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This profitable business ideas video came from the FastWebFormula3 recordings.
Profit from valuable business ideas
Transcription:
I went into my garage and I pulled out some boxes from 1995 through to 2007 or 2008, and I had a look at what was it that I was doing to take these motor dealerships from a loss to a profit. Some of them were losing a couple of million dollars a year, and by the time I finished with them after 3 years, they were making a profit of a million dollars a year. So we’re talking about more than a $2 million dollar profit turnaround on the bottom line. The funny thing is when I implemented the same things that I implemented in that business to my own business, in the last 12 months, I’ve generated more profit for my business than my entire old dealership makes in a year. Is that cool or what? Would you like to learn these things?
One thing I noticed about a dealership is that they’re sort of broken into silos. They have the new car department, the used car department, the parts department, the finance department. As the general manager, I was responsible for all of these departments, and it actually fascinated me how isolated they were. They really were operating without any common denominator and I thought that was silly, so I observed this whole philosophy – I thought what about if we just had one customer, if that customer was a dealership customer, not a service customer or a parts’ customer? Because I would actually notice over time that new car buyers would finance their car so now they are on the new car and the finance database. Some people come up for their lease renewal but then they come in and buy a new car instead. Then you have all these sort of cross-pollinations of departments and before you know it, the customer from one area is dealing with another area. And I literally had people come in to buy a new petrol cap and I could turn that into a brand new Mercedes-Benz sale, because I understood this person has already got a Mercedes-Benz and they’ve come in to buy a petrol cap because the old one’s broken or old. Therefore, they have a problem I must solve and the only logical solution is to buy a brand new Mercedes-Benz.
What I did is as the general manager is I started teaching each department head that they could go and talk to the other department manager. I started having a breakfast meeting with the managers and we had this sort of cross-pollination, if you like. And the whole idea when you strip it all back, and it might take me a few minutes with the slides that I set up, but when you strip it all back, a dealership is essentially one customer hub. And what I did with my own internet business is I’ve rebuilt that, but I’ve put the focus on the most important thing. If you only write one thing down over the next few days, make your business customer-centric and make sure you’re after a lifetime customer because this is what’s so wrong with the majority of internet marketers – they are tacticians, they are taking from people without adding any value and they’re not generating lifetime customers. In fact, they’re generating a customer that won’t come back.
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