I have been brainstorming a lot lately on ways to rally the troops. Anybody that has worked in the car business knows that November is the start of 4 pretty slow months in a row. The guys are already starting to feel the affects of the downturn in traffic and as a result are already starting to complain. I want to try to do everything I can to help keep them motivated and to keep things somewhat interesting around here.  The only thing is that I am on a limited budget.

     We have tried Christmas at the dealership during December as a fun way to compensate and spiff the salesguys.  We would go buy like $6,000 worth of stuff (tv's, laptops, digital cameras, and basically anything else they have at Costco!)  The response that we got was always really good, but the problem we had the last time was that everyone needed the cash more than they needed the gifts, so they returned like 90% of the stuff to Costco. I'm pretty sure the guys are in the same boat this year and would rather have the money vs. the gifts. It is way too much work to go buy all that stuff and get it here to the dealership if they are going to just take it back the next week.

     With that said, we need a fun, affordable way to keep things interesting around here during the holiday season. Like I said before, we can't break the bank because the owner of the store keeps us on a budget. So we need a really good idea. Let me know what you guys have tried in the past that has been successful.  Keep in mind that the program needs to be tied to selling cars and needs to reward productivity for the guys that are pushing hard during the slow months. I don't want to just hand out free money! Let me know what you guys think.

     I have been brainstorming a lot lately on ways to rally the troops. Anybody that has worked in the car business knows that November is the start of 4 pretty slow months in a row. The guys are already starting to feel the affects of the downturn in traffic and as a result are already starting to complain. I want to try to do everything I can to help keep them motivated and to keep things somewhat interesting around here.  The only thing is that I am on a limited budget.

     We have tried Christmas at the dealership during December as a fun way to compensate and spiff the salesguys.  We would go buy like $6,000 worth of stuff (tv's, laptops, digital cameras, and basically anything else they have at Costco!)  The response that we got was always really good, but the problem we had the last time was that everyone needed the cash more than they needed the gifts, so they returned like 90% of the stuff to Costco. I'm pretty sure the guys are in the same boat this year and would rather have the money vs. the gifts. It is way too much work to go buy all that stuff and get it here to the dealership if they are going to just take it back the next week.

     With that said, we need a fun, affordable way to keep things interesting around here during the holiday season. Like I said before, we can't break the bank because the owner of the store keeps us on a budget. So we need a really good idea. Let me know what you guys have tried in the past that has been successful.  Keep in mind that the program needs to be tied to selling cars and needs to reward productivity for the guys that are pushing hard during the slow months. I don't want to just hand out free money! Let me know what you guys think.

     We are at the time of the year where we are doing our Christmas cards for our customer base. I think the cards are really important as we need to make sure that our customer base knows we care about them enough to wish them happy holidays. The problem we have is that we have tried various cards/letters not really knowing what is the best route to take to ensure that we get a positive response from our customers.

     To save money we have gone to a bulk card that we are all sending to our customers. While I agree with cutting costs wherever we can, I don't think this is the best place to cut costs. I wonder what the customer is going to think when they open the card. I wonder if they will really feel like we care.  Basically all we are sending is a card that says "Happy Holidays" in a nice font included with a signature from the salesperson and a business card. Some people here at the store think that this card is sufficient and there is no need to do more. I personally think they are just too lazy and don't want to put forth any more effort than they have to!

     Anyway, I think it is important to do more but other people disagree with me. I'm not suggesting we break the bank or anything, but I think it is important to show the customer that you really do care about them and it is totally appropriate to invest a little bit more money to do so. What do you guys think? Is there anything that you have tried that is effective, relatively inexpensive, and still shows the customer that you care?

     We are at the time of the year where we are doing our Christmas cards for our customer base. I think the cards are really important as we need to make sure that our customer base knows we care about them enough to wish them happy holidays. The problem we have is that we have tried various cards/letters not really knowing what is the best route to take to ensure that we get a positive response from our customers.

     To save money we have gone to a bulk card that we are all sending to our customers. While I agree with cutting costs wherever we can, I don't think this is the best place to cut costs. I wonder what the customer is going to think when they open the card. I wonder if they will really feel like we care.  Basically all we are sending is a card that says "Happy Holidays" in a nice font included with a signature from the salesperson and a business card. Some people here at the store think that this card is sufficient and there is no need to do more. I personally think they are just too lazy and don't want to put forth any more effort than they have to!

