This KPI establishes the average amount of money that you spend on reconditioning each of your used vehicles.
It is very difficult to provide a benchmark for this statistic as dealer standards, specification and price of the vehicles varies considerably.
As with all KPI you need to capture the trend of this statistic if you are to gain control of its direction. Keep in mind that it is only an average of your Reconditioning Costs and something such as an engine or gearbox replacement will have a significant impact on your results.
Example:
A) Reconditioning Costs = R211,200 B) Used Vehicles Sold = 960 C) Reconditioning Costs per Unit = R220 (A ÷ B)
Discussion:
The important thing is to be aware of its trend and the reasons why it is travelling in a given direction as it is influenced by many different factors.
You can keep track of your performance by means of a simple graph that you update monthly, or at the very least, have it included within your Daily Operating Controls.