Four High Priority KPI’s
Four numbers that tell you more about a dealership than a P&L headline ever will.
Sales Mix. What % of gross sales comes from New, Used, Parts and Service? Below 38% from Parts & Service and you can forget hitting 100% Absorption, the math just doesn't work.
Absorption Rate. Parts + Service + gross profit ÷ Fixed Operating Expenses. This is the single best measure for whether a dealer survives a downturn or gets exposed by one. 100% means machine sales revenue becomes growth capital, not life support.
Off-Shelf Parts Fill Rate to Service. The one almost nobody tracks. Pull 3 weeks of repair orders, count how many line items were filled 100% off the shelf first time. Primary line should be 95-96%+. Below that and you're looking at obsolescence problems, poor Stock Status discipline, or a Parts/Service relationship that isn't working.
Sales Conversion Rate. Digital lead to close. An industry report states that dealers are only pursuing 35-40% of digital leads. If true, is a bigger revenue leak than most dealer principals realise actually exists in their own sales process.
None of these are vanity metrics. They're diagnostic. Score well across all four and you're not just having a good year, you've got a management team and a system that will hold up when the market doesn't.
Where do your numbers sit against these four? If you're not sure, that's usually the tell. Drop me a message and I'll walk you through how I use a Dealer Health Scorecard to benchmark against them. I am happy to talk it through over a coffee or a call.
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