Are you putting all your eggs in one basket?

In his latest “Think Tank Tuesday” video report, Potratz Advertising chief operating officer Paul Portratz stresses to dealers the importance of having multiple streams of income.

Potratz says this is “one of the biggest financial lessons one can learn.”

“If you work for a company, chances are you are dependent on that income from one company; but if you are a business owner, have you developed multiple streams of income?,” he asks.

Car dealerships have the potential for several income streams, but dealers have to capitalize on them, he said.

Besides the obvious — new and used cars — Potratz contends dealers should focus on the service and parts department, as well, and asks dealers what steps they are taking to promote these departments and increase revenue opportunities.

The service department has become increasingly important as of late due to the fact that the average age of vehicle on the road in the U.S. is 11 years, and is still on the way up.

“This (service and parts income) is the low hanging fruit,” says Potratz.

And of course, many service customers will often buy with that very same dealer, leading to yet more income and perhaps a trade-in.

Bottom line?

Creating multiple streams of income acts as safety net when the economy ebbs and flows and when vehicle sales are slow.

To view the Potratz’ latest “Think Tank Tuesday” video, click here.