Does Automotive Sales Need to Be Unionized?

What is your response time? A better question might be, “do you know your response time?” If you don’t you need to figure out why you don’t and get with the times. The national average is 5.4 hours from when a lead hits a dealership to when the dealership responds. That is the only aspect of dealership, customer response rates that has improved over the past couple of years. Ninety percent of leads, however, are still “lost opportunity” leads, which is an overall decrease from 2005 where it was 92%, but can you believe that 90% of customers are lost due to the lack of training. Where is the follow up?

 
There are several reasons why this occurs. One of the major reasons is the lack of attention owners and general managers put into their stores. The keys to becoming a top performer is to attend to your staff’s needs and making sure they are trained for the situation at hand. I’ve seen so many times and talked to too many salesman that throw me for a loop when I ask even a simple question. The dealerships have undertrained sales staff to handle today’s customers. They throw them into a world that communicates online without a computer to communicate. I think it is time that someone organizes an Auto-Sales Union to set the standards of how a trained automotive professional should be.
 
Remember the 80/20 rule, 80 percent of the money is made by 20  percent of the people, because the other 80 percent are lazy! My question is, what if it wasn’t that the 80 percent are lazy, but that they lacked proper training. I have met a lot of people that work in the automotive industry and there are no standards. Eight to ten car sales per salesman is the national average. I think that is a set up for failure. There are 30-31 days in a month, what could you possibly be doing for nine hours a day, 216 hours a month, that you can’t get a hold of 200 people and close 10% of them? Figure that out. 56 hours a week. 18 cars times three hours per sale equals 54 hours, a salesman should be selling 15-18 on average, if he has proper training.
 
My training seminar is for three days long and it is only the beginning of what you need to do. I will show you how to create good habits, but it will be up to you to follow through. If you can’t be patient while you create the habits that are needed to be successful, you’ll fall right back into the cycle of insanity: doing the same thing over and over, the same way, and expecting a different result! Wake up and get ready, because my class starts off at 6 AM!
 
Reid Richards has been a sales manager, internet director, internet sales manager, and has spent the last five years building successful internet departments for dealerships across the country. He is currently the operator for Marketing Consulting, LLC. For more information call 888-896-6153, visit www.increaseyourleadsnow.com, or email reidrichards@automarketingconsulting.com.
 
 
 

 

 

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