TALK TO ME
There usually are many reasons why a dealership fails or does poor. To me one stands out far more than the rest. Just curious what you think the main reason is that dealerships fail or does poor. TALK TO ME.
Replies to This Discussion
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Permalink Reply by Fran Taylor on
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Douglas R Manley said:Reply by Douglas R. Manley
The number one reason dealerships fail is:
THE DEALER HEARS, BUT DOES NOT LISTEN.
I have been affiliated with four dealerships either as an employee or a consultant that went under. All four dealers said to me before they closed the doors:
"If I had only listened." Case closed.
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Mr Manley it is unfortunate but that happens a lot. Hopefully your message and others like you will help dealers before it is to late. Thank you sir.
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Permalink Reply by Douglas R Manley on
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The number two reason that dealerships fail is the proverbial rock. An excerpt from my book, DUH! best explains the:
THE PROVERBIAL ROCK
“If you have always done it that way,
it is probably wrong”
Charles F. Kettering
Somewhere in every dealership, bar none, lurking fat, dumb and happy in the shadows is the growth stifling, suffocating, proverbial rock. Nobody knows why it’s there or how it got there. The reason for its being was forgotten eons ago. I suppose at one time its existence was necessary, and “bang”, there it was and it’s still here. I guess the best way to describe the rock is to ask:
The Proverbial Question: Why do we do it that way?
The Proverbial Answer: We have always done it that way.
YESTERDAY TODAY TOMORROW
THE ROCK LIVES
When you couple the #1 reason, “they don’t listen,” with the #2 reason, “we have always done it that way,” be sure the last one out of the building turns the lights out.
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Interesting point Mr Manley. There are three reasons that make people change.
#1 People get sick and tired of being sick and tired.
#2 An event of some sort that makes you change.
#3 Some people are always looking for ways to do better.
Take your pick. They all will work.
Thank you sir for your comment.
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You are right on the money.
Have a good day!
Fran Taylor said:Interesting point Mr Manley. There are three reasons that make people change.
#1 People get sick and tired of being sick and tired.
#2 An event of some sort that makes you change.
#3 Some people are always looking for ways to do better.
Take your pick. They all will work.
Thank you sir for your comment.
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Great point Mr Sedillos. I couldn't agree with you more. Not all managers are that way.
I recently worked with a dealer that has 11 locations in small towns in Pennsylvania. After finishing our 20 month program he offered me a job to run all 11 locations because of the profit increase. I wasn't moving. So here is what Mr B does to get good managers.
He promotes from within when possible. The sales people that deliver 30 plus cars a month get to be managers of the new stores if they want. Selling 30 plus is pretty darn good considering there are about 15,000 people in the small towns. When they become managers they have an option to buy stock in that dealership. This way they can make more money, be part owner and lead by example.
They bought a Ford store 14 months ago that was selling 45 a month total. Last month they delivered 146. I believe it was from good managers knowing how to build a following. There are a few dealers who hire managers this way. But for the most part you are 100% on this one. Thank you for your comment.
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Permalink Reply by Scott Donaldson on
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I think the answer to that question is consistency. Most dealerships are consistently "inconsistent", meaning, that normally there is no specific process put into place. The way I evaluate a new dealership that I am consulting for is by interviewing all of the sales staff and sale management individually. I have everyone that I meet with with write down the "Steps to the Sale" that they are supposed to follow. It is rare that everyone writes the same process. Even between Sales Managers, I have seen differences. If the Managers are not on the same page with each other, then the sales staff will not be either. This is why turnover is so high on our sales floors. When training and support are lacking, people jump ship......
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Permalink Reply by Lane Campbell on -
Wow! Love the merit based, long-term compensation example, Fran.
In my view, all dealers (and any business owner for that matter) face a constant balance of short-term strategies vs. long-term strategies. Some things pump the coffers, and thus the statement, but can kill a dealership in the marketplace for numerous reasons.
Main indicator that a dealership will fail? Long-term adoption of short-term strategies.
Fran Taylor said:Great point Mr Sedillos. I couldn't agree with you more. Not all managers are that way.
I recently worked with a dealer that has 11 locations in small towns in Pennsylvania. After finishing our 20 month program he offered me a job to run all 11 locations because of the profit increase. I wasn't moving. So here is what Mr B does to get good managers.
He promotes from within when possible. The sales people that deliver 30 plus cars a month get to be managers of the new stores if they want. Selling 30 plus is pretty darn good considering there are about 15,000 people in the small towns. When they become managers they have an option to buy stock in that dealership. This way they can make more money, be part owner and lead by example.
They bought a Ford store 14 months ago that was selling 45 a month total. Last month they delivered 146. I believe it was from good managers knowing how to build a following. There are a few dealers who hire managers this way. But for the most part you are 100% on this one. Thank you for your comment.
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Permalink Reply by Luis Sahagun on
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The General Manager..I agree.. When there is poor leadership or none at all then everything else fails. Especially when your GM is involved in shady practices and tries to envoke you onto doing the same!! I agree wth Tobias, you get a smart person and train them well and this will make for a strong sales team. Poor leadership is common, I exprienced it first hand! If a Dealership wants to succeed, then they need to be progressive in their practices and attitudes.
Thanks for reading
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I agree with you and Mr Campbell. Very few managers really train. More meetings than actual training that is needed badly. I have managers tell me that they are not good trainers. Thats ok just get someone who can. It must be difficult for a manager or owner to pick a good trainer. I know they are out there. Thank you for your comment.
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Permalink Reply by Juanita Kiesler on
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Great topic Fran. Owners that support a solid foundation of continuous improvement set the pace
of a business. Dealers should be constantly learning, evolving with the times and setting the example.
Some dealers fail because they haven't a plan!
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You tell it like it is Juanita. I couldn't agree with you more. Thank you.
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