All their decisions have consequences and these decisions are played out on a dealership board. Service levels, combined with stock availability, and the above decisions result in different sales volumes. The consequences are felt both at a business and personal level as the delegates draw up dealership income statements and take out appropriate ratios. The cause, meaning and effect of debtor’s days, first gross %, F&I sales and second gross, expense to sales ratios etc. are discovered through deep experience, not lectures.
In making such decisions and experiencing the consequent effects of those decisions, delegates gain an appreciation for many of the critical issues on which business profitability depends. The simulation enables participants to understand the bigger picture of a motor dealership, and how their daily activities affect the bottom line.