There are about 17,000 new car dealers across the country and over 20,000 non-franchised used car dealers. Most of which, have at the very least one desk manager. This person, often called “The man (or woman) behind the curtain.”, plays a critical role in any dealership. It is this person’s job to leverage their salespeople to ensure customers make the right purchase for both the customer and the dealership. The type of purchase that will ensure the dealership remains profitable, but also enhances the brand of the dealership through the experience of the transaction, and simultaneously builds the skills and confidence of the salesperson involved.

After a decade desking thousands of deals as a desk manager and having led desk managers as a GSM, I am able to share some great insights around desk management. Now, coaching dozens of dealers and their management teams, and conducting cultural assessments across the country: these awesome peoples unique perspectives have taught me what makes a team believe their desk manager is phenomenal vs average. I share these insights in hopes that desk managers continue to grow and improve, or that new desk managers who aren’t shown the ropes are able to learn what it takes to be amazing at the desk vs mediocre. Because I believe an amazing desk manager can have a vast positive impact on their team.

So, what does make a phenomenal desk manager compared to an average desk manager? Here is what I believe makes a desk manager extraordinary!

Wants their team to earn a great living, and tracks this for each individual salesperson.

Desk managers that truly care about their team’s financial wellbeing feel responsible for their teams’ income level. While it certainly does not all rest on their shoulders alone, they take this very seriously. Some desk managers even track their salespeople income objectives for the month, and are consistently reminding their individual people where they are at, in relation to their objective for the month. They want the salespeople to feel like the manager cares about their income as much as they do. By doing so, they know their manager has their best interest at heart. It is important to know that growth and accountability also come with measurement and follow up. The true leader of desking helps their people reach their income goals by being proactive and checking in after each deal, throughout the month, with each person.

Trains before the game and coaches during the game.

The Fabio of the four square is proactive in their approach to people development. When their people aren’t busy, they will grab employees and roleplay real and relevant negotiation or business transaction scenarios. They believe in continuous improvement and are always seeking ways to help each employee grow where they need it most. They will coach people on the metrics within their CRM that could ultimately impact results. Some of the best desk managers I work with across the country will even assign books for their people to read and have team meetings and discussions about them. They may have their people rate themselves on various selling related activities and determine who could help them train the rest of the team, or ask who wants training on which topic. This all happens during down time. Once a customer is engaged; however, it’s game time. The training stops and coaching kicks in. They will stay calm, cool and collected. Even when faced with the most challenging customers, they coach their people through it. They leverage this on the job coaching to help each salesperson develop problem solving skills and adopt the right mindsets that are duplicatable and sustainable. They know that being a crutch for their employees and solving their problems for them is not scalable and hinders success. They seek out opportunities for growth during the game, and ask the right thought provoking questions at the right time. This coaching ensures ensure guided autonomy takes place and salespeople continue to think for themselves.

Ensures salespeople follow the process.

We all know that it is possible to sell a car without following the entire road to the sale. The challenge that allowing salespeople to circumvent the process creates, is that it lowers accountability to the process itself. Salespeople may sell some cars by skipping steps because a fraction of buyers don’t need the entire process. Ultimately, it’s all the sales that would require the full process completion for the sale to come to fruition that are at stake. An exceptional desk manager is process driven and seeks to be each employee’s accountability partner in ensuring that they act the same way. They are on the lookout for people in the act of skipping steps, and quickly make corrections. Allowing certain people to sell how they want, when they want, can also rub off on other less tenured employees. Unless there are clear expectations tied to tenure or performance, they ensure everyone sticks to the steps at all times.

Knows what’s going on and gives relevant info.

An extraordinary desk manager follows each customer interaction from start to finish. They are consistently communicating with the customer and the salesperson. Whenever necessary, they provide relevant information and add value to the situation at hand. Asking enough questions and reading all of the information within the CRM and DMS for each customer is critical to seeing the big picture. Tailor fit responses to customer questions and suggestions based on the customers personality, needs and wants, past behavior, desired traits, expectations, and progress through the process are critical. This awareness helps the manager give great information to their people and clients that lead to informed buying decisions with little buyer’s remorse that go exceedingly smooth.

Meets the customer early in the sale.

