Daily I speak with people who work in the car business, mostly online connections. Today I decided to reach out to those I know locally about how things were going for them. These are people I have worked with in the past.
One thing that stood out is that used car guys were not groaning as loud as those that work at franchised stores. Everybody I asked "How's business?" rolled their eyes and replied with different comments and variations that equated to it has been better. We all know that!!
Some of the people I visited have seen management turn over 3 times this year and stores had high turn over on the front end on the sales floor. Here are some of the things that they
said attributed to that:
- Stress at all levels in the dealership.
- Owners and managers insisting on unobtainable sales goals.
- Pay plans being scaled back as a result of number two.
- New managers bringing in "their" people and ignoring those in place.
- Long term customer relationships being ignored.
- Dedication and longevity is no longer rewarded.
What struck me the hardest was the pack teams coming in on false promises work their pay plan as hard as possible and jumping ship after pouring on tons or water to used car inventories and and running off others that have been with the store for three years or longer. Anybody that has been in the car business for any length of time has seen this happen either first hand or at one of their competitors.
This phenomenon does many things to hurt a business long term and attributes to many of the things listed above. Is this a completely avoidable situation and what are the first signs of this happening so it can be frozen in it's tracks?