Sullivan Ford Auto World: The Dealership

Sales Department Service Department

Front End Back End

Sales Manager Service Manager

Seven Sales People A Parts Supervisor

An Office Manager Nine Mechanics

A Secretary Two Service Writers

 Both new and used Vehicles were sold

 Services, maintenance & repairing of the old Vehicles
 The Sullivan often worked part time as service writers- Job Entailed
• Scheduling appointments for repairs & maintenance.
• Write up each work order, calling customers with repair estimates.
• When they retuned to pick up the cars and pays for the work done.
Finding of her own experience as a service writer:
• Customers Dissatisfaction.
• Turnover during the sullivan job was high
• Selling around 1,100 cars every year,
equally divided between new & used vehicles.

Previous Year Current Year

Total Sales Revenue- $ 30.6 million Total Sales Revenue- $ 26.6 million
Total Service Revenue- $ 3.6 million Total Services Revenue- $ 2.9 million
• Decrease in Revenue coming from the sale of new &
used cars – 13.07 %
Decrease in Revenue coming from the services– 19.44
%
• Industry standards contribution margin:
For sales- 5.5% & for services- 25% but in the case of
Auto world these were 4.2% & 24%.
• Poor performance of the service department
- sales staff reluctant to introduce customers to the
service department
• Deteriorating financial situation
- running at loss for last 6 months
- behind in mortgage payments
- accounts payable risen sharply in last 6 months