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AUTOMOBILE SALES MANAGER'S COMPLETE SUCCESS FORMULA
AUTHOR: McCormick, Jon W.
Volume * Profits *
Customer Satisfaction *
Money * Health * Personal Achievement *
You can energize your career with the:
"Automobile Sales Manager's Complete Success Formula: A Current Guide to Managing a Profitable Car Dealership"
In this book, veteran sales manager Jon W. McCormick gives you a powerful new tool to help you solve the most frustrating problems, accomplish goals you never thought possible, and find long term personal motivation. This book can help you to:
* Build and train an ideal sales force.
* Control and maintain inventory with minimal effort.
* Stock the hot, hard to get cars, with the factory wanting to provide them for you.
* Develop the highest levels of customer satisfaction.
* Use hard hitting, effective advertising, spending less than you do now.
* Develop a winning attitude.
EVALUATING YOUR TEAM
Know the fundamentals. The first step you should take in your new job is to become acquainted with your staff. The following questions are not only basic elements you'll need to know to manage them, but are vital to know when your dealer asks about them.
1. How many "UPS," or customers a day, visit your store?
2. Categorized by monthly and daily sales, how many cars have you sold, both new and used, and what is your goal?
3. Based on the present travel or sales rate, what is your projection for total sales of new and used cars?
4. What is your gross average profit for new and used cars?
5. How do your individual sales people rate in surveys of customer satisfaction conducted by the manufacturer?
Although very basic, few managers can give specific answers to these questions. However, the information with which to answer these questions is available in your dealership. If you don't use this information, you will he nothing but a leaf tossed in the winds of the "unpredictable" automobile market. You must have the ammunition to manage your people by showing them the undeniable truth of their production in numbers.
The following should be part of your evaluation of your sales people. A sales person does not fail to reach his goal at the end of the month, but rather the beginning. If your people are not achieving the type of goals you desire, it is because they are failing from the first day of the month. Unchecked, their performance will decrease. You must discover the problems and take action. If you do not take immediate action to solve the problems, they will only get worse. Discover the facts and move on them. Let's take an in-depth look at these five critical areas.
How many "UPS," or customers presently visit your store each day? Having a count of the number of walk-in prospects, and who is bringing them in will provide invaluable management information. First, it will help establish the true closing ratio of your staff. Following are several figures which are accepted as accurate measures for walk-in customers:
10 prospects mean 8 demo's
8 demo's mean 4 write-ups
4 write-ups mean 2 sales
The goal is to demonstrate cars to 80 percent of your walk-ins, write-up 50 percent of the people to which you demonstrate, and close sales with 50 percent of the people that you put on paper. This would give a 20 percent ratio for walk-in traffic. Day-to-day averages may vary, but overall, your employees should be near those figures.
Example: Suppose we have an individual on our staff who sells eighteen to twenty cars per month. Upon examining the number of customers she comes in contact with, however, you realize this person is talking to thirty customers to sell one car. Although this person pleased one customer and has enthusiasm, twenty-nine people left your company without making a purchase. Did your sales person categorize them according to their immediate intentions to purchase, and then perhaps rudely dismiss them when she did not get the "right" answer? Don't be surprised if you learn that the star of your staff is simply a flock shooter with a quick set of feet. If this is the case, you must use the information you have gathered to inform the dealer that you need to take some kind of action with your star, as your dealer probably thinks the world of his top producer. Then use your skills as a people manager to get this employee under control. There is nothing wrong with a sales person with a high energy level, but you must give every walk-in customer quality treatment. Teach your sales people to put all their efforts into solving the unique problems in earning each customer's business and closing a sale.
Another sign to look for in your "up" count is drastic swings in the number of daily car sales, with a big increase toward the weekend. There will be occasional quiet days, and there will be busy days when you have a promotion, but normally you should see a constant number of cars going down the road every day. If this is not the case, your sales crew is living off their walk-in traffic, and doing very little follow-up with the clients they cannot sell the first time they are in the store. Keeping in touch with these customers on the phone will not only bring you an unbelievable number of deals, but will eliminate those days in the middle of the week that seem so slow in other stores. A follow-up routine of some sort is an absolute must!
Categorized by monthly and daily sales, how many cars have you sold, both new and used, and what is your goal? Let's go back to our previous statement about when a sales person fails. You need to know how many cars per day your staff is selling, broken down by individual sales people. If your dealer has hired you to sell two hundred units per month, and you have eight sales people on staff, on target to generate twelve monthly car sales each, you had better start thinking about increasing the productivity of each person per month or increasing your staff. That is a simple process. First, calculate the number of working days in each month. You can determine this by taking the total days per month, and subtract all the days the store will be closed. For example, we will say there are twenty-five working days in a particular month. If it is the third working day of the month, and the store has sold fifteen cars, divide the fifteen cars by the three days to get a daily travel (sales) rate of five.
TABLE OF CONTENTS:
FITTING IN LIKE A SEASONED
SIX KEY SKILLS FOR SUCCESSFUL
HOW TO FIELD THE TOP PLAYERS
ON YOUR FLOOR
EVALUATING YOUR TEAM
TECHNIQUES YOU CAN USE
DESIGNING A TRAINING PROGRAM
TRAINING A COMPETANT AND
A SECRET WEAPON YOUR COMPETITION
WON'T HAVE: ORIENTATION FOR THE
KEEPING YOUR ORGANIZATION ON
TRACK: THE TEN MINUTE CLASS
EIGHT KEYS FOR EFFECTIVE MEETINGS
WHY IS UNDERSTANDING INVENTORY
MANAGEMENT SO IMPORTANT?
