The priority placed on absorption rates originated as a defense against downturns, explains Eric Johnson, partner, Johnson Tractor, Janesville, Wis., but it has evolved since to be one of the primary metrics to measure the health of a dealership. He and his brother, Leo, say it's used unfairly to decide winners and losers. The Johnsons have a contrarian view on absorption's "holy grail"? and dismiss the argument that parts and service can support a business during a downturn.
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