#437 - When Recon Goes Sideways

In this episode of the Independent Dealer Podcast, Luke Godwin takes the stage at an industry conference to break down one of the most expensive — and most ignored — problems in the buy here pay here business: recon. Joined by Sam Brenner of Brenner Car Credit, a five-location BHPH operation out of the Harrisburg, Pennsylvania area, Luke walks a room full of dealers through exactly what's bleeding their shops dry, why hiring more techs is almost never the answer, and what a real recon process actually looks like.What You'll Learn:Why having a recon facility often makes the business harder to run — and what that means for how you structure your shopHow Sam's shop was running 22+ labor hours per recon unit at over $2,200 a car — and what one process change cut that nearly in half within 30 daysWhy your techs are costing you double what you think if you're not tracking hours turned versus hours paidThe internal inventory manager role that most dealers don't have — and why one person owning the car from auction to front line changes everythingHow a push-pull system between an inspector and an inventory manager eliminated bloated ROs without a single increase in comebacks or customer complaintsWhat comeback cost per car sold should actually look like — and what it tells you when you're over-reconning or under-reconningWhy flat rate techs will manage you if you don't manage them first — and how to know if your salaried techs are actually worth what you're payingIf you're a buy here pay here or independent dealer who suspects your recon shop is costing you more than it should — but you don't have the numbers to prove it yet — this one will change the way you look at your shop floor.Support the businesses that support the podcast:Buckeye Risk Services - Reinsurance and wealth strategies for independent dealers. https://theindependentdealer.com/buckeyeBlytz - BHPH payment processing with fast funding and text-to-pay. https://theindependentdealer.com/blytzIturan GPS - Asset protection and customer management for BHPH and retail dealers. https://theindependentdealer.com/ituranFollow & Connect:Website: www.theindependentdealer.comFacebook Group: @independentautogroupLuke Godwin: @lukegodwinJeff Watson: /sendtojeffwLike, subscribe, and share this with a dealer who needs to hear it.