How to improve gross profit per new unit at a motorcycle dealership

In the dynamic world of motorcycle sales, enhancing the gross profit per new unit is a critical aspect of maintaining a thriving dealership. In this blog post, we’ll explore actionable strategies to turn the gears of profitability, addressing key challenges and offering insights on improving your dealership’s financial performance.

Implementing Sales Control Processes:

Lack of sales control processes can hinder profitability. Establishing structured procedures ensures a smoother sales process, reduces errors, and sets the foundation for maximizing gross profit per new unit.

Aligning Goals with Sales Process:

To drive success, it’s essential to align your dealership’s gross targets and volume objectives with the your sales process. This synergy ensures that every sale contributes positively to your bottom line.

Investing in Sales Consultant Training:

Sales consultants play a pivotal role in influencing gross profit. Providing comprehensive training equips them with the knowledge and skills needed to navigate the sales process effectively, contributing to increased profitability.

Linking Sales Commission to Gross Profit Objectives:

Create a direct connection between sales commissions and gross profit objectives. This not only motivates your sales team but also ensures that their efforts align with the dealership’s financial goals.

Optimizing the Trade-In Process:

Develop a robust trade-in process to mitigate over-allowances on trade-ins. Managing customer expectations on used bike trade-in valuations is crucial for maintaining a healthy new bike gross.

Reviewing Cost of Sales for Accuracy:

Regularly review the cost of sales to guarantee accuracy. This step ensures that your financial calculations are precise and reflective of the true costs associated with each sale.

Leveraging Dealer Management Systems (DMS) Effectively:

Harness the power of your dealer management system to control gross and streamline the sales process. An effective DMS enhances efficiency, reduces errors, and contributes to overall profitability.

Increasing Involvement of Management:

Encourage active involvement of the sales manager and senior management in the sales process. Their insights and guidance can make a significant impact on decision-making, leading to improved gross profit per new unit.

Balancing New Bike Inventory:

Manage new bike inventory carefully to avoid excessive stock, which can create perceived pressure to discount. Striking a balance ensures that each bike sold contributes positively to the dealership’s profitability.


Revitalizing your motorcycle dealership’s gross profit per new unit requires a strategic approach and a commitment to continuous improvement. By addressing key challenges such as sales control processes, staff training, and effective use of management systems, you can steer your dealership toward increased profitability and sustained success in the competitive market.

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