Enterprise 1: Business Management

Study Guide ABRM

How is Operating Profit calculated?

Revenue - Expenses overhead

How is IPC calculated?

ADR x DE% x Days in Month + Net other

When is it okay to void a ticket?

When a renter never took possession of a vehicle OR when a ticket needs to be replaced by a duplication ticket.

When is it okay to backdate a ticket?

When a renter returned on a previous day.

What should you do if a retail customer returns their rental and they still have an outstanding balance that they cannot pay today?

The contract will be closed and we will have to bill the customer.

What is a chargeback?

A chargeback is a reversal of a credit card transaction initiated by the cardholder's bank, typically due to disputes over unauthorized charges or dissatisfaction with a product or service.

What are the best practices for minimizing a charge back?

• Make sure the card chip was inserted for payment

• Make sure the name of customer and name on card match

What are the best practices for managing your branch’s bad debt expense?

• Taking proper security deposit amounts

• Follow chargeback best practices

• Perform daily callbacks to keep rentals updated

• Having a plan to work your account receivables

Give 3 examples of uninsured losses

• Damage to a non-rev car

• Lot damage

• Employee accidents

Give 3 way to control uninsured loss expense at the branch

• Safe driving

• Daily inventory of fleet

• Proper managing callbacks

What are the best ways to control your physical damage? (Reserve Expense)

• Writing proper claims

• Proper underwriting

• Collecting deductibles

• Shopping cars immediately

How do you control depreciation expenses?

• Ensuring you have the right fleet for the right market

• Getting proper rate for specialty vehicles

Best practices for controlling fuel costs?

• Holding customers responsible for matching fuel

• Take launchpad when picking up drops

• Offer prepaid gas

• Monitor gas card usage

• Be conservative with fuel levels employees put into rentals

Best practices for minimizing your Cust Sat expense?

• Prioritize timeliness, cleanliness, and friendliness

• Strong opening

• Proper CARPing

• Resolving questions without throwing money at the problem

• Strong close

• PLEASE+1

What is Preventable Maitenance?

Expenses done to prevent a larger issue

Ex: LOFR before engine blow

What is Non-Preventable Maintenance?

Expenses to fix an existing issue (missing parts / blown engine)

Ways to increase Days Earned %

• Red cars within 20 mins

• Getting updates on workshop cars

• Marketing

• Working return list

• Answering phones within 2 rings

• Say yes to everything

Ways to increase Rate

• Maximizing Insurance Rate

• Walking the lot

• Break the rate to make the rate

• Top down selling

• Selling features on cars

Ways to increase Net Other

• Morning huddle different everyday

• Goal boards up to date

• Offering every product

• Roleplaying

• Knowing basic rebuttals

• Protection knowledge

What are the 4 areas of our business?

• Employee development/retention

• Profits

• ESQI

• Growth

Gross Cost is calculated through what

• Depreciation

• Interest

• Reserves / uncollected claims

• Taxes

• Liability

• Maintenance

• Fuel