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Bryant Gibby

Bryant Gibby Used car manager

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Target closing percentages

    The owner of our store has been harping on me and the other sales manager lately about closing rates.  I feel like it is an issue that he constantly brings up and almost seems like we will never be able to get our closing percentages to a level that he is ok with.  We think we do a really good job with the opportunities that we have and I feel like we have a really good sales team. I can't imagine that we are so much lower than what is considered average. But what is average?

 

     These are our benchmark closing percentages that he wants to see from us.

  1. Phone calls: 15%
  2. Internet: 12%
  3. Walk-ins: 25%
  4. Demos: 85%
  5. Be-backs: 50%

 

     We aren't too far from these percentages most of the time but we usually aren't ever there consistently.  I just get sick of the same old conversations with regard to these figures. I wish we could get to those #'s from time to time so we could blame our lower sales on something else. I feel like they are a little bit on the high side, but maybe that is the point.  What do you guys use a benchmark #'s at your dealership? Are we high, low, or right on?

David Ruggles
I have been tracking this for yours, and I can tell you one thing for sure. A high showroom closing ratio, back in the day, logging every single possible "up," was 20%. To achieve this, you had to have a veteran sales staff. I'm talking about a sales staff that had worked in the same store for a minimum of 10 years. These days, consumers are different. They come to the showroom to gather information, and to perhaps confirm what they have researched on the web. While they are in the store, they have no problem taking up a sales person's time and perhaps taking a test drive. it is frequently NOT their purpose to buy a vehicle while in the store. They then go home and use the Internet as a negotiation tool, often playing a sales person off against his/her own internet department. Young buyers are the worst. They truly resent dealers, feeling they should be able to buy a vehicle over the web like they buy a Dell computer. My generation wanted to pay a profit so our business had value to the dealership. You'd like to come to a service department where they valued your business. The new generations don't care about that. I wish I could say it is different, but the trend favors increasingly ruthless buyers and more and more tools to help the consumer gain even more advantages. There are still some traditional buyers, but it is mostly impossible to tell them from a pure internet buyer.
Bryant Gibby
I agree. That is why we are having such a hard time tracking everygthing. It's hard to know what is an acceptable % these days.

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