Seeking to avoid the “Man behind the curtain” perception, to set expectations and plant seeds that will help with the sale further along in the process, the exceptional desk manager seeks to meet customers early, and often, in the sale. Assuring the customer that they are in great hands with their salesperson. That the manager is always here to support them with your team adds a massive degree of value. It also shows the potential buyer the appreciation level that is necessary for them to not just feel good, but to feel great about their purchase.

They trust, but verify.

Buying a car is a stressful experience through the eyes of many customers. This is partly due to the stigma attached to automotive employees. Also, because customers don’t understand the buying process: the unknown creates fear. This fear and anxiety causes customers to put up a wall or sometimes lie to salespeople and managers. This phenomenon may also occur when a salesperson asks the wrong question at a bad time. In addition, salespeople may have facades. They know their salespeople have information that they may want to avoid sharing for fear of a negative reaction. An extraordinary desk manager doesn’t believe, “buyers are liars”, nor do they believe that their salespeople are. They trust people and give everyone the benefit of the doubt. This creates open dialogue and good communication which is necessary to be truly effective at the desk. It shows the customer and salesperson that they listen, and thanks to the law of reciprocity, ensures that they are listened to as well. On the other side of the coin, the manager also sniffs out when something isn’t quite right. They will verify reality at almost every impasse. The intent is to determine if the customer has been lied to and is misinformed. To uncover if the customer doesn’t trust the company or salesperson and as a result is offering a lie. Or to find out if the employee is fearful of sharing the truth or simply unaware that the information they possess can help make the deal. The leader can and will ensure proper guidance and response by trusting everyone involved but also verifying reality.

Holds people accountable and asks their team to do the same for them.

Not even the exceptional desk manager is 100% flawless in ensuring they accomplish everything that they set out to do each day. No one is perfect! However, the exceptional desk manager will work with other people to co-create action plans and ensure that these plans become reality. They will hold people accountable the way they want to be held accountable. They may even ask others around them to help hold themselves accountable, which ultimately ensures the long-term success of everyone. Accountability is a mindset for the exceptional desk manager. As a result, deals go smoother, finance can operate at a higher capacity and you can count on them and their team to get things done.

Works deals the same as other desk managers.

Alignment and uniformity helps everyone stay on the same page. When people are on the same page, they know how to approach the desk. Any stores with multiple desk managers can vastly improve the employee experience when putting together deals in this way. Working with dealers across the country, one of the primary complaints I hear is about salespeople, “Playing Mommy Daddy”, with different managers to accomplish the result they want. This occurs primarily when the managers each do things their own way, and the process or methodologies are inconsistent. The exceptional desk manager will try to follow the same order of operations as the other managers do to help ensure alignment and consistency.

Knows how to leverages ALL the tools at their disposal.

The best gym set in the world won’t help you get buff, unless you use it. Then if you use that gym set without knowing how, there is a great probability of injuring yourself. Most dealers invest thousands of dollars in some awesome tools. (and some not so often, but that’s an entirely different topic) Everything from used car appraisal software, website plugins, to CRM technology can help the tech savvy desking star, rock out extra deals, build value in the purchase for the customer, or streamline and enhance the sales process for the dealership. Often these tools go underutilized and great opportunities to grow the business are wasted. Know what tools are in your toolbox and use them at the right time.

Understands different communication styles and flexes them accordingly.

There are many ways to communicate, so what is the best way? The way that the buyer prefers. The phenom of automotive desk managers can identify which method each customer prefers after a brief conversation with the customer or sales associate, or sometimes even after having read the notes in the CRM. They also understand each of their salespeople’s preferences and know how to flex to them. By doing this, the manager can read between the lines on where each deal sits as it progresses. Then the desk manager will ensure the language, information and delivery is set for the salesperson to tailor to the customer! Sound crazy? If you have a fact and data driven customer that likes to crunch numbers and analyze the information, and a fast-talking story telling excitable salesperson, the deal may be doomed! Unless the exceptional desk manager slows the deal down, offers up the facts, data, and time frame that will help the salesperson help the customer make an educated and informed decision! On the other hand, if you have a thoughtful mindful customer with a type of customer that is hard charging, push the car over the curb to accomplish the results type of salesperson, the pro manager will load the lips to ensure thoughtful questions are asked and concerns are expressed.

Creates a fun exciting and positive experience for salespeople.

