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Here we are at the beginning of a new month. We are all employed for another 30 days. Whew!There is a myth in the autobusiness that the best car deals are at the end of the month. I know from personal experience as a sales manager for several years, this can be so true and the general public knows it. I got to thinking this past week in how are the deals from the first part of the month different from the last part of the month. Why do we as sales managers pass on a deal that we will take a the end of the month? One word comes to mind and that is goals. Should they be different? No. They should be worked the same 100% of the time. No matter how big or how small the profit is, move the metal and gain the customer no matter what part of the month it is.
In 2009 as a dealership, we missed getting the prestigeous Honda President's Award by a mere 18 units for the year. If we would not have passed on the few deals that we did early on in the month, we probably would have gotten our award. We as managers think to ourselves that we have a gem (whether new or used) on our lot and think, we can make more money than the customer is offering, so I will pass on this one and make it up on the next one. We have to change that mindset and even if it is a little shorter deal than we would like, take it now, make a customer, and hope that they keep coming back for service, repeat sales, and referrals from that customer. We can replace metal, but not a customer
My 2 cents is no matter how big or small the profit is, no matter what part of the month it is, move the unit and invest that money in something else and gain a customer now, earn their business in service and parts, and ask them for the referral. If you don't have a referral program in place, get one and give the customer some money for sending in prospects. The best form of advertising is word of mouth and if a customer in the beginning of the month doesn't get 'the deal' in the beginning of the month, they may tell all of their friends verbally and via social networking.