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March 7, 2020 pathwd 0 Comments

Yes, we know no Dealer in their right mind would remain uninsured from fire, calamity, theft, liability, employment practices, and so forth.  But did you know you have huge risks you are not even addressing?

Every job that moves through your Dealership has the potential for profit, but also a potential for loss.  Ever have a job not get ordered after the approval was received?  That was a fun phone call weeks later, and the credit for “pain and suffering” to the customer cost the net profit from 6 jobs.

Managing Window and Door Dealership Profit Loss

The typical Dealership spends about 1% of gross revenue on misordered products each year.  That’s $50,000 if you are a 5M shop, $100,000 if you are at 10M.  But that isn’t the total cost of the mistakes—that is just misordered product cost.  Add multiple deliveries, staff time consumed, extra paperwork, angry customers, job penalties, and lost opportunities, and the cost is easily 2x or 3x.  One dealer recently shared a $60,000 negative swing on a large commercial job because it did not get ordered when it should have been.

How to Stop Losing Money At Your Window and Door Dealership

So—what can you do about it?  First, start getting a second set of eyes on a project before the final order is placed.  Yes, this takes time.  Yes, this isn’t fun.  Yet, when done right, this will save your behind.  It is vital all the files are in one place and there is a system moving each job forward through this second review efficiently.

Second—get a system that moves each project through your Dealership, with automatic workflow, built-in reminders, and auto-reports that show your people where the ball might be dropped.  Catch that missed order 1-2 days after the approval is received, rather than 4 or 5 weeks later with an angry call from the customer.  Track your vendors, shining a bright light on their potential system glitches and errors with the same tracking and notices.

Get covered for risk that is happening today and every day—your individual jobs!


PATH | ERP—software for Window & Door people by Window & Door People.