What is the experience like when your salespeople touch desk? Is it stressful? Are their jobs threatened? Is it berate and browbeat? Is it rewarding and fun? Is it positive and exciting? Does the experience make them want to do it again or avoid it like the plague? I loved working
deals with my first and only sales manager in the car business. The man, that I was lucky enough to replace when he moved on, made desking deals extremely fun. There was no customer challenge that he wouldn’t help you battle through as best he could. You always left his office feeling confident and excited that the ammo he has given you would work. When it didn’t, and you did exactly as asked, he would take the blame too. You were recognized for a job well done and offered training and coaching when there was opportunity to grow.

Shows extreme appreciation.

Gratitude is a great way for a desk manager to show humility and appreciation. Every time a salesperson drops a deal on your desk, acknowledging their hard work and dedication to take a deal that far is paramount. In addition, they show the customer extreme appreciation for their business. Only with extreme appreciation can others truly understand how important their role is in your career and life. The most grateful guys and gals of the sales desk will say thank you a minimum of 3 times while working each deal!

Knows how to build value through others.

When you talk about building value, it can sound so vague. One of the ways I interpret value building, means to give insights that are aligned to what the buyer wanted but wasn’t aware of. Offering up something you know that they didn’t know which will help them make a good or better decision. The best way to find out what they are or are not aware of something is to ask them! To build value through others is the equivalent of asking our salespeople to ask the right questions which will help them add value! The savvy sales manager will ask open ended questions to their salespeople like, “How do you know the customer wants to own this car right now?” Or “What do they already know about the car you are about to show and what do they want to learn more about?” By asking questions like these consistently, your team will begin to uncover these values adding opportunities which will help them help the customer!

Tries to avoid multi-tasking.

If I had a penny for every time a salesperson told me during a cultural assessment, “My manager ignores me when I’m talking.” or “If they would stop texting and listen…” Our brain can only process one thing at a time. Multi-tasking is a lie! The illusion of multitasking comes in someone’s ability to switch back and forth between two or more tasks quickly. Along with working deals, most desk manager jobs are comprised of many other to-dos. The extremely skilled desk manager is a master of time management. They know how much time is needed each day for desking deals and plan accordingly. They know when they need a time out to grind through paperwork, operational tasks, responsibilities like training, coaching, marketing, or any other slew of job requirements. They get them done when they are supposed to get done. When they are desking a deal with you, they seem 110% focused on what it is you and your customer need to move forward with a deal.

Loads the lips of the employees when working deals.

Salespeople of all tenure are faced with the “Want the deal more than what’s best for everyone.” mindset. The extraordinary sales manager can flex his or her communication style according to the customer and salesperson. He is able to tap into his real-world experience, automotive I.Q., employee E.Q., and ensure that they present the right things to say, and in the right way, to the salesperson on a silver platter. The salesperson should not only know what they are saying, but the ‘why’ behind the statement. In that way, they have the flexibility to make the statements more impactful and relevant. Loading the lips with more advanced salespeople should also be slightly different from new people. I recommend when working with veterans, to ask them, “what is your approach going to be?” or “please walk me through your close here so that we can make sure we that are on the same page.” After hearing their game plan, you have earned the right to load their lips. When you ask, you may be surprised by how many will already be thinking about saying what you were about to tell them to say! Other times, the exceptional desk manager will learn a new close from the veteran! Either way, every interaction involves a discussion about the next conversation with the client.

Understands perception is reality and ensures each deal feels like a great deal.

A term I have learned to love from my time in Psychological Operations is, “Perception is reality.” If our customer believes that they got a great deal, then the reality is, they got a great deal! Salespeople see almost every deal, every day, as do managers. The challenge this presents is that knowing a customer paid less for the same car last week, puts a mental barrier up that makes us feel like the customer isn’t getting a great deal this time! An amazing desk manager works with salespeople on every deal to help the salesperson convey the value the customer is getting for the money. They understand a good deal is a state of mind, and they find out what makes the salesperson believe it truly is a good deal. The goal is to help the salesperson and customer both know that they were at the right place at the right time. This desk manager understands that price isn’t the only part of a great deal. It’s also finding the perfect vehicle for the customer and ensuring that the experience is fantastic. The perception of a great deal can be skewed one way or another depending on these other factors. Often, the customers that pay the least, also happen to believe that they paid too much! It is all perception, and the pro desk manager, knows how to create this perception in every situation possible.

Knows when to SWAT. Knows when to switch vehicles. Knows when to locate or trade for a car.

