Every month most dealerships follow a similar pattern.
First couple of days of the month they ‘close out’ the previous month’s business and attempt to squeeze as many finalized sales as possible into it for their accounting and reporting. The last few days of the month, they do whatever they can to add numbers to again show as many sales and other transactions as they can for the current month.
All of this seems to make perfect sense, but the amount of time that is invested in creating a sustainable ‘pipeline’ of business, never seems to be implemented during those three weeks in between.
Upon studying ‘market share retention’ in the markets of Houston, Charlotte and several others, I found that only a few dealerships retained a good portion of their market share from month to month, while most dealerships had more of a ‘yo-yo’ effect from month to month. Since I have no way of knowing just how much they spent on marketing each month and on what they spent their marketing dollars, I can only make an educated assessment of the situation based on my knowledge of marketing data and the use thereof.
One thing that can be controlled at the dealership level, is the creation and maintenence of a ‘pipe-line’. Salespeople who have been in the business for a long time, have their own pipe-line because they have maintained a book of business out of the necessity to survive. The majority of the salespeople out there have no such book and rely almost soley on the ‘ups’ created by the dealership’s marketing, reputation and other efforts. This is not the most cost efficient way to do business. Nor is it the most wise way to do it.
Again, mentoring has to be performed internally, but the only reason it isn’t is that there isn’t the incentive to have the mentors mentor. This is where a comprehensive method of producing the mentor and the mentored is so valuable. The old dogs are not neccessarily the best candidates to become mentors…as you probably already know.