Four months ago, Phil Pecoraro threw out the projection of hitting a service gross of $280,000 at the Murdock CDJR in Bountiful, Utah.
The operating partner rejoined Daily Dealer Live this week, telling host Sam D’Arc that the store blew past that milestone with its best month ever in July at more than $300,000.
Driving the news: Back in May, Pecoraro, who acquired the store a year ago, had set the projection at $280,000.
In July, the store did $105,000 in parts business and another $180,000 in service, for a record month.
He noted that parts, especially wholesale parts, have been strong.
Video MPI completion is now at 85%, five points short of the 90% target, with technicians using Meta Ray-Ban glasses to record walkarounds, which the store then integrates with its Tekion platform.
Zooming in: With a focus on maximizing fixed ops opportunities, Pecoraro created an AI-assisted workflow for all repair orders.
An agent flags parts holds, special orders, or anything over promise time to make sure he’s notified.
There’s also an AI agent to send a text to him and the sales manager if a customer texts and the agent can’t answer.
As AI is helping with leads, he points out that there is still value in the human connection with customers, and he makes sure customers are receiving the personalized video through the tool.
“I always say that the general manager is kind of the lube in the gears of the dealership to make sure things get done. My job is to make sure that process gets handled,” Pecoraro said.
Used market: He looks at the used inventory each day, which carries 75 cars in stock.
Their aim is a 30-day turn.
Additionally, they are working to keep the average unit inventory under $30,000.
He also acknowledged the challenges of getting inventory with a lack of lease returns, noting he has seven in the next 45 days.
With the tight inventory and affordability, they are investing in recon to bring less expensive inventory, specifically around $10,000, to customers.
“We’re planning to recon that car, make sure it’s a good car, be transparent with the customer about the issues that it may have, but that’s a real need in our market, and dealers are the best to be able to fill that because we can pivot and drive through that better than anybody else,” Pecoraro said.
Optimistic view: Pecoraro shared his enthusiasm for Stellantis' changes to the marketing covenant, set to take effect later this month, to level the playing field, especially for smaller-market stores like his, which need to close the gap to reach 100 cars per month, up from 72 to 76.
He noted that now stores can’t discount anything below invoice.
The pricing listed on sites will have rebates listed that customers don’t have to qualify for.
Additionally, the covenant outlines that dealers who don’t comply face loss of delivery allowance, DAP funds, tier-one leads, inventory syndication, and removal from the dealer locator after three strikes.
“We'll actually spend more money on advertising, knowing that if I get that customer, they click on my car, I can start working the deal as soon as I get a lead form," Pecoraro said.
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Bottom line: Processes and committed focus on areas of the business have helped Murdock CDJR grow recently.
Pecoraro believes the future with Stellantis is bright and is looking forward to growth in new segments with additional options and opportunities.
“You trust in the partnership you have with the manufacturer, and you just keep grinding," Pecoraro said.
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