An extraordinary desk manager will have control over their aged inventory because they are great at ensuring salespeople land customers on the right cars that they need to move. Along with that, they will seldom lose deals because of inventory challenges. This is because they understand the value of contingency plans. They ensure that their salespeople have that 2nd or 3rd back up plan if the in-stock unit does not work for the customer or bank. They know when the stakes are high. They will understand when a customer is going to walk and that it’s time to do a locate or buy a car from another lot to ensure that the customer will buy today!

Doesn’t give up.

An extraordinary desk manager treats every deal like it’s the most important deal of the month. They are tenacious and must outlast even the hungriest of salespeople when they have thrown in the towel on a deal. They have more stamina and power than the most stubborn buyer. No doesn’t mean no forever, it means not right at this second! Sometimes they overcome a dozen objections alongside their salesperson before even thinking about throwing in the towel. Even when the month is three quarters over and the dealership is halfway to its goal, they redouble their efforts. Consistently partaking in the right actions and activities that produce the results they want because they believe if they are going to miss an objective, it wont be because they didn’t give 150% effort. They simply do not give up.

Is a great problem solver.

The best desk managers believe that there is always a way to get to a yes. When they hear a “no”, they don’t get bent out of shape or down in the dumps. They determine that there is a problem that needs solving and they work with their salesperson and the customer to uncover and solve it. By doing so, everyone gets to move forward. Even if a problem cannot be solved right now and the customer has to leave, they work behind the scenes to solve the problems and sell a car. Their intuition may even work in the background, allowing them to breath life back into a dead deal before the month is over. How many extra deals can be engineered with a little problem solving and persistence at your dealership?

Knows the banks programs and the bank reps.

So many banks create so many possibilities. The exceptional desk manager is always understanding of what opportunity will fit best for the client and the dealership. Thousands in extra revenue can be generated quite quickly if your exceptional desk manager knows which banks pay the highest flat, or what lenders fund certain deals easier or faster. They are there also there as a safety net for finance. This will ensure no customer leaves over a finance or payment challenge. Salespeople often become frustrated and disengaged when finance steers the ship on credit and loan calls. The savvy desk manager inspects what he/she expects and isnt afraid to click another lender in dealertrack or pick up the phone and call a lender to get something approved or funded.

T.O. a deal when they can or flip a deal when they can’t.

Never letting a customer leave without touching desk is critical to a sales team’s success. In fact, the data I have accumulated shows that by increasing T.O. percentage by 30%, a salesperson’s closing percentage goes up 8%. That is a huge sales increase simply by ensuring that everyone gets a turn! The pro desk manager will be able to identify the moment at which a salesperson can no longer add value to a conversation with the customer. They will spring into action at that moment. The desk manager can’t be everywhere at once. Prioritizing time is essential for being efficient and effective at the desk. While the aficionado of dealership desking wants to T.O. every customer, they also know when it isn’t a good time to get roped into a lengthy close. As such, they are aware when it’s time to grab a good closer off the showroom floor and send someone else in to make the deal happen (even if it means a split deal). Ultimately, the salesperson is better off having 50% of a deal now, then 30% chance of a deal later with great follow up. The pro desk manager will ensure that each salesperson knows the value in a TO, and everyone will understand and welcome this part of the process with open arms.

Connects cross functioning dealership departments like finance, service and BDC.

The mantra of the dynamic desk manager is “there is no “I” in team”! Their process integrates cross functioning departments such as finance, BDC, service, even cashier into everything that they do. They believe that either the dealership employees succeed together or fail together. You may have heard the saying “business goes where it’s wanted and stays where it’s valued”. Involving the entire team can help customers feel this gratitude that leads to customer loyalty and satisfaction. Imagine a smiling introduction to your cashier to each customer. What if the porter pulled the car up front and wiped off the door handle before opening it for the customer to begin the delivery? What if the service customer had an extra coupon laying around that they gave to that special customer before they took their new car home? Selling used cars can be a challenge when customers have had a negative experience from buying elsewhere with mechanical issues. What if you brought your service manager or technician in to go over the shop bill to build credibility? What if before an unsold showroom visit left, you introduced them to the BDC person that would be following up long term to ensure the customer receives the information that will help them make a great decision? There are many creative ways to involve the entire team that create an amazing experience, build the dealerships brand, and generate customer loyalty (and the best desk managers do just that).

