Is The Road to the Sale Obsolete? by Jim Ziegler
Is The Road to the Sale Obsolete?
A lot of conversation these days by 'New Age' - 'Next Gen' - car people saying the 'Old School' sales processes are no longer valid with today's consumers.
Just the reference to the term 'Old School Car Guy' is an insult designed to conjure up mental images of an extinct Mastodon being sucked down into the tar pits after eating the last brown shriveled leaves off of the trees. The hidden message in these terms is that you're stupid and we're smart... an intimidation by negative labeling.
In truth, the retail car business is forming sides in the turf wars between the techies and the traditionalists. AND, nobody is giving ground.
I have just returned from an extended 'road trip' of twenty-three cities in fourteen weeks, coast to coast, actually working in dealerships... speaking at major conferences... and performing consultancies. In other words, I am seeing a lot of best practices - what does, and more importantly, what does not work.
To quote myself here: "Average People with great processes will produce incredible results." You can't manage a high-production dealership with an army of 'Prima-Donnas' all doing their own thing without structure or management.
Even though I have embraced technology as part of the sales process; it is not the entire process. Automobile Sales still have to have a structured process from 'Meet and Greet the Customer' through 'Deliver the Vehicle and Follow-Up'.
I don't believe there will ever be a day when technology will entirely replace the human relationship in car sales. The things we do and the words we say are our toolbox.
Time after time, I've experienced dealerships' transformations to much higher volume sales and much higher profitability when the management installed and enforced a "Sales Culture' with defined step-by-step, measurable and accountable sales processes.
Unfortunately, most dealerships have never quantified exactly what they expect sales persons and managers to do and say as they interact with your customers. Oh, we have a vague idea BUT very few managers can tell me their exact process... and very few can honestly say their sales professionals are doing it the way they describe it.
That's why I consider myself extremely fortunate that my career began as a car sales professional and that my first management position was as an F&I Manager. If I owned a dealership today, I would require that all of my Sales Managers had F&I experience. A great F&I Manager is a master of 'The Process' and has to be a precision closer with a stop watch running.
Is it any wonder the sales department is always amazed when the Finance Manager repeatedly 'bumps' the customer after they thought they had all the money. Perhaps, processes and training had something to do with it.
I've always said that F&I Managers have more skills, more schools and more specialized training than anyone in the dealership except the technicians.
Jokingly, I've always said... "Most Sales Managers learned their job by watching somebody who got fired."
We have the tools today to achieve 'super productivity'. There are great CRM programs available to organize, measure, and manage sales and follow up BUT, these programs are only as good as the managers who are responsible for the results. Technology is an enabler and a productivity accelerator but it is only works if competent sales management is on top of it.
So in other words, there is no 'Old School' or 'New School' ... there are only processes that incorporate both. 'The Old Car Dog' that resists and fights everything new, or the 'Next Gen' with no track record who believes they know it all...both have to bend and adapt to 'The School of What Really Works' .
One characteristic shared by virtually every successful dealership in the country is that they have well-defined sales processes and that they require every sales person to follow these processes without exception.
So, the original question was Is The Road to the Sale Obsolete?
The answer is emphatically... NO
AND the answer is also ...YES
The trick is teaching managers to be managers and sales professionals to be students of their profession... and for both to be masters of the processes.
Keep those emails coming... JIM
Comment
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Comment by Ron Rozier on June 28, 2015 at 4:06pm
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Thank you for that accurate and well informed article. I am glad to meet someone that feels the same way I do. Most the teckies out there think that I am against technology and I am not, in fact I have always embraced it. However their version of what it can and will do for a dealer is very far from the realty of life in Automotive sales.
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Comment by steven chessin on June 26, 2015 at 7:44pm
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Thank you all - all fascinating insights.
"Old-school" is a "left-handed compliment". (insult) that assumes someone got stuck in time with sales fundamentals and does not understand the "wide world web" -- and uses a granny phone with big buttons.
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Comment by David Ruggles on June 22, 2015 at 12:12pm -
RE: "Is it any wonder the sales department is always amazed when the Finance Manager repeatedly 'bumps' the customer after they thought they had all the money. Perhaps, processes and training had something to do with it."
