In this ASOTU Edge Webinar, Douglas Austin (StrategicSource) and Matthew Haiken (Prestige Auto Collection) joined Kyle Mountsier to unpack where dealers are overspending — and how to fix it fast.
The Big Picture
Most stores manage 130+ expense categories, yet 95% lack a purchasing department. The result? Dealers often overpay 25–30% on non-inventory costs.
The upside: with a focused sourcing process, dealers can lift net profit 1–2% — no extra units required.
“We thought we got the best deal because we negotiated hard. But without tracking contracts, we were missing renewals and hidden fees.” — Matthew Haiken
Smart Sourcing Beats Hard Negotiating
Old-school procurement relied on beating up vendors for better deals. The modern approach is process-driven, not personality-driven.
StrategicSource’s model:
Benchmark real market pricing
Review terms, not just totals
Renegotiate first — most dealers keep 72% of incumbents
Audit results and track renewals
It’s not about replacing relationships — it’s about verifying value.
Where to Look First
Start with categories that hide waste but don’t touch customer experience:
Shipping & Freight Audits – Recover overcharges
Credit Card Processing – Optimize fees
Uniforms & Laundry – Reset rates, confirm terms
Waste & Recycling – Match service to need
Office Equipment & Print – Count supplies, not guesses
Each can deliver quick wins in weeks, not months.
The 3-at-a-Time Rule
Trying to tackle 130 categories at once is impossible. Instead:
Pick three expense areas
Benchmark + renegotiate
Lock new terms, then repeat
Most savings come from clarity and cadence, not upheaval.
The Payoff
Haiken’s group reviewed 18 categories in a few months — identifying $886,000 in savings with a path toward $1–2M. Some were big hits, others goose eggs — but every data point built confidence.
“It’s surgery, not demolition. You move category by category until it shows on the P&L.” — Haiken
🎥 Watch the full ASOTU Edge replay for the top 10 high-impact categories and a step-by-step cost-reduction plan.