Goes to bat for their team.

The clever deal tactician knows how to pick their battles. They also know how critical it is to have a sales team that has their back. For them to have your back, they need to know that you have theirs. It’s the law of reciprocity! At some point in the game, a challenge will come from above that will threaten their team’s morale. A challenge could come from an unruly customer who is treating their car salesperson with utter and blatant disrespect. While unfortunate, this is an opportunity for the desk manager to go to bat for their team. Even if this amazing leader loses the battle, their team will have taken notice, and this will help everyone rally behind them. The excellent desk managers team has their back, knowing they will not let them fail. This is the ultimate safety net for any manager.

Stays cool under pressure.

The desk manager is constantly under fire. As soon as they hit the showroom floor, the phone is ringing off the hook. Vendors bombarding them from every angle and vying for their time. The customer from last weekend shows up to pick up the floor mats that they were promised, but that salesman is off work today! Salespeople line up to work deals. The owner of the store is on the line asking them to have a new demo cleaned up and have plates slapped on it for their friend who is coming to visit. Then you have your finance people that are coming up to the desk angry because a credit app was missing a middle initial! It never ends. Yet, the true desking stallion stays as cool as the other side of the pillow. They can prioritize tasks, say no to people, delegate out things that are of low or no value, and defer things that can wait until later. No matter how busy things get, they stay calm, because the steadfast leadership needed to get the job done comes from a state of confidence in both their ability and their knowledge that they are focusing on the right activity at any given time.

They believe in continuous improvement.

There are many more traits, habits and behaviors that make a desk manager excellent or even phenomenal instead of average. They know how to make the biggest impact in their career and the careers of others around them, by continuously growing and improving. The phenomenal desk manager may still be reading this because they want to squeeze every drop of knowledge out of an article they can! As a result, no matter what changes arise in the market place, they adapt and overcome them because they constantly learn and grow.

Years ago as a young car sales person, I came to one realization, that altered my behavior and activities which ultimately impacted my sales and commission checks. I want for you as a sales professional to come to this same realization so that you may earn a greater living as I did.

REALIZE WHO PAYS YOU

Depending on your place of employment you may get a check, weekly, bi-weekly, or sometimes monthly. Direct deposit or check in hand, most sales people receive their pay directly from their companies account. As such, many sales people believe it is their employer that pays them.

On the other end of the spectrum you have the sales people that believe they are paid by themselves. “I am my own business.”, is a catch phrase often used by company salespeople. Hard work, dedication, and the daily grind creates a façade where, “I pay myself through my closing skills.”

If you really want to know who writes your checks, simply follow the money.

Your bank > Your Dealerships Bank > Your Buyers Bank

As sales people, we must adopt the mentality that our pay check comes from our buyer NOT from our self, or from our employer. The value, urgency, relationship, and enthusiasm that we transfer to the client is directly related to the paycheck we earn, from our buyer!

SALES PEOPLE CAN MAKE LESS THAN MINIMUM WAGE

Even top earning sales people earn less than minimum wage when we fail! We must understand that the buyer has the right to pay us zero dollars. That’s right, your buyer doesn’t have to follow federal or state minimum wage regulations. If you spent the day with a prospect, and don’t earn the business, you didn’t even earn minimum wage that day. Truly do an amazing job with that customer and earn yourself much more than minimum wage!

DON’T BITE THE HAND THAT FEEDS YOU

Most sales people won’t ignore their managers calls or emails. The vast majority of sales people would follow up with their company owner after an important meeting. Most sales people are extremely respectful to the leaders of their company, even when they don’t get what they want.

Since we are now of the understanding who really feeds us, technically not the people above us in our company… Can we now begin to treat our customers with the same respect? Can we follow up better, interact better, and react better to what they do? Start treating every customer like they are your boss. Realize the customer gets to decide if you get fired right now (no purchase), or give you a massive raise today (big purchase and referrals)!

SHIFT YOUR MINDSET AND INCREASE YOUR COMISSION

Make this shift in mindset right now, and watch your profit skyrocket. This works every single time. Remember: The money you make is a biproduct of how you treat your buyers. How you treat your buyers is directly related to your perception of their value to you. The value your customers see in you and your wares are directly related to how you treat them! Realize that your buyer is writing your paycheck and increase your commission immediately.

