Dealership Operations & ProcessesOpinions & Advice

30 is the new 8

The salesperson that used to sell his or her 8 cars and hang right in the middle of the pack is now selling 30 cars a month. 30 units delivered is the new 8 at significantly impacted-by-COVID-response dealerships. And I think this is a positive!

This is obviously a dramatic change happening for a few reasons. First off, the number of salespeople has been reduced. Furloughs and layoffs, due to COVID-19, are the reason for that. Interestingly, the side effect seems to be the lot lizards were in those furloughs. The salesperson who demoralized the rest of the staff isn’t working in this digital environment. As Matt Haiken told us a few RefreshFriday’s ago, his front line staff is now a digitally capable crew that works as a team. This is not the case at all stores, but it is a common theme at many of the stores thriving right now.

Technology has created new efficiencies. It isn’t that this wasn’t always available, but dealers are being forced to utilize their technologies better and adopt new processes. Digital retailing solutions have not changed in response to COVID. CRMs have not changed in response to COVID. Nor have chat tools, texting solutions, or websites. Sure, a few have added some new features, but nothing has fundamentally changed; except the dealer. If the dealer used a digital retailing tool prior to COVID they’re still using the same tool, and EVERY sales employee, along with the dealer principal, have logins now. Utilization of technology is the only way to do business.

These three things: 1) Less staff 2) More teamwork and 3) Better use of technology are the reasons why the average car salesperson is doing 300% more volume. It begs the question, dealers: do you want to go back?

Who knew an argument with Jeff Kershner, in 2005, would lead to Alex becoming a partner with him on DealerRefresh. Where will the next argument take ...