Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Shawn Clos

Shawn Clos President

Exclusive Blog Posts

What People Are Looking For In An Auto Repair Shop

What People Are Looking For In An Auto Repair Shop

Those who have been involved in some sort of accident have the next step of finding an auto repair shop. These shops are not all created equal as some are …

One Price Selling – What Are You Waiting For?

One Price Selling – What Are You Waiting For?

Most Dealers are closer to a One Price Selling sales process than they may realize. If you’re an excellent pre-owned dealer you’re basically no…

What Is Your Chemistry With Women Buyers?

What Is Your Chemistry With Women Buyers?

Wow, its December. Last month of the year. Now is the perfect time to begin to reflect on the customer processes, engagement and strategies you have in pla…

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

If it’s time for you to take the next steps in your career, there are some tried-and-true methods that can ensure your success. All business professi…

BDC training for 2017

BDC training for 2017

  We have a service and sales bdc team for each of our stores. One is a Hyundai store and the other is a Chevrolet store. We have Three sales Bus…

It May Be Time To Kill Your Business Model Before Your Business Model Buries You

It May Be Time To Kill Your Business Model Before Your Business Model Buries You

 

Think about this….How often do you readjust your business model? Unfortunately, there are some dealers that are still living off the same business model that they have had twenty years ago. Not to say this is a bad thing but tends to lead to missed opportunities.

This raises a key leadership question: Why do leaders wait too long to modify or abandon their business models? Take the US Postal Service for example, even with the constraints from their government mandate, the US Postal service has known for many years that its traditional model business model was coming apart. Think about Net Zero and AOL they knew that dial-up subscriptions were fading years before they took action. Look at our own industry and what took place in 2008 both GM and Chrysler needed Bankruptcy in order to force them to change their business models.

We must first remember that no business model lasts forever. The most dangerous trap that any dealer or manager can fall into is compliancy. The auto market, our environments, and the endless amounts of technology can change so quickly that no amount of profit today guarantees success tomorrow.

The second part is to continually, actively and aggressively be on the lookout for new opportunities to grow your business; you also must always be training and retraining your staff to keep them up to speed on new processes and personal improvement. Always keep this in mind if you are only investing in the refining of today's business model you'll without a doubt get locked into it and you will never grow beyond it. You must test, refine and invest in alternative models that will move against that reality. Sure there will always be speed bumps and sometimes failures, but with enough persistence, creativity and incredible amounts action viable alternatives will always emerge.

Prior planning prevents poor performance so here are some things to consider prior to making any changes to your business model:

First and most importantly take your emotions out of it. Change in any dealership can be extremely difficult, and not just from a financial or technical perspective. When you’ve worked hard to create a successful dealership from the ground up, there’s going to be emotions involved. Re-examining the idea of changing your business model you thought would work for your dealership is a giant leap, but one that must be taken if your dealership is struggling to grow.

Always evaluate all the warning signs all the time. There will be a few under-the-radar warning signs to show you that your current dealership model is failing. Being too dependent on what the other dealers in your 20 group are doing, spending money on the latest and greatest technical gadget without fully understanding how it will impact your current processes, having a poorly trained management staff that leads to high turnover in all of your profit centers. These are all signs of a failing business model. Before changing your model entirely, attempt to fix these standalone issues. Without repairing the issues that you are facing then you will not be able to adjust your business model.

With 2013 just around the corner this is a great opportunity to just take time to think about your dealerships business model. It may be time to make some small adjustments or major adjustments? This article was written with the hope that you will re-evaluate your current position and look at all possibilites for growth and opportunity. Make it Happen.....Happy Selling!!

Megan Barto
When I started to read this blog post, I was reminded of a book my team is reading called "Good To Great" (you may have heard of it). I was reminded of the Stockdale Paradox. Retain faith that you will prevail in the end, regardless of the difficulties. AND AT THE SAME TIME Confront the most brutal facts of your current reality, whatever they might be. How does this translate to your blog post (which is great, by the way). Retain faith that you will still SELL CARS & MOVE METAL. and at the same time, Confront the fact that a business model from 20, 10, heck even 5 years ago won't work TODAY. Thanks for sharing!
Shawn Clos
Megan, Thank you so much for your comment!! My opinion is that no matter what the circumstance is you must always have Faith in all things possible. From my recollection Mr. Stockdale was held captive for many years while facing possible death. Instead of lying down and accepting defeat he took a different approach and was uplifting to not only himself but to his fellow prisoners. Great leaders will always be able to make the needed changes and build great processes. They will also be uplifting, supportive and willing to teach, train and coach. The way that Mr. Stockdale lived during his captivity is a lesson that everyone could learn from.....Great stuff Megan :) PS: Just out of curiosity do you have a book club at your job?

 Unlock all of the community & features  Join Now