You could feel the winds of change from NADA all the way to the east coast,…and not just for the manufacturers. Today’s automotive retailer has to deal with new technologies that are not only available for their dealerships but automotive shopping and buying technologies that are available directly to the consumer. There are so many different systems and processes being pitched for eCommerce, BDC, showroom, sales desk;…for both new and used vehicles. Great tactical solutions that are necessary to carry out your strategy. If you have the right strategy?
What’s your Strategy?
With so many options it can be challenging to decide which is best; exactly what and how to change. There is no one best answer. The important question is which plan is best for your store, your market, your team and your consumers.
Here’s just a few things to consider:
Staffing & Compensation Structure – Margin compression has made compensation an ever increasing challenging issue for dealers. Low comp on the Sales Associate side is contributing to a dangerous increase in turnover and high comp on the F&I side simply is not sustainable. What’s the solution that can level out your comp, increase productivity, lower turnover and keep your store growing in today’s changing marketplace?
- One-Person Selling?
- Two-Person: Product Specialist with Sales/Finance Manager?
- Two-Person: Professional Salesperson who desk their own deals plus a Finance Manager?
- Traditional three-person; Sales Associate; Desk Manager & F&I manager?
Compensation Plans and their Impact on Talent and Results – Our traditional compensation plans make managing human capital extremely challenging. The best quality millennials don’t want to work for 100% commission. The elephant in the room is the huge impact disproportionate F&I comp has on our business; the average comp differential between sales managers and F&I managers creates all kinds of negative unintended consequences. It’s true that comp drives behavior, the question is what kind of behavior do you want to drive? How can you leverage comp structure to improve your overall human capital ROI?
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Author: Digital Dealer
Digital Dealer exists to help dealers and their managers sell more vehicles more profitably by creating the best live events and media in the industry.