The Power of Twenty Presented By: Chuck Bonanno National Director of Twenty Groups TXIADA Annual Convention Monday, July 24, 2017

What Is A Twenty Group? Twenty Groups Began in 1946 Consisted of 20 Midwest Ford Dealers Chris Leedom Began Independent Dealers Program in 1995 at NCM NIADA Acquired The Program in December of 2015 Definition: Group of Similar Non-Competing Dealers with respect to size, experience, business model scope & focus. The Group meets 3 times per year to review results, share ideas, offer each other advice and ultimately improve everyone's business. These groups are created as “clubs” where the membership determine meeting sites, dates, agenda topics and are responsible for finding prospective members to fill the group.

Why Should A Dealer Join? No Better Educational Program Available Creation of Your Board of Directors Achieve Success…..Regardless of Your Definition Compare Your results to Group Averages and Industry Benchmarks Share Ideas Review Products & Services Moderators Are Industry Experts – Trainers & Consultants Online Forums & Discussion Groups Monthly Composite Industry Event Special Invitations & Discounts

When Should A Dealer Join? My Favorite Question Objections: I Can’t Get Away I Can’t Afford It I Can’t Report Maybe Next Meeting This Is An Opportunity For You To Work ON Your Business Not IN It!! “Training Doesn’t Cost…..It Pays!”

Costs of Membership Monthly Membership Dues: $330 Per Month, Billed Quarterly or $3,960 Annual Investment Travel: 3 Meetings Per Year: Transportation To & From Meeting Site plus Personal Accommodations Pro Rate Expenses: Moderator expenses, Meeting Facility expense, All catering Including Meeting Room meals and Group Functions, Plus Meeting Materials, AV Expenses

Twenty Group Sample Agenda Topics Dealership Pay Plans, Bonuses, Commissions & SPIFFS Website Reviews Marketing Plans & Advertising Compliance Forecasts & Budgeting Growing Sales & Gross Profit Expense Control Homework Assignments & Studies Composite Best Idea Contests

Best Ideas Reinsurance Companies – Warranties & CPI BDC’s – One Person or Entire Staff Services Like Podium or Everquote Social Media Advertising Strategy Online Parts Buying: Car Buying Online Application/Buying Process Predictive Scoring Models Budgeting/Forecasting Tools P & P Manuals/Employee Handbooks

Twenty Group Composite The Most Powerful Reason To Join Monthly Financial Results Including P & L, Balance Sheet & Cash Flows Group Averages & Benchmarks Quantify Your Results & Compare Year Over Year Analysis Trend Analysis Composite Review & Study EVERY Meeting Tool Used To Create Change Between Meetings

The Power Of Benchmark Performance - BHPH Gross Profit Per Unit Sold – Average $5,200 Benchmark $5,700 $500 Per Unit Forever…@25 units per month = $750K in just 5 Years O/H Per Unit Sold – Average $3,500 Benchmark $3,000 $500 Per Unit Forever….@25 units per month = $750K in just 5 Years Avg. # of Charge Offs Per Month – Average 3.00% Benchmark 2.50% Typical 1,000 Accounts = 5 fewer Charge offs at $6,000 or $1.8 Mil in just 5 Years

The Power Of Benchmark Performance - Retail F/E Gross Profit Per Unit Sold – Average $1,600 Benchmark $2,100 $500 Per Unit Forever…@25 units per month = $750K in just 5 Years B/E Gross Profit Per Unit Sold – Average $500 Benchmark $1,200 $700 Per Unit Forever…@25 units per month = $1.0 mil in just 5 Years O/H Per Unit Sold – Average $3,200 Benchmark $2,700 $500 Per Unit Forever….@25 units per month = $750K in just 5 Years

Power of Twenty Review Your Board of Directors 19 Other Views and Experiences 19 New Ideas Each & Every Meeting Candid Product & Services Reviews Candid Assessment of Your Business Action Plan To Succeed 19 Dealerships To Visit & 19 Dealers To Call For Advice Guidance From Your Group Moderator Friends For Life

Thank You For Your Participation Open Forum…… Thank You For Your Participation