AUTOMOBILE DISTRIBUTION FROM THE
FACTORY TO YOU
IMPORTANT BASICS OF INVENTORY
AVOID A COMMON MANAGEMENT
MISTAKE: KNOW YOUR INVENTORY
UNDERSTANDING YOUR DEALER'S
MONEY- DEALING WITH YOUR
PROVEN PROFIT CONCEPTS FOR USED
AN IMPORTANT SECRET OF TOP
MANAGERS: EFFECTIVE FACTORY
BASICS TO TURN YOUR ADVERTISING
INTO A POWERFUL WEAPON
A SHORT COURSE: WRITING A
NEW CONCEPTS FOR A FAMILIAR
JOB: OPTIMUM DESK STRATEGIES
VALUABLE TIPS TO HELP YOU
ORGANIZE YOUR DESK OPERATION
STRATEGIC IMPORTANCE OF USING
THE WRITE-UP AND DAILY REPORT
TECHNIQUES TO MAXIMIZE YOUR
POTENTIAL WHEN CLOSING THE DEAL
ONE SIMPLE TECHNIQUE TO HELP
YOU ACCOMPLISH MORE AS A MANAGER
HOW TO MANAGE YOURSELF
ANOTHER IMPORTANT INGREDIENT TO
SUCCESS: PHYSICAL WELL BEING
THE ONLY GUARANTEED METHOD
Jon McCormick didn't get a book on his first job as a dealership manager. The library had nothing, and no one had the time or expertise to teach him the job, "Short of going to the Northwood Institute or the dealer academy," he says, there weren't a lot of educational opportunities out there for managers." So McCormick decided to write "Automobile Sales Manager's Complete Success Formula" (University Publishing House, Provo, Utah, $24.95). It represents a four-year effort to cover the secrets of managing a profitable dealership in an era of uncertain sales and slim margins. Full of insider tips, it also lists the challenges a dealership manager faces during an average day.
With personal anecdotes and an informal style that would put any novice manager at ease, McCormick first cites the facts and rules on a subject (such as turn-and-earn distribution systems), then recommends successful techniques. In covering floor-planning, for example, he explains why understanding cash flow is important: "If you don't keep a finger on your cash flow, your problems will mount faster than you can believe. Your company may reach the point where they try to float their money by delaying payment to the flooring source. This is usually a sign that the end is near."
On factory relations, McCormick offers tips on building bridges with the district sales manager: "Do not think this person does not have some effect on the computerized turn-and-earn system he administers. They will tell you all day long their hands are tied, but present them with a program they like, in guidelines where they can perform, and they will listen to you." The manual's topics include recruiting sales and F&I staff, earning higher used-car grosses, writing and producing ads, boosting customer satisfaction, organizing daily reports and staff meetings, and structuring work days for maximum productivity.
"I've learned these things through trial and error." says McCormick, who has spent 20 years in the business and is general manager of Gary's Westland Olds/Buick/Isuzu, Twin Falls, Idaho. The manual, he says, is aimed at people who were "never taught the basics." -Aaron Robinson (Automoative Executive magazine, October 1995)
Fay Barbour, well-known author of best seller, "Automotive Sales Techniques," says, "The Automobile Sales Manager's Complete Success Formula, is a must for anyone involved in the incomparable art of selling, or leading people in our great industry. Trainers, leaders, and manufacturing professionals can profit from it as well. This is the first book I have ever seen that can give one an understanding of the professional techniques used in managing an outstanding dealership. "
The "writing style is one I particularly admire. It is clear, to the point, and reader friendly." --Bill Smith, Advertising Director Auto Age Dealer Business.
This book "focuses on the personal commitment and involvement required for success. I believe that it does an outstanding job of making this concept come alive." --David K. Brown, General Director of North American Vehicle Planning, General Motors.
"If a dealer, anyone working up to management, or a manager is looking for a guide I would highly recommend they take advantage of the material..." --Ron Bianchi, President Bianchi & Associates.
"This very simple and informative book will save years... of on the job training." Jerry L. Preece. independent used car dealer.
"This is a very proven and successful formula for running any car dealership and can be applied to almost any avenue of the business world as well." Gary Storrer, President, Gary's Westland Motors.
About the Author
Jon W. McCormick is a general manager with a successful automobile dealer in Twin Falls, Idaho. Jon specializes in employee development, inventory control and merchandizing, advertising for the company and expense controls. He bases his philosophies and techniques on eighteen years hands-on experience in automotive retailing: six years as a sales professional, four years as a dealership finance and insurance manager and eight years as general manager. Learning from seeing the best and the worst, he has developed successful methods of business.
The methods used by Jon McCormick actually work in day to day application. Operating as part of an outstanding staff, the company he is associated with has achieved many noteworthy goals. Some of these are: 1. most profitable dealer in the Pontiac Division Denver Marketing Zone, with net operating profits in 1991 approaching one million dollars. 2. Fourth highest volume truck dealer for the GMC Denver Marketing Zone, and one of the top volume Nissan dealers in the state of Idaho. These figures are even more impressive when one considers this company is being compared to stores operating in areas of much larger population base; 3. the only new car dealer in their area of influence to show, a steady increase in new car volume over the last five years. Jon has pursued excellence in his entire automotive career. He was awarded membership in Lincoln- Mercury's Professional Sales Association Master Sales Club. He has twice received the prestigious Master Manager Award from Cadillac Motor Division, for achievements in sales volume, training and high levels of customer satisfaction. Jon McCormick also takes an active role representing his company to the public. He has appeared as the spokesperson for the firm in numerous television and radio advertisements. He has appeared as guest lecturer in sales and business classes at Weber State University and the College of Southern Idaho. He has also been a contributing author for trade publications such as Key Royal's "Auto Dealer Insight." In short. Jon McCormick has lived his career as a mover and participant, dedicated to achieving only the best. His insights come from experience, and the methods he employs bring successful results in a very challenging business.