4. Negotiate Warranty Reimbursement Rates It’s important to regularly review and negotiate warranty reimbursement rates with manufacturers. West Virginia franchise laws are strong in this area, but manufacturers will push back. Know the laws that protect your rights and know your manufacturers’ policies. Additionally, continuously evaluate your customer labor rates to ensure they remain competitive while still protecting your profitability. 5. Implement a Credit Card Surcharge One often-overlooked way to improve profitability is by implementing a credit card surcharge. This can help recover the processing fees associated with accepting card payments. However, make sure to comply with all applicable laws. You cannot charge customers more than the processing fee itself, and you must clearly disclose the surcharge before the transaction is completed. 6. Leverage Your 20 Group Throughout my career, I’ve seen the positive impact of sharing best practices among dealerships. Being part of a 20 Group — a group of dealership owners and managers who meet regularly to share experiences and insights — provides invaluable opportunities to learn from others. Use your 20 Group to exchange ideas on fixed operations, gain new perspectives and learn from both successes and mistakes. Remember, all hope of maintaining profits is not lost. By implementing best practices in fixed operations, dealerships can still boost their bottom line and maintain profitability. Take a look at the strategies just discussed and determine which can be implemented in your dealership today. Tasha Sinclair, CPA/ABV, is a principal of Tetrick & Bartlett PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 2002. Tetrick & Bartlett PLLC currently serves over 50 dealers in West Virginia, Virginia, Ohio and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Tasha can be reached at tsinclair@tb.cpa or (304) 624-5564. It's easy to donate your car, truck, van, or fleet vehicles and help a West Virginia family get back on the road to work. GOOD NEWS MOUNTAINEER GARAGE GoodNewsMountaineerGarage.com 304.344.8445 1.866.Givecar The program is being presented with financial assistance as a grant from the West Virginia Department of Health and Human Resources registered with the West Virginia Secretary of State's Office. GOOD NEWS MOUNTAINEER GARAGE GoodNewsMountaineerGarage.com 304.344.8445 1.866.GIVECAR 1.866.448.3227 The program is being presented with financial assistance as a grant from the West Virginia Department of Health and Human Resources registered with the West Virginia Secretary of State’s Office. CHARLESTON I MASONTOWN WVADA NEWS 23
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