How do I prepare for the rebound in the economy?
By: Mark R. Dubis, Director of the Dubis Group
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With the OEMs cutting dealer ranks, the dealers left standing need to take action to prepare for the rebound which will be coming over the next six to12 months. Our industry has been hit hard but dealers with solid business practices in place are weathering the storm better than many others. Here are a few suggestions for your consideration.
Start hiring more "A Team" players. Be honest some of your sales team members are not the sharpest crayons in the box. With good dealerships going out of business, now is the right time to recruit sales professionals from those stores who have a proven track record. These people have years of experience, often a rolodex of customers who are loyal to them, and a desire to find a good home where they can be appreciated.
Think about an Open House Recruitment night and send out invitations or advertise in the classifieds telling experienced auto sales professionals that your store(s) are actively looking to build ranks but only from the "best of the best." You also want to ask your best salespeople if they know of associates or would like to refer one of these winners to your HR team. Consider offering a referral program and pay $1000 if you hire one of these candidates. Of course the fee is paid after 90 days of service is completed by that candidate.
Change the Compensation Focus. Dealers are spending entirely too much money to bring new customers in the door. Encourage your sales team to work your customer and prospect base. Pay a larger commission to your sales team for repeat customers and customers that are/were referred by an existing customer than you pay for a new or walk in customer. We know sales people always "work" their pay plan, and you will see a renewed focus on working the phones and following up with existing customers.
Consider more family friendly schedules. Our business is known for crazy hours and demanding "bell to bell" schedules. Is it any wonder the turnover is so high? Talk to your staff and find ways to give every employee enough quality time away from the store, so they don't get burned out. Where can you cut some hours? Are you still open on Sunday? I regularly patronize Chick-fil-A, not just because I love their sandwiches and lemonade, but because they are closed on Sunday to allow their employees to have time with their families. And since we need more women in vehicle sales, consider allowing job sharing to cover your hours, and that will be more family friendly to women with children.
It's pretty clear that we can't continue doing business as we did in the past. If you want to be around for the next few years, the changes need to start now.
Mark R. Dubis works with automotive vendors and dealers to improve their marketing performance. He is a 26 year veteran of the automotive and finance business. www.dubisgroup.com
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