Annualised Hours Sold ÷ Number of Vehicles in Parc
Guideline: Own Strategy
Description:
This KPI is very useful for assessing your current performance in Hours Sold against your fellow dealers or your total market potential.
Keep in mind that this statistic is utilising every vehicle in the parc and if you are assessing a 10-year parc some of those vehicles may no longer be in your area or even in existence.
You may also wish to consider who else is registering vehicles within your territory it could be that you have a sizable fleet that is distorting your vehicle parc. You also have to ask yourself the question about the age profile of the vehicles that your dealership attracts.
Example:
A) Annual hours sold = 22,752 B) Number of vehicles in parc = 7,584 C) Hours sold per parc vehicle = 3 (A ÷ B)
Discussion:
Many financial reports show the statistic averaged over the whole vehicle parc, however your franchise manufacturer should be able to provide you with your parc data on a year-by-year basis, and in some cases on a model-by-model basis too. This will provide you with a more realistic and accurate figure with which to measure your territory penetration.