Quote:
Originally Posted by Falthor  Ben Dover Jr, I know what you're saying but you're looking at it from a branch by branch number.
As a company ERAC canada lost approxiamately 1.75 million dollars last year in un-reported damages. As in damages that had to be repaired but Enterprise canada paid for.
How much CDW is that? the easy number is about 109000. So that would mean that we would have to sell 109000 days of CDW coverage to make back this money. Now keep in mind this is "UNREPORTED" damages, this does not count actual damages, both covered and not covered by CDW.
Sure at a branch level if your branch doesn't have a lot of theft, totals, and damaged vehicles and your branch sells CDW all the time, your BRANCH will make a profit, but the company will not in this respect. Any damage is done on a per car basis and therby gets absorbed by the profit made by the rest of the fleet, and the re-sale values on the cars, the profit is NOT made on CDW.
Seriously, Discount and Budget sell the same thing for a slightly reduced price, except that if there is damage they ALSO have a deductible. |
1. Unreported damage or "uninsured losses" have nothing to do with CDW. If you want to reduce uninsured losses you need to better train employees to catch damage and confront and charge the customer.
2. If you want to gauge the profitability of cdw, you need to look at the per car difference of reserves and cdw package sales. Reserves are the 12 month rolling average of "cdw hits" or damage done by people who took cdw it goes up and down but $30-$50/car is reasonable.
Next, look at your branch's package sales, in my old group $100-$120/car was the goal. (it's different state by state, province by province)....the difference between the "reserves" and "package is your monthly "profit".
This is the last word...now go take your skills test before you post on this thread again!
2007-08-29 
Re: Accused of Damage, What Should I do (and I have pictures!) 
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