More Profit...... Please (Car Talk)

Many car dealers are focused so heavily on selling high volume that they are leaving money on the table. I know from speaking to my buddies from other industries that the volume v profit fight is in full swing, it’s balancing act that we all have to perform to some degree I guess…?

In this thread I’d like to begin a discussion on how to restore the profit focus into our business’s, below are some of my profit improvement initiatives.

Profit improvement strategies

Clear & regular profit focus by everyone
Raise expectations
Create “Profit Plans” not budgets, with sales team
Put a 1 week focus on profitability first and volume achievement second
Be creative, brainstorm, monthly theme as agreed by team
Review effective strategies daily and focus team on how to implement them
Reward on a monthly / annual basis / link to annual review
Write into Quality Management or internal processes
Build on motivation from profit

You have pretty much covered all basis there I think Tony.

2 of your points that I would like to emphasis is "Profit Focus" and Motivation from Profit.

Profit Focus!
If this is "on the Radar" of the sales team and there main attention is getting gross back into the deal, this will happen. What I find alot of Sales Staff do - especially in the automotive industry is give everything away to early. By no stretch of the imagination does anyone need and sometimes want to be given anything. This way while the Sales Member is focused on keeping something (GROSS) up their sleeve the customer is thinking that they will have push harder to get all (a small portion) out of the Sales Team.

Motivation from Profit!
IN my experience of leading a sales team - it is far better to pitch to your sales team that they make their own money and the EASIEST way fo them to do that is keep money in the deal. If sales team are finding it hard to hit volume targets then their pay will be of a level that makes them de-motivated. However if their focus is on profit and their outcome make profit then their motivation will lift.

I also find that showing the customer a geniune car for their needs and deliverying what they want helps in theis regard. No customer in any sales industry will want to spend money if they aren't set on the product or the person they are buying it from.

Isn't the negative association of car salespeople related to a focus on profit?

Quote:

Originally Posted by Marcus

Isn't the negative association of car salespeople related to a focus on profit?

I understnad where you are coming from. However I was more so talking about the focus on profit being indirect. If you didn't focus on this at all then the sales staff would feel as though the current is good enough. However by keeping the focus on then sales staff can make an effort to follow certain procedures to keep profit in the deal.

Quote:

Originally Posted by Snowboy

However by keeping the focus on then sales staff can make an effort to follow certain procedures to keep profit in the deal.

Solid plan.

Generally is there profit in new car sales or is all the money in used car sales?

Used Cars will aways make a profit in each INDIVIDUAL sale however with the New Car Sales it requires a good managment style in order to make money. Don't get me wrong I have personally seen managers in the Automotive Industry and with the correct focus on New Cars and Profit making the figures can easily turn around.

Quote:

Originally Posted by Snowman

Many car dealers are focused so heavily on selling high volume that they are leaving money on the table. I know from speaking to my buddies from other industries that the volume v profit fight is in full swing, it’s balancing act that we all have to perform to some degree I guess…?

In this thread I’d like to begin a discussion on how to restore the profit focus into our business’s, below are some of my profit improvement initiatives.

Profit improvement strategies

Clear & regular profit focus by everyone
Raise expectations
Create “Profit Plans” not budgets, with sales team
Put a 1 week focus on profitability first and volume achievement second
Be creative, brainstorm, monthly theme as agreed by team
Review effective strategies daily and focus team on how to implement them
Reward on a monthly / annual basis / link to annual review
Write into Quality Management or internal processes
Build on motivation from profit

It look like you have all basis covered

Tony,
I don't think you need any help sourcing a new idea - I agree with John when he says you have got it all covered.

There must be some more angles......

Quote:

Originally Posted by Snowman

Many car dealers are focused so heavily on selling high volume that they are leaving money on the table. I know from speaking to my buddies from other industries that the volume v profit fight is in full swing, it’s balancing act that we all have to perform to some degree I guess…?

In this thread I’d like to begin a discussion on how to restore the profit focus into our business’s, below are some of my profit improvement initiatives.

Profit improvement strategies

Clear & regular profit focus by everyone
Raise expectations
Create “Profit Plans” not budgets, with sales team
Put a 1 week focus on profitability first and volume achievement second
Be creative, brainstorm, monthly theme as agreed by team
Review effective strategies daily and focus team on how to implement them
Reward on a monthly / annual basis / link to annual review
Write into Quality Management or internal processes
Build on motivation from profit

really good info there.

More Profit...... Please (Car Talk)

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