Plugging Profit Leaks: Structuring Compensation & Expense Control | Dealership Playbook Ep. 3

Welcome to the finale of The Dealership Playbook, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by operations expert Keith Monnin to decode the true mechanics of running a profitable store.   Are your dealership's marketing dollars actually moving the needle, or are you throwing money at bad data and quick fixes? To wrap up this operational deep dive, Chris and Keith sit down for an honest conversation about automotive advertising and marketing strategy.   In this episode, we break down: Advertising vs. Marketing: The crucial difference between short-term calls to action and long-term brand building. Fixing Skewed Data: Why traditional tracking methods fail and how modern core analytics give a clearer picture. Optimizing Budget Allocation: Why overspending on third-party lead providers and social media ads often fails to deliver—and where to reallocate those funds instead. Building a Genuine Brand DNA: Discovering your store's identity, staying consistent, and ditching the constant monthly strategy changes. Operations & Marketing Alignment: Why effective marketing can't fix a broken operation, and how a strong operational foundation creates long-term market dominance.   If you're ready to stop changing agencies every few months and start building a lasting brand, this conversation is for you. Be sure to check out the entire 5-part Dealership Playbook series in our podcast feed!   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!

Welcome to Part 1 of Modernizing Auto Recon, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by TURN-CONNECT CEO Brad Schafer to explore how modern technology and AI are transforming automotive reconditioning.   Why are so many dealerships still relying on outdated legacy tools and manual paperwork to manage auto recon? In this kickoff episode, Chris and Brad break down how replacing clunky, disconnected systems with AI-driven workflows eliminates bottlenecks, speeds up vehicle turnaround, and protects store profitability.   In this episode, we cover:   The Legacy Software Trap: Why legacy tools fail to adapt to modern mobile workflows and hold dealership service back. AI-Powered VIN Scanning: How computer vision and automated decoding eliminate manual entry errors in seconds. Eliminating Paperwork Friction: How automated approval pipelines remove busywork for technicians and back-office staff. Connecting Dealers and Vendors: Creating a single operating system where dealers, technicians, and vendors collaborate in real time. Adapting Software to the Worker: Why mobile-first technology built for shop floor workers drives high adoption and field efficiency.   Whether you're a dealership operator, vendor owner, or fixed ops leader looking to modernize your store, this discussion offers actionable strategies into real-world digital transformation. Make sure to subscribe so you don't miss the rest of the Modernizing Auto Recon series!     Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!

Welcome to Part 4 of The Dealership Playbook, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by operations expert Keith Monnin to decode the true mechanics of running a profitable store.   Are you running your dealership with a realistic financial roadmap, or are you just working hard and hoping for the best? In this episode, we dive deep into the essential discipline of setting and executing an effective dealership budget.   In this episode, you'll learn: The Power of Discipline: Why building a structured budget process is the single most important operational task for dealership leaders. Realistic Goal Setting: Why setting achievable targets—even forecasting a controlled loss—is better than aiming for impossible numbers. Connecting Goals: How aligning an employee's personal aspirations with business targets drives performance and retention. Old-School Leadership & Training: Lessons from the Key Royal organization on creating job value, training from scratch, and fostering accountability. Practical Steps for GMs: Simple strategies for general managers and department heads to approach budgeting, track progress against targets, and lead without micro-managing.   Whether you're a General Manager, Department Head, or Automotive Executive, learn how disciplined budgeting and supportive leadership can transform your dealership's culture.     Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!

Welcome to Part 2 of The Dealership Playbook, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by operations expert Keith Monnin to decode the true mechanics of running a profitable store.   Are improper pay plans causing chaos in your dealership's service department? In this episode, Chris and Keith break down the history and mechanics of auto technician pay, from old-school 50/50 split models to modern flat-rate pay plans, and reveal how poor compensation structures hurt dealership retention and profitability. Discover how implementing a clear, evaluation-based career path for body shop and service technicians can eliminate hostage negotiations over raises, build job value, and create a culture of predictability that protects your entire dealership's bottom line.   In this episode, we cover:   The Evolution of Technician Pay: From 50/50 split labor to flat-rate hours. Flat-Rate Flaws: How flat-rate book times are determined and the hidden traps within them. Breaking the Cycle: Why technicians quit just to get a raise and how to stop it. Structured Career Paths: How to implement a performance-based evaluation system. The Ripple Effect: How service department compensation impacts overall sales and dealership success.   Catch up on Episode 1 and subscribe to follow the rest of The Dealership Playbook series!   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!    

