CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
We recently hired 4 salespeople within a week because us managers felt like we were short staffed and didn't have enough coverage on the sales floor. Like always, the entire sales force complained about how we were flooding the floor and they weren't going to be able to get in front of enough people to make a living. I get where they are coming from having been a sales consultant before. Nobody welcomes more salespeople and additional competition.
All this sparked what I thought would be a good topic to throw out there. What is the proper amount of salespeople with regard to how many cars a dealership sales?
I know some people think that the more sales people that you staff, the more cars you will sell. Although there is some truth to that, I think there eventually has to be a cut off. I don't agree with flooding the floor because I think it will kill moral on the sales floor and will lead to high turnover in the long run.
On the other hand, you could argue that if you can get a core group of a minimal amount of guys that know what they are doing, then that would work as well. I think the 2 drawbacks to that approach are coverage and finding that core group of guys. I think you would regret this approach when it comes to vacations, days off, and excessively busy days. Also, it is really hard to staff a team where everyone knows what they are doing. I also think this approach will promote laziness because the guys wouldn't have to work hard and fight for every deal in order to make a living.
Anyway, what is the right number? Is there a magic formula based on how many deals your dealership does? Maybe I shouldn't worry about it and just ignore my sales guys:)