitively. I’m

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Reconditioning – A New Bastion of Hope – The Future is Now

Having met with dealers at NADA, I’m reminded of Dale Pollak’s 2010 article, “Reconditioning – The Last Bastion of Old School Management.” While this is still generally true, there are finally straightforward solutions and verifiable success stories that have remedied this situation. However, getting reconditioning

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Recon Workflow Requires Data Driven Recon Processes

  In our first of three articles discussing how to drive time and cost wastes out of the reconditioning process, we took a look at how lean manufacturing workflow principles when applied to automotive reconditioning, improves outcomes. That article outlined the fundamental processes for how

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Metrics -- hard performance data -- is the road map to flowing gross from your recon to your bottom line.

Flow Gross From Recon to Your Bottom Line

If you still run your recon department on “gut feel” and not metrics, you’re losing money. Metrics — hard performance data — is the road map to flowing gross from your recon to your bottom line. Manage by the facts and you’ll flow significant gross to

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Margin Compression; A leaking faucet

When I first got into the car business in the late 80’s, the term Margin Compression was something relating to industries other than Auto. Back in those days, a dealer normally had a 60-90 day period to maximize their gross profit. Unfortunately those days are

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End the Blame Game in Recon

Blame – assign responsibility for a fault or wrong. Most dealership personnel will associate the term Reconditioning with Time-to-Line, although TTL involves much more than the normal “mechanical and cosmetic” processes. When I was in the dealership, the majority of the reconditioning of a used vehicle

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Reconditioning Time Testing

Dealers who have the most efficient reconditioning time consistently average three to five days from recon start to front line. They also know where every car is at all times because every step has a clear owner who is connected to it through their mobile

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