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CUT, CUT and CUT AGAIN
Recently when I was visiting the Miami area, I spent some time with a good old friend, Alex Falcon. Alex and I met in third grade and continued to be friends through high school, college, best man at our wedding and now into our adult life. Alex is the General Manager of six automobile dealerships in South Florida. In our recent conversation, he explained that his dealerships started feeling the pinch of the recession in July 2008. Alex had his sensors out. He could feel that things were not going right. His gut told him to start looking at expenses as he tried his best to spur sales along with his massive TV and print campaigns.
Alex started looking at line expenses at each of his dealerships. He cut, cut and cut again. He eliminated unnecessary personnel, (kept multi-taskers), cut overhead in his service areas, reduced cost wherever he could, eliminated outsourcing of janitorial services and installed more cost efficient lighting in his lots, garages and showrooms. In January of 2009 Alex had a virtual breakeven and in February made a small profit. He could not believe how efficiently his agencies could run. He reduced overall costs by 35%. He swears he'll never go back to his old business model. Hopefully, the rest of the year will prove to be successful with the use of more wise, miserly tactics. So take some good advise from a good friend of mine..... cut, cut and cut again.
Next time you are in South Florida and looking to buy a car stop by one of Alex's dealerships, Lehman Auto World. Ask for Alex, tell him Rick sent you and perhaps he'll throw in some floor mats with your purchase. Perhaps not, things are tight.
Rick,
The Executives Profit, LLC
www.theexecutivesprofit.com
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