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About Kim Clouse About Kim Clouse Kim Clouse has been involved with automotive internet sales and process for over 20 years. He was a charter member of the AAISP while it existed and winner of the Lemons to Lemonade Award...

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About Kim Clouse About Kim Clouse Kim Clouse has been involved with automotive internet sales and process for over 20 years. He was a charter member of the AAISP while it existed and winner of the Lemons to Lemonade Award...

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Can You Define Car Dealer Reputation Management? I would like to go on record and say that the term Reputation Management for Automotive is a misnomer. Vendors can only  teach Car Dealers to discover, report, and maintain their hard earned reputation...

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SMALL CHANGES FOR BIG RESULTS IN MORALE AND PROFIT

Posted by Kim Clouse | Posted in Dealer Process | Posted on 14-08-2011

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Over the last few years, I have been away from writing my usual opinions about processes at car dealers. Of course, we all know that I have been a champion for dealers to practice over the top customer service. It was the topic of several of my speaking engagements at various events and I would like to thank those of you who attended those events to listen to me rant. Several new buzz words have emerged over this time from the flood of new automotive consultants and vendors. I thank them for making my previous points about customer satisfaction and employee retention valid.

 

It seems the more things change, the necessary adaptation by dealer principals, general managers and fixed operation managers is getting better. We really had no choice; every single entity who listed our inventory, labor time guides, and overall manufacturer information, listed it with everything available they could get their hands on. It was also advertised on those manufacturer sites, social, and every available PPC slot money could buy. There is nothing wrong with that because once the consumer got a sample of how they thought us dirty car dealers and sales people were stealing from them, they starved for it. Thinking about this is what tossed me back into the world of voicing my opinion. Those of you who know me know how much I love sugar coating and snake oil. In a bit of a twist, I decided to land on our customers for a change just this once.

 

This kills me and we have all heard it; you have other invoices (although it is printed on the sheet they arrived with,) the internet says my car is worth another $2000.00 (we lie if we explain, even though it is like new, we have to inspect it to sell it.) The dealer across town offered me a better deal, on and on. Fine; if the customer does the math for just a mini deal paying sales $200.00 minimum and with the special rates finance gets $200.00 without products. A 10 car month yields the salesperson a whopping $2000.00 plus any bonuses. Wow, we are really taking advantage aren’t we? Sure, there are dealer incentives and management driven spiffs but not enough to raise wages to the next tax bracket for a sales person or perhaps even management. Most people who are complaining about this would never work for the money they are demanding we settle for. That brings me to the title of this post about small changes.

 

Money motivates people, even small amounts. Just put up a $10.00 spiff for verified appointments that show and see what happens to traffic. If we work the formula at the dealer principal and general manager level, we can determine how many extra cars we need to sell above our average to offset any amount of payroll increase. If we do this in small increments over time and adjust to the trends we do more than spend money. Our sales go up and overall morale right along with it. Good morale translates to better customer service which translates to more word of mouth and increased sales storewide. More sales, more profit, more money = better morale for everyone involved. On the other side of this coin, if I am a general sales manager, GM or used car manager there is no way I am sharing my income with the asshats that just wait all day on something. Fire their ass, quit hiring people that can’t type or at least spell check. Make your veteran salespeople train the ones you need to keep to earn the extra cake. If they do not take to the training or the Pro’s do not want to teach, do not give them incentives. Make it mandatory! Process and policy are nothing without consequence, good or bad. They are just more words that pass right through their head. I feel these small changes will improve the overall status of your store. Then we can display it on Dealer Report Cards.com to prove it.

 

KC

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