Automobile Dealerships – Valuing Blue Sky

Blue Sky is the intrinsic value of an automobile dealership, over and above the value of its tangible assets. It is sometimes equated to the goodwill of a car dealership.

Most articles regarding the blue sky value of new car dealerships cite a multiple of earnings formula, such as three times earnings, four times earnings, and so forth. The idea that “blue-sky” can be determined by anything times anything is just plain wrong.

Even NADA the National Automobile Dealers Association in its publication entitled “A Dealer Guide to Valuing an Automobile Dealership, NADA June 1995, Revised July 2000 bemuses, in part, with respect to valuing a dealership by using a multiple of earnings: A Rule of Thumb valuation is more properly referred to as a “greater fool theory.” “It is not valuation theory, however.”

In its Update 2004, NADA omitted its reference to “fool”, but referred to the multiple formula as rarely based upon sound economic or valuation theory, and went on to state: “If you are a seller and the rule of thumb produces a high value, then this is not a matter of great concern. Go for it, and maybe someone will be stupid enough to pay you a very high value.”

A dealership’s blue sky is based upon what a buyer thinks it can produce in net profit. If potential buyers think it cannot produce a profit, the store will not sell. If it can produce a profit, then variables such as desirability of location, the balance the brand will bring to other existing franchises owned, whether or not the factory will require facility upgrades, and so on and so forth, determine whether or not a buyer will buy that particular brand, in that particular location, at that particular time.

I have been consulting with dealers for nearly four decades and have participated in over 1,000 automotive transactions ranging from $100,000 to over $100,000,000 and have never seen the price of a dealership sale determined by any multiple of earnings unless and until all of the above factors have been considered and the buyer then decided he, she or it was willing to spend “x” times what the buyer thought the dealership would earn, in order to purchase the business opportunity.

To think otherwise would be to subscribe to the theories that (1) even though you think a dealership could make a million dollars, the store is worth zero blue sky because it made no money last year; and (2) if a store has been making $5 million per year you should pay say 3 times $5 million as blue sky even though you think you will not produce that kind of profit. Both propositions are absurd. If a buyer does not think a dealership is worth blue sky, then what he is really saying is that he sees no business opportunity in the purchase and therefore, in my opinion, he should not buy the store.

Each dealership is unique with respect to its potential, location, balance that its brand brings a dealer group, and condition of facility. The sale is also unique with respect to whether it is a forced liquidation, orderly liquidation, arms length, insider, or a case where an anxious buyer is trying to induce an unwilling seller. There are management factors to consider, length and term of leases, possibilities or non-possibilities of purchasing the facilities and whether or not the factory wants to relocate the store or to open a new store up the street.

In the car business it is impossible to pick a dealership or a franchise out of a hat, multiply its earnings by some mystical number and predict either what the dealership is worth, or what price it would sell for – and it doesn’t matter if you are talking about a Toyota, Honda, Ford, Chevrolet, Chrysler, Dodge, or any other dealership. At any given time one franchise might be considered more or less desirable than another, but they are all valued in the same manner.

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Synopsis of Automobile Industry

It was way back in 1769 when a steam-powered automobile was created for transport purposes. The next important year was 1806, when cars were running on fuel gas and was powered by internal combustion engines. Later electric cars came into the industry during the 20th century; However it became popular only in 21st century when consumers and government were more concerned about low-emission vehicles.

Phases in automobile industry:

• Steam automobiles (Cugnot Steam Trolley)
• Electric automobiles (The Henney Kilowatt)
• Internal combustion engines (Benz Patent Motorwagen)
• Veteran era (Renault Voiturette)
• Brass / Edwardian era (Ford Model T, Mercer Raceabout, Bugatti Type 13)
• Vintage era (Austin 7, Bugatti Type 35, Lancia Lambda, Cadillac V-16)
• Pre-World War era (Alvis Speed ​​20, Ford V-8, Bugatti Type 57, Volkswagen Beetle)
• Post-War era (Morris Minor, Jaguar E-type, Ford Mustang, Datsun 240Z)
• Modern era (Toyota Corolla, Range Rover, Mercedes-Benz S-Class, BMW 3 Series, Ford Taurus)

The largest automakers in US are General Motors Corp., Ford Motor Co. and Chrysler. US ranks third after Japan and China under the list of world's top 20 motor vehicle producing countries.

