The dealer’s dilemma – logic vs. emotion

“Ups” are not sales. Too many “Ups” brought in under dubious conditions (promotions, prizes, etc.) will chase away ready buyers.

If you don’t think so, then just continue to operate out of emotion and lose market share and profits to all of your competitors.

Logic:                                                                              Emotion:

Market Share                                                                 Month to Month sales

Training Salespeople to NOT alienate                        Training Salespeople to ‘control’

Marketing systematically                                             Event Sales/Traffic Builders

Stocking Pre-Owned based on Market demand        Stocking by ‘feel’

Product knowledge                                                         “Needs Analysis”

“Be Backs” do come back                                              “Be Backs” don’t come back

 

How about recording phone calls?  What’s the point if all of your critique is based on counter-productive instruction?  The person calls with specific questions and before the questions can all be answered, the salesperson starts asking questions of their own?  If you are the product of the bad training that exists in most cases, the review of this phone call will be destructive, to say the least.  3 to 5 times more phone calls result in sales when their questions are satisfactorily answered than when the salesperson ‘blocks’ or ‘evades’ their questions.  I’ve got 25 years of research that proves it, so if you don’t think so, you’re operating on emotion, not logic.

Here’s another one: Month to Month Volume vs. Market Share.  Sure, volume is a factor in your growth as a dealership, but let’s talk about sustained growth.  You can be easily fooled during strong months as well as being fooled during not so strong months based on volume.  If the number of cars sold in your region (say, 15 mile radius, new and used – excluding older used cars that you wouldn’t be selling anyways) is up 20% in a month and your volume is up only 10%, you might be congratulating each other on a good month, but you have actually lost potential sales.  Conversely, if the market is down 20% in a month and you were only down 5%, you think you had a so-so month, when in reality, you gained market share.

If you are paying for Auto Count from Experian or Cross Sell from R.L. Polk and not looking at the market, you’re really wasting your money paying for these services.  You need to know what the immediate market around you is doing to accurately measure your progress or, in some cases, demise.  If you don’t know how to do this, ask me and I’ll show you.

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About dealerite/in association with AP Level 4

National affiliations of professionals who are engaged in changing the culture of the automobile retail business. Associated with AP Level 4 and Edifice Group. These companies are bringing sustainable marketing which has proven quantifiable improvements in a dealer's market share performance
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