     Anyway, I think it is important to do more but other people disagree with me. I'm not suggesting we break the bank or anything, but I think it is important to show the customer that you really do care about them and it is totally appropriate to invest a little bit more money to do so. What do you guys think? Is there anything that you have tried that is effective, relatively inexpensive, and still shows the customer that you care?

    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?

    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?

     We have been working on our 2011 forecast numbers for the last 2 weeks. Forecasting for our store usually consists of hours of crunching #'s from the past years, a mandatory Sunday meeting to present research and forecast for next year, and then several meetings after to compile all the #'s together to come up with an overall master plan for the upcoming year.

     While I think that a lot of what we do is important and making goals is very important, I think we put way too much work into forecasting and it seems to be the same thing year after year. Like I said, I am a firm believer about setting goals in order to stay focused every year but I feel like we are putting in a lot of work to set a forecast that is similar to last year plus 10% or so.

     Anyway, this is the only store I have ever worked at so I don't know any different. Is that the norm for most dealers? I'm sure most dealers set goals and strive to improve in any way possible, but how much time and effort is really put into it? What have you guys found to be effective in your goal setting?

     We have been working on our 2011 forecast numbers for the last 2 weeks. Forecasting for our store usually consists of hours of crunching #'s from the past years, a mandatory Sunday meeting to present research and forecast for next year, and then several meetings after to compile all the #'s together to come up with an overall master plan for the upcoming year.

     While I think that a lot of what we do is important and making goals is very important, I think we put way too much work into forecasting and it seems to be the same thing year after year. Like I said, I am a firm believer about setting goals in order to stay focused every year but I feel like we are putting in a lot of work to set a forecast that is similar to last year plus 10% or so.

     Anyway, this is the only store I have ever worked at so I don't know any different. Is that the norm for most dealers? I'm sure most dealers set goals and strive to improve in any way possible, but how much time and effort is really put into it? What have you guys found to be effective in your goal setting?

     I have never been a huge believer in negative reinforcement. The tough thing as a manager is to figure out what actions to take when you have repeatedly told an employee what to do and he fails to listen.  So what is the best way to handle a guy like that?

     We just had an issue with one of our salespeople last week and it has created enough controversy that I decided to write a post on it.  This guy has a history of being late more often than he should. He has been verbally warned from the owner of the store on several occasions not to miss is morning sales meeting.  We have never threatened anything against him nor have we ever written him up for his actions. He was late to another meeting last week and as a result, the owner decided to penalize him by taking away his largest spiff for the month ( which will end up being $500).  He is obviously really pissed about the situation and feels like he should have been warned about the negative reinforcement first. He also thinks it is a very extreme punishment and something a little more reasonable would have been more appropriate.

     I find that I am torn as to who's side I am on. I completely understand where the owner is coming from in that it is really hard to manage someone that doesn't listen to what you ask of them and are constantly making the same mistakes.  Conversely, having sold before I see where the salesguy is coming from. It was a  pretty drastic punishment and it could have been handled a little bit differently. 

     With all that said, what is the best way to approach a situation like this.  Is negative reinforcement really the answer or is there a more effective way that won't kill the moral of the salesperson?  What has worked for you guys in the past?

     I have never been a huge believer in negative reinforcement. The tough thing as a manager is to figure out what actions to take when you have repeatedly told an employee what to do and he fails to listen.  So what is the best way to handle a guy like that?

     We just had an issue with one of our salespeople last week and it has created enough controversy that I decided to write a post on it.  This guy has a history of being late more often than he should. He has been verbally warned from the owner of the store on several occasions not to miss is morning sales meeting.  We have never threatened anything against him nor have we ever written him up for his actions. He was late to another meeting last week and as a result, the owner decided to penalize him by taking away his largest spiff for the month ( which will end up being $500).  He is obviously really pissed about the situation and feels like he should have been warned about the negative reinforcement first. He also thinks it is a very extreme punishment and something a little more reasonable would have been more appropriate.

     I find that I am torn as to who's side I am on. I completely understand where the owner is coming from in that it is really hard to manage someone that doesn't listen to what you ask of them and are constantly making the same mistakes.  Conversely, having sold before I see where the salesguy is coming from. It was a  pretty drastic punishment and it could have been handled a little bit differently. 

     With all that said, what is the best way to approach a situation like this.  Is negative reinforcement really the answer or is there a more effective way that won't kill the moral of the salesperson?  What has worked for you guys in the past?