The future of cars is overloaded with high end technologies which are eco-friendly and cost effective for customers. The auto manufacturers are spending a lot of money in R & D (Research and Development) to create a product that is safer, sustainable, energy efficient and less polluting. Alternatives to fuels like hydrogen cars, electric cars, compressed-air cars, etc are entering the market to give high mileage at low cost which is beneficial for owner of the car and environment too.

Latest technologies like BMW's Turbosteamer, Regenerative braking, Installation of Vortex is used which helps in saving energy and thus cost. To improve the quality and strength of automobiles, the auto manufacturers are replacing steel with materials like fiber glass, carbon nanotubes, duralumin and carbon fiber. Few other technologies like platoons, automated highway systems and vehicle infrastructure integration enhances road safety and traffic flow.

Automobile industry was deeply affected by the recession which recently occurred. However, it is reviving and it will soon come back to normal in the near future.

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The Growth and Development of the Automobile Industry – A Deeper Insight

The word "Automobile" has its origins in Greek and Latin and it has become an integral part of every man's life. It has become so indispensable that on an average, a person spends at least 3 hours in his vehicle every day. Automobile was once thought of as a luxury and only a select few could indulge in. Now, the times have changed and automobiles have become a means of transportation catering to the vast majority.

The transformation from luxury to inevitability

Automobiles, in general, refer to the humble car and the estimates suggest that there is a car for every eleven persons on earth amounting up to 590 million passenger cars. There are various variants of automobiles that cater to every cross section of the population. There are variants that could set you back by a couple of million dollars and other models that cost you a few thousand dollars.

The technological advances in the automobile sector have been tremendous in the last 100 years. The century's greatest invention or advancement should definitely belong to the automobile industry. One of the earliest pioneers of the automobile industry was ransom olds from the oldsmobile factory. In the early 1900's, he introduced the Production Line concept, thus churning out vehicles every few minutes. This idea was greatly revolutionized and implemented by Henry Ford, who elevated automobile industry to the next level. Ford quickly grew in the first half of the 20th century and slowly but steadily spread globally.

Growing along with time

With advancement of age, the automobile industry gradually grew in continental Europe and England. Japan introduced quality initiatives that further enhanced the industry. Toyoto from Japan were the pioneers of Total Quality Management and Six Sigma, which have been the guiding principles of the automobile industry for the last 50 years. Today, Toyoto are the world's largest automobile company according to recent market estimates.

The global boom of the 1980's was largely because of the automobile revolution. Ford, General Motors and Chrysler, the big 3 automotive giants of America, had a huge say on the country's economy. They decided the health of the economy and the recent global economic recession has affected them badly. This has made them approach the government for loans and benefits, which have been fulfilled by the government after placing appropriate clauses.

Advent of technology and innovations

Automobile has transcended from being a medium of transportation to a medium of entertainment after the advent of super fast cars competing against each other. NASCAR and F1 races are huge crowd pullers every year. People have made fortunes and drivers of these machines have made their name in history. The fact that automobile racing involves huge costs has made the racing industry reel in these uncertain economic times. The sport has seen tragedies with loss of life in some instances. This has made room for strict safety regulations, which are now mandatory for all the automobile shows.

The negative part

Although man has made a huge leap forward with automobiles, there is a downside to this technological wonder. The emissions from these machines have raised serious environmental concerns with calls for more eco-friendly vehicles. Automobile companies have invested hugely in research and development of eco-friendly vehicles. Except for this single downside, there is slightest of doubts to say that automobiles have been the find of the previous century.

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Trains, Planes Or Automobiles

With the population of the world growing at a steady pace, the governments of various countries are doing their best to provide their people with easy modes of transportation. Today, one can travel across the world easily and at relatively inexpensive rates. All three modes of travelling, including trains, airplanes and automobiles each have their own importance.

Automobiles are best for cities and towns. A journey of ten or twenty miles is an everyday affair for most people and in order to save money, people travel by buses or their own vehicles. A major part of the population travel by bus in many countries. Bus fares are cheap and a large number of buses operate in heavily traveled areas. It is usually easy to find a bus traveling to and from your part of town and a large number of people travel by bus when going to work and even school.

Cars give you the flexibility to manage things according to you. You are not dependent on the timing of the public transport and if you have a job that requires you to make a lot of adjustment in your daily schedule then a private vehicle is perhaps the best choice for you.

In order to travel larger distances, many people use trains. Trains are perhaps the most common mode of travelling for people who have to cover a fair bit of distance to get to their workplaces or offices. Similarly, trains are very useful if you wish to travel from one city to another. The rates are affordable and trains offer a comfortable journey.

