Never have so few sold so many cars...in such a short period
of time...with such non-existent grosses.
In the words of Groucho Marx "If we don't sell too many of
these, we might break even."
In the last few weeks I've spoken to hundreds of Dealers,
Sales Persons, and Managers about the factories 'employee
pricing to the public' sales.
If I had to summarize the majority of those conversations
the theme is... "We're selling lots of cars and trucks and
we're not making any money. Our sales people are quitting
and morale is terrible. How can we hang in there if this
continues?"
"Jim, help, please, we're getting our asses handed to us
here!"
Okay, let's look at the realities of the situation...it's
here and we're going to deal with it. The factories are
deliberately trying to move the market to 'one-price,
no-haggle' which is an idiotic monster mistake that will
guarantee we will lose sales and destroy profits. It is a
mentality that will bring the winners and achievers to their
knees and will celebrate the dealerships who are weak,
losers, whiners and wimps.
Truthfully, I believe this thing will die and go away all by
itself after the competent Dealers barbeque the factory guys
(gals) again for their lack of retail savvy. They just don't
get it. We need profit margins to negotiate and structure
deals with the banks. These over-educated factory types
lacking street smarts do not have the ability to relate to
the 'average Joe' that buys their product. It's stoopid.
SO...here's the plan. First of all, forward this email to
virtually everyone you know in the car business. We need to
start a viral campaign where everyone keeps forwarding this
thing around. Do it right now while you're thinking about
it. Send this email on to everyone you know...to your entire
list.
NOW...let's tighten up our processes. You can't afford to be
sloppy...not now.
Starting with your 'Road to the Sale' process...you need to
take your sales departments into training classes for at
least an hour every day.
You can no longer afford to make exceptions or overlook
those sales persons who take shortcuts or deviate from the
business processes you've laid out.
a) Fire Deviators and Prima Donnas b) Fire Bad Attitudes c)
Fire Managers if they are too weak to manage their sales
force d) Dealers who are weak should be given a golf bag and
a beeper 1. If we need you...we'll call you 2. Now is the
time for you to take that long vacation
It is imperative...as in not even up for debate...you've got
to shut down the sales department from discussing figures
prematurely. We know people are here for the deal BUT we
don't need to be discussing figures until they've driven and
selected a vehicle. Nobody gives the customers figures
except the managers. If you have sales people 'fender
trading' or 'ball parking' figures and interest rates...fire
them immediately with a bad reference. All deals start from
the management authoring the first set of figures.
Remember, we need to make money from all of the profit
centers right now. If a sales person (or Sales Manager)
consciously sabotages the F&I Department's opportunity to
sell their rate, products or services, then that behavior
should be dealt with severe discipline...not optional. F&I
is the primary profit center now...not the sale of the New
Car or Truck.
Note: You never need to lie, or cheat, or sneak or deceive
to sell Finance BUT, by the same token, the sales department
needs to be sure that no one does or says anything to
prejudice the customer against F&I Sales before the 'Quality
Turnover' to F&I. Everything we do can be done ethically and
legally without sacrificing profits.
Sell Payments: recent national research proved that 87% of
consumers are buying their cars and trucks primarily on the
monthly payment amount...NOT on the price, or trade
allowance.
Be In the trade at the right number! Once again, spend some
time with the customer examining their trade with them. Hit
the trade LOW. Remember, most customers are trying to buy
our car or truck for less than it's worth...so let's try to
buy their trade at a bargain price. There's nothing immoral
or unethical about hitting the trade low to make a better
profit. I am not saying to gouge or be ridiculous but hit
the trade at a bargain price to start with. Hint: Don't tell
the sales person what you put on the trade until the deal is
over.
Sell Accessories AFTER you've made the deal.
Train your sales people and managers to present a menu of
after-market wheels, tires, sound systems, bed liners,
bumpers, back up warnings, video centers, grills, gold
packages, etc...do this after negotiations before F&I
Turnover. You can make a profit by adding non-factory
accessories at non-negotiated full price after you've locked
in the sale itself at the 'employee discount' pricing. I
like to use E&G Classic Grills. Do Not sell accessories
during the deal because you'll only end up throwing them in
the deal at a discount.
Pre-mount some addendum options on selected units. Remember
this is only legal on 'hard adds'.
You want to maximize profits now! Send Me Your
Managers...all of them. Be sure your F&I Managers and Sales
Managers are fully trained and actually doing what they were
taught in real situations, with real customers.
Those of you who have attended my Management Schools in the
past; You know that I teach high-profit Sales Management and
high-profit F&I Management Schools.
My Menu-Selling F&I School is brand new, state of the
art...High Profit...totally legally and ethically compliant.
If you send me your best Managers, I'll send them back
raving with their hair on fire. I'll show you immediate
measurable giant profit increases. You want references;
we'll give you hundreds of recent references who will plug
in the dollar amounts and increases.
Remember our competition sells training...we don't sell
training. We sell measurable results. You can see the needle
move...immediately with our stuff.
Come to Las Vegas and learn...The All-New Mastermind F&I
School and The Sales Manager School are taught by me, Jim
Ziegler, personally...AND...The next one in August is in Las
Vegas at the MGM Grand...that means cheap airfare. As
always, Dealers are free.
You can still be at or above $2500 to $3000 per unit
retailed in today's environment if you're firing on all
cylinders. If you're going to operate at maximum efficiency,
then you're going to have to be focused and serious about
your Management Style...In other words, this is not the time
to take any 'crap' off of anybody.
IF you can't get your managers to me right now (or if you're
too cheap) then BUY MY VIDEOS and require that your people
watch them and role-play daily. I have a new series called
the Master Management Series...as well as The Ultimate
Professional, which is the 8-hour DVD set for sales people
training.
Jim Ziegler
Contact Jim Ziegler at 800.726.0510
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