Total Unit Sales Vs. Closing Ratios
Too many times we hear of the "Horse" on the Salesforce selling 20-30 units per mo. Should Dealerships look more towards the Closing Ratios or Total Sales to Evaluate a Salesperson?
Replies to This Discussion
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Permalink Reply by MANNY LUNA on -
Good point Glen!
A 20 or 30 car man you dont have to micro manage, on the hand when you have others that are burning ups and not keeping a Closing Ratio up to par its time to Evaluate that Salesperson. -
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Permalink Reply by NANCY SIMMONS on
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And how about total gross dollars generated? I guess the dynamics of the dealership needs to be taken into consideration as well. Is management in full control of the deal?
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Permalink Reply by MANNY LUNA on
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And how about total gross dollars generated?
Nancy we have to brake out the coffee pot on that one!
NANCY SIMMONS said:And how about total gross dollars generated? I guess the dynamics of the dealership needs to be taken into consideration as well. Is management in full control of the deal? -
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Permalink Reply by Dugan Anderson on
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You must look at both sales and closing ratio. What if your "Horse" is selling 20-30 units with a 50% closing ratio? They are probably not logging all the ups. Or what if the horse is selling the same 20-30 units and only has a 10% closing ratio? What could they do if they had a little help? One measure goes hand in hand with the other
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Permalink Reply by MANNY LUNA on
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If they want help, than I say help them only if they want it!
You see a 30 car man will want to sell more cars anyway, but they are hard to reteach and if you tell them they have no options they can make a phone call and take his or her show on the road anywhere!
I sold 40 and 50 cars a month and I never keep up with a closing ratios ,and never wanted to talk about why the customer did not close.
Reason? thats what all the weak saleman do, talk for hrs on why the costomer did not buy from them and I did not want to here all the excuses and have my carmind out of focus! I would tell them to get over it and get a another customer! you did everything right!
I can only share with you what worked for me.
Dugan Anderson said:You must look at both sales and closing ratio. What if your "Horse" is selling 20-30 units with a 50% closing ratio? They are probably not logging all the ups. Or what if the horse is selling the same 20-30 units and only has a 10% closing ratio? What could they do if they had a little help? One measure goes hand in hand with the other -
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Permalink Reply by MANNY LUNA on
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I forgot to add that the month I sold 56 cars with 190,000 front and back gross the Dealer and the Gm did not even think about my closing ratio, they were trying to find out how I did it.
MANNY LUNA said:If they want help, than I say help them only if they want it!
You see a 30 car man will want to sell more cars anyway, but they are hard to reteach and if you tell them they have no options they can make a phone call and take his or her show on the road anywhere!
I sold 40 and 50 cars a month and I never keep up with a closing ratios ,and never wanted to talk about why the customer did not close.
Reason? thats what all the weak saleman do, talk for hrs on why the costomer did not buy from them and I did not want to here all the excuses and have my carmind out of focus! I would tell them to get over it and get a another customer! you did everything right!
I can only share with you what worked for me.
Dugan Anderson said:You must look at both sales and closing ratio. What if your "Horse" is selling 20-30 units with a 50% closing ratio? They are probably not logging all the ups. Or what if the horse is selling the same 20-30 units and only has a 10% closing ratio? What could they do if they had a little help? One measure goes hand in hand with the other -
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Permalink Reply by Bobby Compton on
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Great Topic Brother Glenn. I have to agree with both! Focus on the fundamentals and the results will always be there!
When a perceived top talent leads the boards in units and gross, trust me when I tell you, they too can advance and increase.
I will always take the results no matter how they happen, but then I will hold them accountable to grow, stretch, and achieve more!
Thanks brother Glenn, for a top notch topic... Cheers B.C. -
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I got the coffee brewing Manny! I just threw that out there from my phone at my son's basketball game to see if anyone would comment! As an automotive comptroller, I tend to look at things differently. For years it would frustrate me to pay a sales consultant a bonus based on unit count while there may have been a salesperson with fewer units generated and double the gross. GSM's would justify that with "they got paid the commission based on gross"; Hence, they did not get the recognition and honor of SOM with name on plaque, etc.. (which many times means more to people than the total dollars)..Which brings me to a question I posed many weeks ago...Is it time for sales people's payplans to be looked at again?
NANCY SIMMONS said:And how about total gross dollars generated? I guess the dynamics of the dealership needs to be taken into consideration as well. Is management in full control of the deal? -
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Permalink Reply by Dennis M. Sims on
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Don't worry about the 30+ per unit Salesperson's closing ration. No one is doing that many Units CONSISTENTLY from fresh walk-in traffic anyway. They're selling their own repeat Customers and Referrals, not the people you're spending ad dollars to get in the door.
Get me 30 Units per month, Clean paperwork, all money accounted for, at least equal to or greater than the Store's Average Gross PRU front and back, and you won't even be on the "floor schedule". You can come in and/or leave whenever you want.
Someone mentioned "micro-manage"? Give me 3-4 of these people and I don't need but one Manager. -
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Permalink Reply by aaron kominsky on
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You actually need both , How many ups? how many closes? how much gross? I think accountability should be a big part of what a salespersons total revenue to the house is regarless how many units or how much gross. How many ups were blown horses blow out ups too. So take into account that maybe this person isn't tha great when it it all plays out When I looked at salespeople's results I wanted to see how close the categories were raher than wow 35 cars 100plus k in gross there is more than just that to make a well rounded salesperson how much referral buisness, be back , new, old customers that will tell me the story as well
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Permalink Reply by Fran Taylor on
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Interesting question and comments here. Close ratio is very important. To many times I see the number one guy being the first one in the dealership and the last one to leave. This guy burns through ups and sells more care because he get way more ups and has a 20% close ratio. Not good.
Who cares if you sell 30 cars a month and give them all away. Gross is just important. The number one guy/gal should have average grosses or better or they need help.
If you have a person selling 25 a month and short cuts the steps of a sale it cost you money. Not doing phone work or mailers cost you money. Thats the person who needs the help because they are willing to work.
As a manager you can't manage if you don't know where you are at as far as close ratio, gross, appointments and so on. As a manager you must be accountable for the process and the success of the store. Slow down anyone who isn't doing the job correctly and teach everyone the same thing.
As a manager all three are important and should be checked on a regular basis to keep on improving. -
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Permalink Reply by Glenn Wilkins on
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This was an actual Topic in a conversation with a Dealer when discussing his salesforce. He was using a very good Tracking/Follow Up System. He ran a report with the actual Sales/Closing Ratios for each salesperson MTD...His "Stud" Salesperson had 22 units sold with 113 Ups....Another salesperson had 9 with 29 Ups. So my question is Who do you feel is better...The Most in sales or the Best in Closing Ratio?
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