In order to travel within the country, one can also get an airplane ticket but the prices are always more expensive than that of other modes of travel. However, with the present economic conditions, the prices of some airfares have been slashed to an affordable amount and some flights are available at cheap rates. Flights are the best option in case of emergencies as well. Flights connecting different cities reach their destination in a few hours. You might have to travel for a day in a train to get to the same destination but flights get you to the destination in just a few hours.

If you are looking to travel to another country, then in most cases you have no other option but to travel by air. One can also travel by a ship, but fares for a cruise are often expensive and the services are restricted to only a few ports around the world. The bottom line is that the mode of transportation that you should choose depends on the distance you have to travel.

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The LED Application In The Automobiles

With the influence of the economic crisis, the price of the LED products is decreasing, especially in the fourth quarter of 2008. But it can not stop its market demand. Both the LED lights and the backlight products are trying to occupy the market share. The high luminance LED will become the main characteristic of the future automobiles, which is due to the outstanding advantages of the LED. What is more, using the LED illumination can alternate the design of the automobiles. Because of its advantages, the LED is widely applied to construct a comfortable environment in the car, such as the indicator, navigation light and the treadle illuminative light. And the flat-panel display will increase the application of LED further.

Recently, the LED automotive lights are promising in the electric industry. The LED automotive light is energy saving and with high-luminance, which is becoming the advantages to occupy the market. The high-luminance of the LED enables it to adapt more crucial environment. The light can secure the safety of the car at night. LED light can be used to replace the halogen light, which is more effective and colorful. The beautiful appearance attracts so many young customers.

The LED has offered a great business opportunity with its unique advantages, attracting so many manufacturers to take the backlight market, especially the flat-panel display and the liquid crystal display market. Changing the CCFL backlight into the LED backlight will be a new emerging market. Experts point out that the development LED backlight is very promising. The performance of the LED chip is increasing and the cost is reducing, so the LED will become the mainly backlight technology of the liquid crystal display. What is more, the Car electronic products are also promising, such as the car navigation system and radar. If the LED backlight technology can be used in these systems, these systems will be more competitive. The related integrated circuit is MID400.

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Save Money on Automobiles

Okay folks, one thing we all face sometime is the need to replace that old junker in the driveway. You know what I’m talking about, that car that you leave at home because you don’t want to pay your bus fair and a tow bill! The problem is with the economic crisis who can afford a car? You could spend hours wandering around used car lots and talking to people who act like they are your best friend only to end up paying too much and thinking you got a good deal. You could scour the classifieds for that perfect car, but who wants to spend half the day on the phone and the other half looking at other peoples cars? The secret to saving money is to think like a business!

Dealerships utilize many ways to stock their inventory, one of the best is used car auctions. Car auctions are a well guarded industry secret that they don’t want you to know about.Well, the secret is out all you need is a guide to locate these fabulous money saving auctions. These auctions carry a wide selection of vehicles including cars, trucks, and SUVs. The inventory can come from a variety of places including bank repossessions, government seizures, and dealer overstocks. The best part is the savings, some of these cars are hundreds maybe thousands of dollars under value! You might save enough to buy two cars, or perhaps you’ll find that sports car at a price you can afford. You deserve to have a car that you like at a price you can afford and this might be the best way to accomplish both. Go ahead and see what values can be found through the power of auto auctions!

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Automobiles – Find Out the Famous Brands

A lot of car brands exist worldwide that provide the best transportation services. For instance, Toyota is one of the leading dealers in New York. Toyota dealers have a full line of dependable vehicles. An automobile is a motor vehicle, the aim of which is to transport passengers from one place to another. They are run on roads, and at maximum, have seats for around eight people. At the moment, there are around 600 million cars worldwide. It is one of the major forms of transportation, and possesses the latest forms of technology in its design.

A lot of automobile companies exist. The following are some of the most popular European automobile brands:

Rolls-Royce

Rolls-Royce is a British manufacturer, which specializes in luxury cars. It is one of the leading car companies in the production of luxury cars and manufactures high quality cars. Its quality and popularity can be figured out from the fact that its first production, Silver Ghost, produced in 1907, is still used in charity drives and special events. Their sale has, however; now increased in the Middle East by 98%, as more people opt for this luxury car.

