| Average number
of monthly sales
for sales people across the U.S. The national average is around 10.5
cars a month. I learned and applied the processes and
procedures that can produce 18+ sales a month consistently.
It all starts with the hiring process and a different kind of
training than traditionally offered in the market today.
Traditional training that's done will yield around a 25%
success rate. I averaged around a 70% success rate or nearly 3 times
the national average. |
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| The same was
true for Gross
Profit. I have talked to so many managers in workshops that
tell me that it's impossible to sell volume and maintain gross profit.
With the traditional selling methods and, if that's your
belief, (If you think you can, you're right. If you think you can't,
you're right!) you will never sell both. I found
and tested a process to do both. Our gross profits averaged
around $1200 more per vehicle than all our competitors in our franchise
group. |
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| Below represent
the averages in
"Key" aspects of the selling process that lead to the close.
Many trainers focus on closing the sale. Agreed you have to
close. But, a person does not need to know 50 closes.
IF you "Build it, it will come". In this case, it
all starts with the selection of the right vehicle, taking control, and
actually selling the vehicle. For example, most sales people don't know
their product. Well, you will need 50 closes because the
vehicle has not been sold so prepare for a 2 hours marathon close and
low gross. Demo ride ratios are generally low at most
dealerships and there is a major reason for it, AND, the process for
the demo used by most dealerships was written over 30 years ago and is
NOT effective today. There is a better way that produces very high
results and commitments from the customer. Get the written
commitment, closing ratio's sky rocket. Sales
retention, successful business development implementation,
utilization of non-product time, etc., managers managing
activity, etc., all have dramatic effects on the success, or failure,
of these ratios. |
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| Service is also
key to the
dealership. I discovered and implemented processes to raise
our Service Fixed Coverage to around 95% consistently, Customer Pay
Labor to around 70%, and Gross Profit Margins nearly 25% above the
national averages. |
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| A major key to
dealership profit
is the Floor plan Expense. Again, a better mouse-trap.
The dealership carried an average inventory of around
$18,000,000 a month compared to most dealerships of around $7.5 -
$8,000,000. At more than double their inventory, we paid a
fraction of what most of them paid. Plus, proper inventory
MIX is another major key to increased volume and higher gross profits.
Have you done a regression analysis lately? |
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