Henry Day Ford
How many sales guys do I really need?
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:)
Henry Day Ford
How many sales guys do I really need?
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:)
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Henry Day Ford
I run a used car department at a new Ford franchise. We have been doing really well lately, which I'm sure is the case for most dealerships. We have actually been really, really consistent this year and have basically sold 75 used cars every month (+/- 2 cars).
We for sure aren't complaining about the numbers we have been putting up lately, but I think it is always important to take a step back and analyze things even during the better times. Because of the fact that we have leveled out at 75 units, we are trying to find a way to take this thing to the next level. We aren't trying to get greedy or anything, we are just trying to explore other options to help us bump 10 or so units per month.
With that said, I feel like we have tried just about everything to help us get that extra bump. We have tried screwing with our car/truck mix and putting more cars out there than we normally do ( all that did for us was cause an aging problem!). We have tried the whole set and subset method and buying things in large bulk and selection. We have tried the price band method by just focusing on cheaper inventory. We are next to a Chevy and Dodge store and we tried buying some of their more desirable cars and give them away. We have tried bumping our display up by 15-20 cars. We have messed around with different ways to advertise. And finally, we are currently trying some high roller cars that we have never tried in the past due to our demographics.
Anyway, we like to think we are pretty good at what we do but we can't seem to take this thing to the next level. I'm beginning to think we have reached are store's capacity but I am still optimistic that we can grow a little bit more. Any ideas? Have any of you guys tried something that I didn't mention? Or maybe an secrets as to what I may be doing wrong?
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Henry Day Ford
I run a used car department at a new Ford franchise. We have been doing really well lately, which I'm sure is the case for most dealerships. We have actually been really, really consistent this year and have basically sold 75 used cars every month (+/- 2 cars).
We for sure aren't complaining about the numbers we have been putting up lately, but I think it is always important to take a step back and analyze things even during the better times. Because of the fact that we have leveled out at 75 units, we are trying to find a way to take this thing to the next level. We aren't trying to get greedy or anything, we are just trying to explore other options to help us bump 10 or so units per month.
With that said, I feel like we have tried just about everything to help us get that extra bump. We have tried screwing with our car/truck mix and putting more cars out there than we normally do ( all that did for us was cause an aging problem!). We have tried the whole set and subset method and buying things in large bulk and selection. We have tried the price band method by just focusing on cheaper inventory. We are next to a Chevy and Dodge store and we tried buying some of their more desirable cars and give them away. We have tried bumping our display up by 15-20 cars. We have messed around with different ways to advertise. And finally, we are currently trying some high roller cars that we have never tried in the past due to our demographics.
Anyway, we like to think we are pretty good at what we do but we can't seem to take this thing to the next level. I'm beginning to think we have reached are store's capacity but I am still optimistic that we can grow a little bit more. Any ideas? Have any of you guys tried something that I didn't mention? Or maybe an secrets as to what I may be doing wrong?
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