Welcome to Part 1 of The Dealership Playbook, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by operations expert Keith Monnin to decode the true mechanics of running a profitable store.   Why do so many dealership general managers struggle to succeed, even after decades in the automotive industry? In this kickoff episode, Chris and Keith break down the biggest blind spots GMs face when stepping up to lead a store. Running a dealership isn't just about making sales deals; it's about managing seven different businesses under one roof.   In this episode, we cover:   The GM Progression Problem: Why lack of formal leadership training leaves GMs operating reactively instead of proactively. The Power of "Save a Deal" Meetings: Why structured daily morning meetings are critical for recovering unsold opportunities and driving additional sales. Fixed Operations & Parts Inventory: How GMs can prevent hidden profit drains in the parts department and body shop. The Truth About BDC & Lead Generation: Why process and follow-up matter more than just driving walk-in traffic or blaming the ad agency. Bridging the Accounting Gap: How building cross-departmental understanding between sales, fixed ops, and the accounting office creates an aligned leadership team.   Whether you're a general manager, general sales manager, or dealership operator looking to refine your daily routine and protect your bottom line, this discussion offers actionable insights into real dealership management. Make sure to subscribe so you don't miss the rest of The Dealership Playbook series.   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman   Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!

Welcome to Part 3 of The Dealership Playbook, a special 5-part series on On Deck with Chris Herman. In this deep dive, Chris is joined by operations expert Keith Monnin to decode the true mechanics of running a profitable store.   Are inefficient pay structures, excessive guarantees, and random Saturday spiffs quietly eroding your dealership's bottom line? In this episode, Chris and Keith discuss the chaotic world of dealership compensation. They unpack how outdated practices can flush gross profit down the drain, and why you can never simply "out-sell" a bad expense structure.   In this episode, you'll learn: The Reality of Guarantees: How to structure performance-based compensation and proper 90-day onboarding periods that protect profits while supporting new talent. The Problem with Weekend Spiffs: Why rewarding standard job duties often fails to drive meaningful performance. Industry Benchmarks for Success: How top-performing stores align their management pay plans to target specific net-to-gross percentages. Fixing the Expense Roadmap: Why making variable expenses a constant through structured, non-ambiguous pay plans is the ultimate key to predictable profitability.   Don't let poor expense planning dictate your store's future. Learn how to audit your financial statements and build a compensation model designed for sustainable performance.   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com For more On Deck be sure to like and subscribe!

This week, Chris is joined by automotive industry veteran Keith Monnin, founder of Monnin Management. With over 50 years of experience ranging from body shops to executive leadership for major national groups, Keith shares his deep wisdom on what truly drives success in the retail car business.        Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman   Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com   For more On Deck be sure to like and subscribe!

Chris welcomes Brad Schafer, CEO of TURN-CONNECT, an all-in-one, mobile-first operations and productivity platform tailored for vendors servicing dealerships. In this episode, they discuss the unique challenges faced by automotive vendors and how modern technology can bridge the gap between dealers and service providers.      Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman   Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com   For more On Deck be sure to like and subscribe!

This week, Chris is joined by Joe Rosselet, the accountable manager of ARC145, an aviation Maintenance, Repair, and Overhaul (MRO) company based in Miramar, Florida. Joe gives us insights into the complex and fascinating world of the aviation industry. From the high costs of certifying simple parts like lavatory trash cans to the economic pressures that led to the downfall of Spirit Airlines, Joe shares his extensive knowledge from over 40 years in the field. Discover the intricacies of aircraft leasing, the impact of "just-in-time" inventory on the global supply chain, and how emerging technologies like AI and GPS are transforming how we fly. Beyond the mechanics and economics, Joe explores the profound joy of travel and the unique human connections made possible by aviation.   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman   Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com   For more On Deck be sure to like and subscribe!

In this episode of "On Deck," Chris Herman welcomes back John Saunders, the Founder & Creative Director of 5Four Digital. With nearly two decades in the industry, John shares his remarkable journey from working in banking to building a successful digital agency from the ground up.   John provides a raw look into the early days of entrepreneurship, discussing how he balanced a part-time job while landing his first clients and "shouting into the void" of social media to build organic growth. The conversation also tackles the future of the creative industry, specifically the "canon event" of AI and how it will reshape branding, technology, and the value of the human element.   Whether you are an aspiring entrepreneur or a seasoned business owner, this discussion offers valuable insights on:   Transitioning from a corporate career to business ownership. The grit required to scale an agency. Leveraging AI to enhance creative workflows while maintaining a premium human touch. John's passion projects, including his diverse illustration library and a new video game studio co-founded with his son.     Learn more about 5Four Digital: Website: https://www.5fourdigital.com   Follow On Deck: https://www.instagram.com/ondeckwithchrisherman https://www.facebook.com/ondeckwithchrisherman https://x.com/odwchrisherman https://www.tiktok.com/@ondeckwithchrisherman   Web Links: https://www.ondeckwithchrisherman.com https://www.thehermanagency.com https://www.12groveproductions.com   For more On Deck be sure to like and subscribe!