One exercise we use in our training at The Dealer Resource Group is to show our students what type of investment is required to open a franchise auto dealership.  We discuss land costs, buildings and equipment, people, and of course, cars.  Our goal is to demonstrate how much a dealer is spending just to open the doors and give sales people a place to work and earn a living - potentially a great one.  On top of that, we can add advertising to get customers in the showroom.  No matter how large or small the dealer, the financial investment is in the millions.

Over the past 32 years I've been affiliated with the industry, I've seen dealers look at their investment rise and fall in value based soley on market conditions.  When we were rocking in the early part of the last decade, dealerships were premium investments.  As things cooled in late 2008, values went down, some dealers closed, and others hung on hoping to survive.  Cutting costs was key.  But, like any good investor, there are times when making an investment when things are down will produce the greatest return.  Look at what your portfolio would be like if you bought Ford stock when it went below $2 a share.

The single most overlooked investment is right in your dealership.  In good times and bad, it has been overlooked, ignored, and even abused.  But, it wasn't invested in as it should be.  The dealers who did risk that investment not only weathered the dip in the market, they  increased their  share.  Now, as things continue improving, they are way ahead of the curve.  They chose to invest in their most important asset - the sales team.

As an expert in personal development, with ten books published on the subject, I know that the real benefit of training goes far beyond closing a few extra deals.  While sales will certainly increase, the true advantage of training is that it demonstrates the sales team is an important part of the operation.  That means you reduce turnover, which will save you tens of thousands of dollars (estimates are that each salesperson replaced can cost the dealer $35,000 in lost profits).  Dealers who regularly invest in outside training see their turnover rate drop and almost disappear.  That means customers return to familiar faces and referrals grow each year.

If you really concern yourself with a bottom line, invest in your people by setting aside a specific budget for training them at least twice a year.  The return on investment will be in the form of higher grosses, more units, lower turnover, and higher morale. 

John Fuhrman is a national sales trainer with The Dealer Resource Group and training.  In addition to authoring ten books on sales, management and leadership, he has trained over 15,000 sales professionals and spoken around the world.  you can reach him at dealerprofitsnow@aol.com. (c) 2011  All rights reserved.  Permission is hereby granted to reprint this article in its entirety including all contact information contained herein.