Processes and training certainly has something to do with it. Plus, there is a certain magic that goes with a "second face." Buyers can't give up more money to the salesperson/manager, after once standing their ground, without seeming to have lied in the first place. Removing those the sales department, and inserting a completely different person, alleviates that customer fear. Its always better if the F&I manager is introduced as a clerical person instead of an F&I seller. It seems our industry has become lax in this area. Is it because F&I manager's egos can't handle it? Forget F&I Manager.
Your comments are always appreciated Jim. You are the voice of reality and reason.
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Comment by edward l whiteman iii on December 30, 2011 at 6:39pm
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Absolutely over the years as a GSM and GM I preached the value of an F&I background before you could work my desk. F&I teaches you structure and organization and a sense of urgency. By the time they get into F&I customers are ready to leave it's the F&I Managers job to protect the dealer, offer every product everytime and is still be expected to make money. The new high tech programs for desking, appraising and bringing in customers are great but they will never replace an enthusiastic, organized and knowlegable salesperson. who follows a process and gets the customer to like and trust them.
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Comment by James A. Ziegler on December 27, 2011 at 4:07pm
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OMG Larry Sherstad... I lost track of you. It is wonderful to see you here...JIM
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Comment by Larry Sherstad on December 27, 2011 at 3:30pm
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Hi Jim,
It is amazing the number of dealerships I visit during my consulting or training sessions that do not have written sales processes. Process deliniate how the dealer wants something done, becomes a training tool, becomes a measuring tool and removes any "I didn't know", excuses! I think the next great opportunity for the dealership sales department and management is to embrace the CRM tools and make them work to the advantage of the Customer and the dealership, hence the place for the great Sales Manager and General Sales Manager.
Maybe a new session for the Sales Manager's course!
Hugs and Kisses to Debbie.
Larry
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Okay Honda has taken a courageous stand and banned TrueCar pricing with it's dealers. I know for a fact VW is strongly considering doing the same. I hope VW realizes that they've just began to get some incredible momentum in the market AND now is NOT the time to allow an invader like truecar to devalue the brand in the public's eyes. No matter what you sell, TrueCar cheapens your brand.
Group 1 made sure their dealers cancelled after looking at the exposure of having these people rooting around in their DMS, especially with AutoNation's CEO on the board of Truecar...
Group 1 was smart enough to see the writing on the wall and run as from away from these people as possible. When is Asbury, Penske, Sonic and others going to awaken and realize they people appear to be a huge threat? Even large private groups like Rick Hendrick should be looking at the evident danger we're all perceiving here.
Where are Ford, General Motors and especially...where is Toyota in this escalating skirmish? I am embarrassed that mark Reuss, president of general motors would actually go to TrueCar Headquarters and play with Painter showing him a 750HP Camaro.
I did not mention Nissan because their dealers are using Truecar to sell way below invoice so they can collect stair step money. You guys are smiling now BUT if Nissan takes away the program, you're screwed royally because of the benchmarks you set with TrueCar making your brand image "Ultra Cheap Nissan"
Does Mark Reuss NOT understand that his dealers are being raided by these people cheapening the product down to unprofitable and below? I find it hard to believe that Reuss would publicly suck up to these people if he truly understood.
There are a few investigations of TrueCar popping up here and there AND we're still urging dealers to put more emphasis with your dealer associations to get off of the sidelines and represent us... I know a couple of associations are doing their best while others limped off of the battlefield without firing a shot... weak.
I am especially disturbed about Toyota staying quiet while Honda takes a stand. It's like sending a message that Toyota has less value.
This thing will gather increasing momentum and I predict TrueCar will find some high-profile weak suck who will sellout their integrity for the publicity or hard cash and take a stand publicly backing them and betraying dealers.
Of course, this is all a lot of conjecture, speculation, supposition and opinion...I might be wrong. :)
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Comment by Mike Phillips on November 30, 2011 at 10:04pm
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Great post as always Jim!
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Comment by Michael Deville on November 28, 2011 at 6:55pm
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Thanks James.
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Comment by Stanley Esposito on November 28, 2011 at 6:41am
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Jim,
Thanks for the great post! As usual a great read!
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