To be a successful and profitable dealer today, you have to create a positive shopping experience for your customer. The most important factor contributing to a customer’s positive experience with a dealer is his or her interaction with the salesperson. Dealers need to focus on seeking, attracting and retaining the best salespeople to create a positive shopping experience for their customers, which will undoubtedly lead to increased profits.
If you are seeking new candidates, ask the dealership’s most talented salespeople: How did they find you? Why did they want to work for you? Change the avenues you usually look for candidates, if needed, based on their answers. If you are finding candidates that have worked at several dealerships in recent years, this should be a red flag that they will not succeed or last very long at your store. Maybe you should consider hiring someone from outside the industry, with no dealership experience, but a lot of enthusiasm for the business. One of our clients had success in hiring several salespeople that had been working at Best Buy. These candidates were proficient in explaining the “gadgets” and technology available on various models. The dealer was able to offer these candidates a pay package that would double their current income. Keep in mind it may take a year or so for that individual to develop his or her skills, but it may be worth the gamble in the long run. Also, make sure that your sales staff reflects your customer base. Make sure women, minorities and younger adults are adequately represented in your sales force. You want your customers to walk in to your store to a welcoming face.
To attract the right candidates, make sure that you maintain a clean, neat and inviting workplace for all employees. A team atmosphere that has clear policies that apply to everyone is paramount. Make sure that there is adequate training, and consistent on-going training, as well as a mentor or coach that new hires can rely on. As always, competitive pay plans, opportunities for career advancement, reasonable sales goals, fair benefits, and predictable work schedules will help attract the best candidates. Consider supporting or sponsoring community events, scholarship programs, and/or internship programs to generate positive impressions of your store in the community and attract people who want to work for you.
In order to retain the successful sales staff you have, consistently review and evaluate your employees and gather feedback from your employees. Make changes, if needed, based on this feedback. Remember the cost of replacing and training new salespeople far out ways taking the time to listen to your key salespeople. Financial incentives are a must, but consider other options such as flexible work hours and small perks. Long-term employees become the face of the dealership to customers who appreciate doing business with the same people each time they come to the store. However, don’t be afraid to replace someone if you feel he or she could be doing a better job.
Although this article is geared toward seeking, attracting and retaining salespeople, it can also be applied to managers. It is worthwhile to note that our most profitable clients have familiar faces in key manager positions. The key here is to find competent managers and retain them.
Combat the issue of high employee turnover by focusing on seeking, attracting and retaining the right salespeople for your store. The best sales staff will create a positive shopping experience for your customers. Utilizing these suggestions should increase your customer base, reduce absenteeism, reduce costs, improve employee morale and, most importantly, positively impact your bottom line.
If you have any questions about this topic, please contact Paul McGovern at 800-849-6022 or at PMcGovern@DowneyCoCPA.com.
