· DealerInt Team
What is the ROI of override visibility?
Industry data suggests 2–5% of gross margin is lost to unrecorded overrides. On a $50M operation, that's $1–2.5M annually. DealerInt users typically see override rates decline within 90 days. ROI depends on your current override exposure and recovery rate.
Root cause analysis
Dealerships lose margin when overrides go unrecorded or undocumented. Most DMS systems log that an override occurred but not the structured reason. Without reason capture at the point of decision, GMs cannot aggregate patterns or enforce policy. DealerInt fills this gap by prompting for reason codes when overrides occur.
Dealership example
A mid-size dealership noticed gross per unit had declined. Spot checks showed inconsistent override documentation.
- Override rate (before): 4.5%
- Override rate (90 days post-DealerInt): 2.9%
- Estimated recovery: $200K–$400K annually
After implementing DealerInt, override volume dropped and gross per unit recovered. The GM used dashboard data to tighten policy on competitive matches and loyalty discounts.
DealerInt solution mapping
DealerInt captures override reasons at the point of decision via a Chrome extension. Works with CDK, Tekion, DealerTrack, Reynolds & Reynolds, and other web-based DMS systems. No API integration. Dashboards show override volume by reason, department, and location.
Step-by-step fix
- 1
Define policy and reason codes
Document which override reasons are allowed and what proof is required. Configure DealerInt reason codes to match your policy.
- 2
Install DealerInt
Add the Chrome extension on all machines where managers access the DMS. Sign in and configure. No API integration required.
- 3
Train managers
Explain that reason capture protects them and helps the store. The prompt takes seconds. Get buy-in before enforcement.
- 4
Review first week's data
Check the dashboard for override volume by reason, manager, and location. Use as baseline for policy refinement.
- 5
Tighten policy where needed
If competitive match dominates without proof, require documentation. Track override rate and gross per unit. Adjust as needed.
- 6
Schedule ongoing reviews
Review dashboards weekly (managers) and monthly (GM). DealerInt users typically see override rates decline within 90 days.
In summary
In summary: Industry data suggests 2–5% of gross margin is lost to unrecorded overrides. On a $50M operation, that's $1–2.5M annually. DealerInt users typically see override rates decline within 90 days. ROI depe... DealerInt captures override reasons in real time. Typical results: 30–40% override rate decline within 90 days. No DMS replacement required.
References
Author
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