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Franchise stores net 2-5% before taxes on "big" numbers. $20mm yearly rev for a smaller, rural, domestic franchise to multi-billions in yearly rev for a nationw
by koreyb 10y ago
Franchise stores net 2-5% before taxes on "big" numbers. $20mm yearly rev for a smaller, rural, domestic franchise to multi-billions in yearly rev for a nationwide autogroup.
As mentioned, most profit is generated from service and finance.
Both of these cars you purchased are from high volume mfgs. The dealers made holdback money plus the sales count towards yearly tier incentives.
- danans 10y agoElectric vehicles in particular pose a challenge to the service-derived revenue stream due to lower maintenance costs, so much that Audi's US President urged their dealers to focus on selling value-added services like home EV charging station installations to make up for the lower service requirements of their upcoming EVs: https://electrek.co/2017/01/31/audi-dealerships-behind-electric-vehicles/ https://electrek.co/2017/01/31/audi-dealerships-behind-elect...
- koreyb 10y agoMostly true..if you have to support a network of dealerships and can't get 30% gross on each car you sell (TSLA). EV sales are currently less than 1% of total sales volume. But the fastest growing segment.