"until management realizes that the pay plan is hurting the business's ability to survive, nothing will change. Can someone tell me how to build relationships with this tension? NOT EASY."
Brian's quote above Ithink is the key. I would be surprised if ten years from now any dealer at all survived just on profits from car sales. The margins just seem too fine now. But, I think the way to get rid of the adversarial tension might be to start with the idea that car sales do not have to be singular events.
I really like Tim Morris' idea of having a service manager contact the email contact who was "shopping" the MB C-class sedan. In my opinion, limited as to being a car buyer, and few at that. I would think MOST folks do not buy on price! Heresy from someonw who shopped like I did... I think Tim is absolutely right when he suggests asking, besides price what other things are important to you?, and building value from their response! But I would go one further, I think the building value happens BEFORE you get them to your door. And if you do it right, maybe its the very reason they show up to begin with? How about a series of ads, not about price? Why not take all your newspaper budget for a month, and lay out a story......... of how you "partner with your customers"? Show the value of your dealership, instead of the 'price" of a car?
Dealer value seems to be the way to go in my view (I admit to being a singular persona, and it may not work for everyone--good point Wayne)
What if cars became so complicated you could not fix them yourself? Oh yeah, we are there now, lol. So how about a labor rate that induces me to get ALL work done, forever there? Not just the waranty work that is paid out like the US health system now? How about a true "market rate" for repairs. Would not the average consumer PREFER y'all to work on y'alls car? You are the experts in that particular brand/model right? You know the car best, since you have serviced "my baby" since I bought it from you?
If I owned a car site, and I think it would be a tough tough thing to do with others not on board with the concept. I would have pretty good prices right off the bat. No haggling. NO big commissions for sales. I would pay sales folks a salary, with a small token if you sell a car. But, if dealer hits goals monthly? Then a bonus to everyone! Let the guys on the floor feel like a team instead of competing with each other and internet department for commissions! And then each salesman would have an interest in handing me off, or finding someone else who might be able to "help", right?
My entire campaign would be one of communicating a "partnership" with the customer. Carl's book was good at that point I think. I am VERY price conscious, but would have paid extra for a Sewell vehicle. I am sure many others would also. My plan as a dealer would not be to sell the most cars necessarily, but rather to sell to the type of customer I wanted to attract. Tom Thumb does not market to Sack and Save customers, and truly might not even want them in the store. Not every Wal Mart customer is welcome at a Niemans, right?
So, Checkered Flag may be getting my "loyalty" over life of car, while Earl is getting a "full commission" from a different type customer?
Again, I make it sound easy, I do realize its not, especially for US nameplates that are overdistributed.
steve