BMW

BMW, Bayerische Motoren Werke AG, is the child company of Rolls-Royce motor cars, and a German automobile car brand. It is best known for its performance and luxury vehicles. BMW follows a certain nomenclature: it consists of a 3 digit number, followed by one or two letters. The first number represents the series number, while the next two represent engine displacement. BMW has a history of success in Formula One as well. It has won 20 races, the recent one being by the Sauber F1 team.

BMW employers famous and experienced designers for their cars, and as a result, they have gained worldwide recognition for their exceptional designs and their contribution in art, which goes beyond motor vehicle design. Even their headquarters in Munich, Germany, has become an icon.

• Mercedes-Benz

Mercedes-Benz is one of the most well-known and established automobile brands in the world. Mercedes is said to be the first car on the road with brakes on all four wheels and the first to introduce pre-tensioners to seat belts. This is very helpful, in case of a crash, because a pre-tensioner will tighten the belt instantaneously and remove any slack in the belt. Recently, it also pioneered a system called Pre-Safe to detect an imminent crash nearby and prepare the car's safety system accordingly. It calculates the braking force required to avoid an accident, and lets the driver avail alter the speed.

• Aston Martin

Aston Martin is a British manufacturer, known for luxurious sports cars. It was founded in 1913 and produced its first car in 1915. Each car of Aston Martin reflects a unique characteristic which is a result of craftsmanship and latest technology. The designers balance the beauty and performance, giving it superb high-speed stability. Few models of Aston Martin, like Aston Martin DB9, have a very sporty look and are able to deliver a maximum speed of 306 km / h. They include features like airbags, parking sensors, fog lamps, headlamps, etc.

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Advocacy for the Deaf and Mute Patients

As you nurses go on with your daily tasks of carrying out doctor’s orders and caring for your patients, have you ever wondered what happened to the old fashion way of nurse-patient interaction? How many of your patients today have you actually took time to talk to and learn first hand information on what specific set of behaviour brought them to the hospital today? One? None?

With the nurse-patient ratio existent in many public hospitals today, it is quite impossible to attain this one basic principle you learned from Fundamentals of Nursing. It is not surprising that many people are still unaware how much activity a nurse must finish within her 8-hour shift. Most of the time, spending a quality nurse-patient interaction would be the least of the nurse’s priority because of staffing shortage as well as the tasks that she needs to accomplish within the day. As such, how will a nurse get sufficient clinical subjective information from the communication-challenged individuals, like the mute and deaf? Surely, a private hospital will have an in-house specialist for this type of clients. But how about the government or public hospitals? Would you say public hospital nurses are not up to this type of challenge? Before you make up your mind, here are two factors which, both the private and public hospital will have difficulty in resolving:

Patient’s Communication Skills

Bear in mind that effective communication involves feedback. Regardless of the presence of an in-house communication specialist within the private hospital, if the patient cannot communicate using the tools that the specialist have, there won’t be any progress at all. What will a nurse do if she has a deaf and mute as well as illiterate patient?

A nurse can use illustrations and photos to teach this type of patient, but to get the subjective data necessary to confirm a clinical status would require quality nurse-patient interaction and collaboration with the closest family member of the patient.

Reason for Hospital Admission

It is not surprising for a nurse to receive a patient with symptoms of abuse. She can take note of this from the bouts of crying or tension of the patient whenever the source of abuse is present. However, this may be difficult when the patient is both deaf and mute. It would be a real challenge to prove abuse, especially if clinical symptoms that are verifiable with physical examination in conjunction with laboratory tests provide no clues. The nurse will have to use her senses most of the time with these types of patients.

Being present inside the room every time someone visits the patient would be ideal. She can take note of her patient’s reaction towards the visitor to assess behavior. She can then recommend these observations to a psychologist.

These patients are those kind of patients that nurses need to spend more time to establish rapport. You can expect that individuals with this disability are more apprehensive of strangers.

Of course, nurses would like to get the ideal – a patient who can communicate his needs clearly and effectively. But alas, the situations most nurses are in, were most of the time, far from the ideal.

It’s circumstances like these that makes a nurse want to learn more – to get her communication skills amplified. She can voluntarily take courses on hand communication for the deaf and the mute. After getting these skills, she can gather out of school youth in her locale and teach the basics to these children and teenagers. At the hospital, she can propose a program for the admitted deaf and mute patients to learn the basics of this communication.

The nurse may not be satisfied with these simple altruistic methods, such that she can start to join NGO’s and advocate this in public schools, colleges and universities. In fact, a nurse can do a study on this and have it communicated to the allied health professions as a wake up call. Well, these are just ideas, but hey, human inventions resulted from ideas, right?

