In 2020, we plan to do $17M in Gross Sales. In 2020, we plan to dismantle 2,000 vehicles. In 2020, we plan to turn a 14.7% Net Profit. Each of these are Outcome Goals. Outcome Goals are very hard to predict. You should be focusing on Input Goals, not Outcome Goals. What is the difference? We all know that in-stock sales are directly proportional to vehicle purchases. As a matter of fact, there is a known ratio between the two. For the average recycler, the Cost of Goods for In-Stock Sales is roughly 43%. This number could range from 40% to 50%, but we will use the average of 43% for this example. This is a facility that probably focuses on a 2012-2013 model year for its average year purchased. For this example, we will also assume that this facility is 50% In-Stock Sales, 40% Brokered Sales, and about 10% non-part revenue. So, if this site sets a goal of $17M in Gross Sales for 2020, that would mean that In-Stock sales would need to be $8.5M, which is 50% of the $17M Goal. Stay...

Do you always seem to run out of money before all of your bills are paid each month? Do you fluctuate buying cars from month to month based on cash flow on the day of the auction? Does payroll dictate what types of cars you buy each week? You are not alone. Many facilities face these exact issues every week, if not every day. The question becomes: What can you do to help mitigate these issues? These issues are symptoms of a larger issue: Cash Management. As cars become more expensive, customers become pickier (is that possible?), and competition from the internet forces us to turn a lower gross profit per car than ever before, we must become keenly aware of our cost of goods, gross sales, returns, fixed expenses, variable expenses, and profit in order to stay in the game. But, what is the secret sauce? What is the secret mixture of cars that produces the highest net yield? These questions have different answers based on which facility is answering them. However, we all should...