Report Shows Significant Dealership Growth in Nearly Every Area After Switching to Reynolds

The study looks at dealerships that switched from a competing DMS provider and have since been using Reynolds Retail Management System.

The Reynolds and Reynolds Company released today its latest report studying the impact of its Retail Management System on a dealership's profitability after switching from a competing DMS provider.

The report points out that while margins were boosted greatly by the pandemic and forces outside of the dealership's control, added value to the customer can drive sustained profitability as the market normalizes to pre-pandemic paradigms.

Specifically, the report explores the performance impact of the Reynolds Retail Management System in dealerships that converted to Reynolds from a competing DMS.

"The decision to change DMS providers is never made lightly. That's why our customers' success is at the forefront of our efforts every single day, especially as they transition to our system," said Chris Walsh, president of Reynolds. "We work with our clients on an individual basis to help them better understand our products and the best ways to use them to reach their goals."

The report shows dealerships switching to Reynolds saw significant increases in profitability beyond the front-end of a sale. It focuses on areas of added value in finance, aftermarket products, and fixed operations.

Key results include:

• Overall gross profits increased an average of 63.3% at dealerships that switched to Reynolds.
• F&I gross increased.
  • F&I Gross Per New Unit Sold increased an average of 26.9%.
  • F&I Gross Per Used Unit Sold increased an average of 37.2%.
• Service departments saw significant improvements in all areas.
  • Service Department Gross increased an average of 49.3%.
  • Gross Profit per customer pay RO increased an average of 30.3%.
  • Effective Labor Rate increased an average of 17.3%.
  • Total customer pay hours increased an average of 19.4%.
• Parts sales and grosses have also increased.
  • Parts Department Gross increased an average of 40.8%.

Additionally, the report includes interactive calculators that can determine what profitability could look like when achieving average results.

"Our customers' success is what drives us. Everything we do from product development to support and utilization is focused on helping our customers succeed," concluded Walsh. "We couldn't be more proud of them and the results they have achieved."

The full report can be found here.

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