StrategicSource Blog

Margin compression is very real for most dealerships. As companies continue to consolidate, competition can be reduced, prices go up and a take it or leave it attitude can prevail with some suppliers - giving dealerships even more headaches to contend with.

Expense categories where supplier consolidations have occurred:

Managing your supplier expenses is critical to your profitability.  People can tend to focus their efforts on the “visible” part of an iceberg and neglect to see the dangers of the “invisible”, in this case the size of the iceberg under the water line.  What does the “iceberg principal” have to do with the management of supplier expenses?