Who’s at Fault for the Talent Shortage in Automotive Sales?
Rarely do I come across a dealer today who claims to have a sufficient number of vehicle sales personnel. When adding the word “quality” to “vehicle sales personnel”, the dealers’ claims of staffing success turn pretty ugly. Why is it so difficult to attract quality people for automotive sales positions?
Several years ago, I was working with a client in Southern California and conducting one of my rare sales training meetings. The subject of the meeting was Developing and Engaging Your Circle of Influence. I had just finished explaining to the sales staff that, “everyone you know needs to become aware that you are an automotive sales professional who wants to earn their business!” One member of the retail sales staff (whose dealership career was immediately shortened that morning) said, “I’m not doing that!” The GSM asked, “Why,” and the salesperson responded with, “I don’t want my neighbors and acquaintances to know that I am just a car salesman!”
Was that salesperson unique in his opinion of his job? I think not! There are probably far too many people in our vehicle sales departments who haven’t taken ownership of their profession and aren’t sincerely proud of how they earn their living. And I think that’s the fault of dealers, GMs, sales managers, and automotive resource professionals (such as me) who haven’t done an effective job in recruiting, onboarding, training, nurturing, and, in general, “connecting with” today’s potential automotive sales professionals.
There seems to be an unrelenting perception that automotive sales is a “last resort” job, and we have allowed that perception to exist and grow. We should be tired of it, and we need to do something about it! When we convince someone to choose an automotive sales career (or when a qualified applicant “drops into our lap”), he needs to clearly understand that he’s not settling for a second-rate job. Automotive sales is a challenging profession that a person can and should be proud of. And it comes with many rewards.
- Unlimited income potential: Few other jobs allow an individual to determine how high his income will go, often even surpassing that of his sales manager.
- Independence: As long as the car salesman is meeting or exceeding expectations, most “good” sales managers will let them set their own goals, create their own plans and manage their own time.
- Sense of satisfaction: This comes from being an automotive expert and helping people solve their unique transportation problems.
- Personal growth: With markets, technology, and product offerings constantly evolving, the automotive sales professional is always growing and learning something new.
I know that you already know all this, as I do. Since we know it, why don’t we do a better job promoting it?... Not only in our recruiting efforts for new hires…but in “re-recruiting” efforts with our current vehicle sales personnel. Here’s a question for you: Within your current vehicle sales staff, how many would you really wish to see participate in a “reverse interview” process with a potential new sales hire that you have already pre-qualified? I would love to hear from those of you who are happy with your answer.
Garry House
gha4you@gmail.com
(561) 339-0043
Replies to This Discussion
-
Permalink Reply by Steve Gerhartz on
-
Until compensation plans move away from the commission on PVU profit dealer's are destined to struggle. The same applies to management compensation. What Dale Pollak refers to as the "silo" model where each department and it's associates are paid only on departmental profit is crippling dealer's and most either do not recognize it or are unwilling to change. Being unwilling to change in the world today means certain failure.
-
Permalink Reply by Garry House on
-
Your input is "spot on," Steve. Thank you for contributing to the discussion!
-
Permalink Reply by Brian Bennington on
-
Interesting post Mr. House. However, the answer is much too complex to cover in five paragraphs. There are as many personal reasons as there are reps, and that doesn't include (for want of a better description) the "lack of spirit" plaguing our millennial generation. That's a downside to the growing "automation" of our society. People have never had a better opportunity to let a machine do it rather than figure it out for themselves. As to your points, let me give you my take on them.
(1.) Unlimited income is definitely possible, but it requires diplomatic skill as well as selling skill. If you do better than the rest of the sales team, you best work extra hard to endear them to you. Believe me, it's not easy when you're getting more production then them and, as goes human nature, they really don't appreciate it.(2.) There is nothing more common then a sales manager who "begrudges" any rep who does better than the mgr. expects. That's why top performers are often identified as "high maintenance," primarily because the rep is working faster than the mgr. wants.
(3.) Sense of satisfaction? If older sales reps influence younger sales reps, you can imagine the impact it has when the most important and most "talked about news" on the floor is how some rep "buried" their customer with an outrageous gross. Personally, I believe a sense of satisfaction varies rep to rep.
(4.) Same goes for personal growth. A rep can "bury himself" with product knowledge, but that doesn't always improve the numbers. Everyone who reads this and has sold cars has worked with some "new guy" who knows next to nothing about the product, but outsells everyone. The answer? He knows how to sell!
-
Permalink Reply by Garry House on
-
Great input, as usual, Brian. I fully agree with "your take" as well.
-
Permalink Reply by Ron Rozier on
-
Garry, While I agree with all of what you wrote and what others added to the conversation. However a huge problem in hiring and retaining good sales people is that the dealer and the factories refuse to acknowledge who is making them rich.
Selling and delivering a vehicle today is hard work and with new vehicles the commission is very low, now pre-owned commissions is a different story. The factories are always willing to make sure the dealer makes money, but they are so reluctant to give spins to the sales consultants that would make selling a new vehicle worth while. I have made this point to more than one manufacturer and the normal response I get is* Well your managers need to make sure they hold gross. Now that is a pretty dumb statement since every manufacturer has furnished every one under the sun the actual cost of the vehicles. When a sales person works hard and sells 15 units in a month and only brings home say $3000.00 that is sad. Now I realize that a lot of dealers have woken up and do have better pay plans, such as the dealer I work for now. But the sad truth is that too many dealers are still too greedy to see the forest for the trees. If you want top talent you have to pay for it or they will either leave the industry or keep searching for that one dealer that understands and pays well.
-
Permalink Reply by Garry House on
-
I totally agree, Ron. That's why my current consulting focus is on Dealership Compensation, Implementation, and Management. Thanks very much for your input.
© 2024 Created by DealerELITE.
Powered by
