Show them the money
Are you looking for a way to spice up your product knowledge training?
Tell your sales consultants in advance to prepare for a quiz on a particular model in your franchise line. On the day of the quiz, circle everyone around the vehicle and place a $100 bill on the hood. Pick a place in the circle to start.
To stay in the “game” each sales consultant is required to produce a product feature, one that has not been given before. If they repeat a feature or fail to come up with a new feature, they are out of the “game.”
The last one standing gets the money! This is a different, fun way to teach our sales consultants about our products.
— Scott Norman
Skip internal parts and labor discounts
Do you still discount parts and labor to your internal departments?
One of the leading arguments for discounting internal parts and labor is that the vehicle departments are our best customers. Because they are our best customers, they are entitled to a better price.
Let's examine the reality of how we treat our best customers. In most cases, the used-vehicle department brings in a vehicle for service; typically, that vehicle is placed in the back of the line, and your service department will get to it when they can. What would happen if you charged your vehicle departments full retail or matrix retail and then because they are your best customers you rewarded those departments with best service? Those vehicles would go to the head of the line because internal departments are the “best” customers.
Maybe providing world-class service for a price is a better way to operate than discounting price, and consequently performing services when the shop can get to it.
— Fred O'Halloran
Make more money on used vehicles
For most dealerships, used-vehicle inventory is between $1 million and $5 million. That's a lot of money tied up in metal. Let's review some basics that will help you to maximize the use of your inventory dollars.
Each store in each market typically has a unique inventory mix for maximum return. This can be analyzed by historically tracking what units, based on makes and models, sell the fastest for the highest return. Conversely, which ones typically linger on your lot?
There are some excellent tools available in the marketplace that constantly feed back this information. Essentially by tracking this data you are creating your “inventory stocking formula”.
When you have your dealership stocked with vehicles that sell fast for the most gross profit, you are able to maximize the dollars you have invested in inventory. This must be analytical and not an informal, “Well, I think these units sell the fastest.”
Investigate the inventory management and tracking programs available and invest in the one you like. Then watch your return on inventory investment improve.
— Chris Leedom
Money-making minutes is provided by NCM Associates in conjunction with the Automotive Satellite Television Network (ASTN).