Earlier this month while training a used car manager on appraisals, we were utilizing the latest and greatest automobile appraisal technology. I started thinking about the good ol' days of flipping through that little black book. Today we were looking at metrics like market day supply, average market price, cost to market, SRP's, VDP's, and many other automobile metrics to decide if we should keep or wholesale a particular car. Then if we decide to keep the used car, what ACV to give it. I began to reflect back to a time of used car management without market driven technology/data. Asking myself, "How in the world was I able to successfully run a used car operation without any of this technology or data?" Reminiscing helped me realize many of those old school techniques are still useful and incredibly important today. In fact, I realized the importance of combining the appraisal techniques of the past with the new market driven technology/data to ensure ultimate success!

After appraising a few cars together, we started to adjust pricing on the lot’s aged inventory. We noticed, some of these “lot rocks” had all the key metrics of a fast selling car, yet they were approaching 90 days old. Why were these cars still rotting on the lot? After all, they had low market day supply, and we were in the cars right. They were priced according to the market and sure looked good on paper!

Here are seven common sense appraisal questions to consider when bidding a vehicle that will help you make the best buying decision and put the right amount of money in your used cars.

1. What alternative exit strategies do you have? 

Most market driven data doesn’t factor in alternative exit strategy methods. Sure they have MMR, average book, NADA...etc. What about your wholesaler friends? Can you call them and ask for a bid on the car? Can you run the car at a silent bid sale? Does the car make a great secondary financed car that you should buy it regardless of your precious market data? Is it a car you could swap with another car from another rooftop in your group if you don’t sell it quickly?

2. How abundant is this car in your inventory?

To hit your used car objectives, maintaining the proper inventory levels is important; not just having enough inventory, but also having something for everyone. Do you have enough of those low priced cars in your inventory? Do you have enough third row SUVs in your inventory? If it is a truck you are considering, do you have any trucks in your inventory? Is this a fast seller in your market, but you already have 4 of them that you can't sell? In the end, if you need to fill a hole in your inventory, sometimes buying one that doesn’t look that good on paper doesn’t matter. Transversely if the car looks good on paper, but you have several in your inventory that just don’t sell, this should affect your bid or disposition. Remember: You can't sell asphalt!

3. Is the car ugly?

Market driven data gets too narrow when you drill down to exterior and interior color on used cars. Ugly is ugly. If the thing is a bad color combo, or has weird aftermarket appearance modifications all over it, bid it accordingly. Market data doesn’t factor in cars that have been hit with the ugly stick! Don’t justify over bidding an ugly car buy with the saying, "There's a butt for every seat." You want to invest your available purchasing budget towards cars that more butts than one enjoy sitting in!

4. Are you lieing to yourself?

Are you factoring in ALL the costs that affect what you will have in the car? It's easy to put too much into a car when appraising it, if you lie to yourself about these costs! If you're going to have to pack it, warranty it, paint it, service it, or add any other costs to it, you need to factor those things into your ACV. Look at the big picture before you justify bumping a buy bid. If you step up and bury yourself, even if the car is a fast seller that gets a bunch of SRP's and VDP's , the best data in the world won't help it sell if your sales people know you’re buried in it and they won't make more than a hundred bucks when they sell it! Some managers may avoid that scenario by not allowing their sales people to be privy to that type of information. Regardless, they will figure it out eventually, and you will know they have when that car with awesome market data is still collecting dust on your lot after sixty days. 

5. Is the car a dirty rat?

There are some cars that no amount of reconditioning can bring back to life. If it’s rough, just bid it as such, regardless of what your precious market data says. Nasty smoke smells, stained carpets, wheel damage, rust, deep scratches all over...etc. are all factors that make for nightmarish used cars that hang out on the lot, contrary to the so-called statistical facts! If it wasn’t taken care of on the outside, what will your mechanics discover when they open up the hood? When you run the car through your shop and you can't keep the shop bill under four digits, do you think you also afford the four digit reconditioning bill? How long will it take to get this car to a sellable status? If it's going to take three weeks to get the car front line ready, are you deducting three weeks of depreciation from your bid? Factor in how pigged-out this rat of a car is into your appraisal. Don’t be scared to walk away from a purchase or trade in if it makes you dry heave while sitting in it!

