The MRA Book: the business upgrade
by Paddy O’Brien, Automotive Specialist Sewells MSXI
‘MRA: The Car Dealer´s Game Changer’, 35 years in the making, is the culmination of Paddy O’Brien’s knowledge and experience, working with the best dealers in every corner of the globe. We were fortunate to interview him and discuss his new book.
What is the MRA book?
In my mind, The MRA book is a framework for decision-making. About 12 years ago, I came up with the idea to write about my 35 years of experience working with dealers in the automotive industry. The three components of MRA are MIX – RETAINED – ACTIVITY and this model helps dealers to discover which levers to pull in the business in order to maximize their performance. This is a simple yet effective model for dealers, which, when implemented, shows results.
Let’s delve a little bit deeper into the MRA formula. What does MRA mean?
The M stands for the MIX component, as in the business MIX. How is the business balanced? How is the business performing? This includes the contributions of the various departments, which collectively add to what the MIX definitely is. The richer the MIX, the better the results. The R is for RETAINED which refers to the income of the business and the cost structure. The wider the gap between income and costs, the more is RETAINED; dealers are encouraged to drive the gap wider in order to improve results. Lastly, the A is the ACTIVITY, the sales generated from the assets, the energy of the business, the principal stock. The key drivers, MIX – RETAINED – ACTIVITY, all fold into a neat equation, which the book details.
How is the book a “Game Changer” for dealers?
The MRA book contains a moniker for dealers to change the game by integrating the MRA model for optimized business performance. The MRA requires that dealers view their businesses in an entirely different way, which at times may seem unconventional or odd.
Do you view the MRA as being helpful to automotive OEMs?
Yes, auto manufacturers gain valuable perspective from the book due to the growing demand for more and more investment from their dealers. This includes upgraded facilities, which are able to accommodate more inventory and better levels of stock. I believe the MRA model is definitely in the manufacturer’s best interest for healthier dealers.
Is there anything further that you would like to share with dealers about the book?
The MRA book assists dealers in making impactful business decisions based on an innovative formula of MIX – RETAINED – ACTIVITY performance strategy that is proven to maximize dealership performance. World-class, best practice dealers have benefited greatly by installing the MRA formula.
The innovative MRA formula is surprisingly simple in Paddy O’Brien’s book, while encouraging readers to follow a ‘world-class best practices’ principle of putting science into motion to boost performance and improve revenue.