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Mobile POS Usage in Hospital Retail Operations

As consumers, most of us have had some exposure to a mobile POS system while either shopping at a retail store, or dining at a restaurant or quick serve establishment. Many restaurant servers now come to the table equipped with a mobile or hand-held device for order taking instead of the traditional order pad and pencil, with the completed table order automatically going to the kitchen, and the server quickly moving on to the next table. In many retail stores, clerks now walk the sales floor with a mobile POS device for line busting to quickly check out customers standing in long lines and get them on their way faster. This not only speeds check out time and increases customer satisfaction, but also reduces the potential for losing a customer.

Healthcare retail offers many opportunities where a mobile POS solution can provide added convenience to employees and guests, expand the functionality already present in a traditional POS system, and greatly improve operational efficiency with cost saving results.

The Cafeteria and Coffee Cart

Take for example the hospital cafeteria with traditional POS terminals situated in the check-out lanes, and additional outdoor seating that opens when the weather permits. Rather than routing patrons through the check-out lanes to pay for food and beverages before seating themselves outside, mobility allows the transaction to be performed at table side giving the employee or guest more time to enjoy their meal and dining experience, or possibly prevent the loss of a customer. With a traditional POS system in place, the cafeteria menu may be broadcasted to the mobile device with detailed sales data rolling into a central data base for reporting and informed decision-making. Mobile solutions are also ideally suited for mobile coffee carts, or mobile food carts where a POS system is needed, but space and portability rules out a large cash register with all its peripheral devices.

Patient Guest Services

A lot of hospitals now offer patient guests the convenience of ordering food and beverages from the cafeteria menu presented on an iPad or Android device, and paying either by cash or credit card on the same device. Just image visiting a friend or family member in their hospital room as patient dining is either taking or delivering their meal. It’s a great comfort and convenience to be able to order and enjoy your meals together.

The Gift Shop and Fundraisers

Usually run by the hospital gift shop, fundraisers are a vital revenue generator for the hospital retail area. Generally held in the hospital lobby, the fundraising event may sell anything from uniforms to jewelry, and are usually geared to the hospital employees. The use of a mobile POS system is ideal for this temporary event, especially when the capability to accept credit card or employee payroll deductions as payment types is enabled.

Tell us about how you’re using a Mobil POS solution in your hospital, or where your operation has a need for it.

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Things To Consider When Selecting An Animal Hospital For Your Pet

It is not wrong to say that after home, an animal hospital is the next important thing for your lovely pet. It is essential to select the one for your pet so that in case of an emergency you can take your pet without any delay. You need to see that the hospital you are selecting has a specialized team of doctors and the trained staff. It is important to note that the animal hospitals aren’t just offering treatment of domestic animals and pets rather wild animals that are ill or injured in any accident.

Selecting a veterinary hospital may seem like a simple task, however there are a number of factors associated with selecting the best hospital for your needs. It is not only the location of the hospital that matters a lot, the hospital must have the hours of operation that match your work schedule.

A special bond is developed between the pets and their owners. It is for this reason; they become your very close friend or family member is a very short duration of time. When you adopt a pet, there come my responsibilities. One of these responsibilities is arranging a suitable animal hospital where general checkups as well as complicated operations in time of need are possible.

In addition to the location, it is also important to consider the services that are available with the hospital. For instance, many animal hospitals offer special appointments or programs to the new clients. They offer expert advice and treatment for elderly animals or those with serious ailments. In the very first meeting, it is important to discuss with your veterinarian what exactly are your expectations and how you want to proceed further.

In addition to above, there are a few other aspects you need to consider while selecting a suitable animal hospital for your pet. For instance you should inquire about the license of the veterinarian and find out if the hospital has a registered veterinary staff or not. There are a number of tests a registered veterinary personnel have to pass. These include the regulated state tests for treating all vets. It is important to go to a registered technician because he will have the skills and experience that are considered must for the examinations and proper treatment of the vets.

You should not allow a non-registered technician to administer pills and shots or to treat your pet as this can prove to be very dangerous. It is also important to first tour any animal hospital to interview the veterinarian. While doing so, you should observe if proper hygiene is maintained in the hospital or not; especially in the surgical rooms and examination rooms.

So, the above mentioned are a few important aspects you need to consider while selecting an animal hospital for your lovely pet.

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