6. Do your sales people like to sell that type of car?

There are times when a car with horrible stats is a gem for your lot, if you have the right employee! Case and point: when I came to run a Hyundai lot from a Ford based lot, I continued to sell lower mileage, prior rental Ford Taurus Limiteds to friends and family members. Even though these cars had horrific market day supply stats, I had clients that loved them and wanted to buy them from me. An opposite circumstance: Let's say you’re at an import store and you bring in the nicest domestic car with a low market day supply. The problem might be that your sales people would rather sell your certified, pre-owned or new cars for OEM spins. This domestic car could become an aged unit regardless of the market statistics, so bid the car accordingly. Use common sense and look at specific sales people’s track records with specific makes and models. If a credible salesperson has a demanding client base and wants you to keep a car with crummy data, you may want to keep it if you believe they will sell it!

7. Are you trusting your gut?

Your experience, as a car sales person and a sales manager, has given you instincts that no market driven data can bestow upon you. If you don’t feel right about a car, or you just feel that you’re pushing the value, just get rid of the darn thing. Keeping one extra car won't make or break your entire month or year. However, making poor buying decisions based solely on market data and no common sense could cost you sales and profit, while also causing you big headaches! If you’re nervous, hit it low, get aback up bid on it, and trust yourself in making the right decision. Ask your peers and co-workers for second opinions if you’re unsure. Have one of your mechanics look the car over if you’re curious about its mechanical condition. In the end, when you buy that car, it will be your profit and success, or pain in the rear and loss. Trust your gut and use common sense in conjunction with market data to ensure your used car inventory is one that turns at great speed and with maximum profit!

Have you or your dealership staff ever scratched your heads around the end of March and thought, "Where were all the tax-time buyers this year?" If you wait for March to arrive in order to prepare, you will be finished just after tax time has ended and will miss a massive opportunity. The short-lived jolt of tax-time buyers in the market will have been absorbed by the prepared dealerships. Playing your cards right for tax time means drawing from the deck early and often. The IRS will begin processing tax returns on January 24, 2017, so preparing now, is paramount. If you want your team  to bring home a fantastic paycheck in spring, follow these simple steps to set your dealership up for success during this upcoming tax season.

Identify your Subprime Sales Hero!

Every lot has one! It’s the "Sales engineer," the guy or gal who will stop at nothing to help that customer who has less than stellar credit. When a customer walks on the lot and says, "I've been three places and can't get financed," this hero salesperson will not give up until their customer is driving off in their new or used car. Enroll this salesperson in being the "tax-time champion!" Let them know that the dealership is counting on them to succeed this tax season. Ignite their sense of purpose by making them aware of how many people they will be able to help this year by stepping into this role. Let them know this extra responsibility will not go unnoticed. Whatever you can to do motivate your “subprime sales hero” will help achieve results you need for your customers and dealership.

Train the Sales and F&I Departments

Start training the entire sales crew on tax time now. Ensure they all know how to read pay stubs and calculate income properly. Make sure they know what possible stipulations the banks require on subprime loans. Coach them on working with subprime customers.  Ensure you think through these areas:

• Do you have a strong subprime finance process in place?

• How do you uncover, and communicate with these customers?

• When do you set expectations for financing rates and terms?

• What common objections should you be mindful of from these buyers?

• Does your team know how most subprime sales are lost?  

Train your Finance departments on the banks programs. Have them consider:

• Who gives the highest advances?

• When can we use a credit union or other non subprime lender?

• Who gives bonus flats or tier bumps for lower loan to value cars?

• Which banks will waive stipulations such as pay stubs, proof of address, or trade in?

• What is each lender's minimum income requirement?

Enroll your finance department in working side by side with your "subprime hero" because they will be the rainmakers during the influx of customers. Start preparing updated inventory lists that all the people involved in subprime can access. They need to know the banks and  inventory like the back of their hands. Ensure everyone understands FTC compliance rules.  If you break those, you'll need a lot more than a big tax time to turn a good profit!  (Click HERE for a link to the FTC site regarding privacy and compliance.)  

Create an Incentive Program. To Split or not to Split the Deal?

The “subprime hero” and his finance cohorts are going to be putting in extra leg work to grind out these trickier than average sales. Make sure to make their efforts and time spent worth it! If you have a subprime department that normally splits front-end gross profit with sales people, you may have sales call reluctance when it comes to your “subprime hero” going the extra mile. Why would your hero work harder for half a deal when they can just mosey out on the car lot and get a full deal for less effort? If you are going to split the deals, I recommend putting together an incentive program based on appointments that show up with all their stipulations, sales volume, or total of cash down.  Providing your subprime point person with an added incentive will ensure vested interest in execution of your plan.

