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SMALL CHANGES FOR BIG RESULTS IN MORAL AND PROFIT Over the last few years, I have been away from writing my usual opinions about processes at car dealers. Of course, we all know that I have been a champion for dealers to practice over the top customer...

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SMALL CHANGES FOR BIG RESULTS IN MORAL AND PROFIT

Posted by Kim Clouse | Posted in Dealer Process | Posted on 14-08-2011

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Over the last few years, I have been away from writing my usual opinions about processes at car dealers. Of course, we all know that I have been a champion for dealers to practice over the top customer service. It was the topic of several of my speaking engagements at various events and I would like to thank those of you who attended those events to listen to me rant. Several new buzz words have emerged over this time from the flood of new automotive consultants and vendors. I thank them for making my previous points about customer satisfaction and employee retention valid.

It seems the more things change, the necessary adaptation by dealer principals, general managers and fixed operation managers is getting better. We really had no choice; every single entity who listed our inventory, labor time guides, and overall manufacturer information, listed it with everything available they could get their hands on. It was also advertised on those manufacturer sites, social, and every available PPC slot money could buy. There is nothing wrong with that because once the consumer got a sample of how they thought us dirty car dealers and sales people were stealing from them, they starved for it. Thinking about this is what tossed me back into the world of voicing my opinion. Those of you who know me know how much I love sugar coating and snake oil. In a bit of a twist, I decided to land on our customers for a change just this once.

This kills me and we have all heard it; You have other invoices (although it is printed on the sheet they arrived with,) The internet says my car is worth another $2000.00 (we lie if we explain, even though it is like new, we have to inspect it to sell it.) The dealer across town offered me a better deal, on and on. Fine; if the customer does the math for just a mini deal paying sales $200.00 minimum and with the special rates finance gets $200.00 without products. A 10 car month yields the salesperson a whopping $2000.00 plus any bonuses. Wow, we are really taking advantage aren’t we? Sure, there are dealer incentives and management driven spiffs but not enough to raise wages to the next tax bracket for a sales person or perhaps even management. Most people who are complaining about this would never work for the money they are demanding we settle for. That brings me to the title of this post about small changes.

Money motivates people, even small amounts. Just put up a $10.00 spiff for verified appointments that show and see what happens to traffic.
If we work the formula at the dealer principal and general manager level, we can determine how many extra cars we need to sell above our average to offset any amount of payroll increase. If we do this in small increments over time and adjust to the trends we do more than spend money. Our sales go up and overall moral right along with it. Good moral translates to better customer service which translates to more word of mouth and increased sales storewide. More sales, more profit, more money = better moral for everyone involved. On the other side of this coin,  if I am a general sales manager, GM or used car manager there is no way I am sharing my income with the asshats that just wait all day on something. Fire their ass, quit hiring people that can’t type or at least spell check. Make your veteran salespeople train the ones you need to keep to earn the extra cake. If they do not take to the training or the Pro’s do not want to teach, do not give them incentives. Make it mandatory! Process and policy are nothing without consequence, good or bad. They are just more words that pass right through their head.
I feel these small changes will improve the overall status of your store. Then we can display it on Dealer Report Cards.com to prove it.

KC

Managers, Are You Leading or Just Passing Through?

Posted by Kim Clouse | Posted in Dealer Process | Posted on 28-05-2011

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Every dealership I have visited lately has the phone calls tracked or not, going to the switchboard. Then they round robin to sales staff if the ISM is busy “We know that never happens;” The problem is either the GM, GSM, or phone king, will not make it mandatory that the salespeople have inventory, incentives, and information open on their desktop all day. They all have computers but they refuse to use the data or, the login to pertinent data is top secret. I knew it, gotta have a 4 square right?

Managers who keep information from sales staff are practicioners of Bovine Skitology period.
We know all of our customers are online. We know the manufacturers and everyone else who can gives them data that is, for the most part correct. Below is what I hear when I listen to calls. But are all of the walk in customers immune to the data flow we are feeding to the universe?  It is simply impossible. Be ready or stay away from customers, period.

Thank you for calling ABC motors: ” Yes new car sales please” one moment: “new car sales this is Joe Bob,”
“kelp ye?” (Yes seaweed) ” I am calling about the 2006 Camry you have listed on usedcars .com, gold with tan leather, is it still available?”
“Yep sure is” ” can you tell me anything about it?” “I think it has been marked down to $21699 but I can beat that a little” “Really, online it says must go $14650.00 out the door” That’s a typo” Oh, okay do you know what it should actually be?” ” Naw but I can git with the manager and call you right back, whats that number?”   click:

And they tell everyone about this highly professional individual.
The other thing is “get this now,”  we have started slipping away from the basics again. I know  it is hard to believe, not us.
Now that people are selling cars we are right back to the shortcuts. If you are always looking for the easy way out, get out of
the car business. You are the reason we we have obstacles with our customers and they have a hard time respecting us.
This is our problem. Get rid of the dead weight and start practicing customer service.

Either way you loose the deal.

Does anyone else see this? If you are doing this, do you need to be at Burger King saying, “would you like some fries with that?”
When phone prospects buy 85% of the time, why screw it up? If you do not know what you are doing or you do not feel comfortable,
stay away from the phone, pay attention and learn.
Managers, do not lose focus on the fact that you are responsible for taking up slack. In a store the other day I watched in amazement as a lady
who had lost her vehicles in the recent storms call back 3 times to get to someone. Instead of just taking the call, the managers had to find a sales specialist
to do it. Yep, five more minutes observing fault instead of contributing to leadership.

I’m just sayin!

Sell Cars, Have Fun. It is still possible.

Kim Clouse

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