Every dollar of expenses reduces your Net Profit by the same amount. Conversely, every dollar of expenses that is reduced increases Net Profits by the same amount. Are you struggling to be profitable? Increase profit by reducing expenses. How can I reduce my expenses without sacrificing quality of service to my customers? Let’s dig into that question and see what can be done. Recurring Bills Each of us have recurring bills that we simply pay out of ‘habit’ each month. I’m talking about bills from you YMS Provider, a third-party software solution, a utility bill, and lease payment, and rental agreement, etc - you get the idea. There are certain bills that get paid each month without reviewing them - simply because of who they are from. It’s time to review these bills. Look for increased fees or increased rates that you did not agree to. Pull out the same bill from 12 months ago - is this year’s bill higher? Did you authorize them to charge you a higher rate? Spend the time, make a ca...

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...