Create Your Call List

Dig through records, CRM, "dead deals,", credit bureaus, and create a "call list" to ensure your subprime sales pipeline is bursting at the seams when the money starts landing.  It's important you create a database of potential tax time buyers. Go through your CRM and find all the deals of the past six months that were unable to finance or left because they couldn’t get approved for the car they wanted. Dig through your "dead deals"and find the credit apps whose income is between $18,551 and $37,650 individually or $75,300 jointly. Based on the 2016 IRS Tax Brackets, these individuals are likely to receive the most in returns and also be above many banks minimum income levels. Gather as many of these phone numbers as possible and give them to your “subprime hero” to call. Craft a message that will incentivize the buyer without offending them. For example, "We are stocking up our inventory for spring time so our customers can get the car they want! We will also have special financing on site to help you get affordable payments! May I reach out to you in late January to give you a list of our special vehicles? They are on a first come first serve basis!" If your hero gets permission to follow up again later, ensure its scheduled in your stores CRM, and that these people are contacted again come tax time.

Start Stocking Inventory for Subprime! (based on what lenders you use)

There are several types of subprime inventory depending on the bank. The vast majority of the best subprime cars retail for under $14,000, have mileage under 100,000, and are less than eight years old. Of course, the more options and the bigger the vehicle, the better. If you’re a Credit Acceptance dealership then your best subprime car might be something you have under $5,000 cost and miles become almost irrelevant. The bottom line about both of these types of cars: They can be your fastest selling inventory with the lowest market days supply. Since the demand for these, already high demand cars, skyrockets in January through March you better stock more of them right now. Ensure your F&I manager is collaborating with your used car buyer for maximum impact on sourcing the right inventory. While purchasing inventory, the other factor to consider is that your time-to-market, cheaper cars often need more reconditioning. More reconditioning means more time in the service department, detail shop, or recon vendors. If you buy these cars three to four weeks before tax time hits, you will often pay too much and they may not even be front line ready when tax time rolls around. Stocking  un-serviced, low cost cars can be a risky proposition, so start stocking up before the new year!

Cultivate your Relationships with Lenders Now

When it comes to a subprime loan, one of the most frustrating things a sales manager and sales person hears from their finance manager is, "They were turned down everywhere." On top of frustration for the dealership, how do you think the customer feels? As the guy or gal that runs the place, the first question out of your mouth should be, "Which banks did you call and try to overturn?" “None,” is the wrong answer! Start schmoozing the bank reps and analysts now so when tax time rolls around you receive preferential treatment. Have them to your dealership for lunch. Give them a call and treat them like a client! Build some rapport. It's even a great time to add a subprime dealer agreement or two to your toolbox. Just make sure to read those dealer agreements thoroughly and know what you're getting into.

Tip: Often when you add a new lender or sign a new dealer agreement, sometimes the new bank will try harder to buy the first few loans! Adding a few sub prime banks just before tax time is a great way to pick up a few extra deals. 

Plan your Marketing Campaigns

You may have heard the cliche "the early bird catches the worm." In this case, the early dealership gets the sale. Make sure your clients know you're there to help their specific credit needs. Let them know about your "no money down" financing or the "push, pull, or tow trade-in" Create a “We forgive your credit flaws” Valentine's Day ad with a box of chocolates!  Be creative, but also have a clear, consistent marketing message across all your advertising venues. Have your business development center answer the calls in line with your campaign. Update your social media sites, online comments, and anything else that the public may stumble across for the next few months. Doing this early ensures that when the time comes, you are on their radar and will get a fair shake at earning their business.  

The subprime market really takes off during tax season. Your dealership can have a great head start in acquiring this extra business if you begin now. Be industrious and plan, prepare, and execute for the business coming up in the following months or find yourself in reactive mode, struggling to keep up.  Capitalizing on tax time now will ensure a solid start to your new year. Play your cards right and win!

Sean Kelley #thecarbizcoach ensures sales managers and owners achieve great results through their people and CRM technology. If you are interested in building a subprime department that creates happy customers, generates massive profit, and adds a healthy new dynamic to your dealership email Sean at Sean@DriveCentric.com

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