Extra Layers of Expense Not Necessary
Reid Richards
Executive BDC Coach @ Car Motivators | Bachelor's in Communication | Doctorate’s in BDC
Question? Why do dealerships keep adding more and more layers of expense?
First was the F&I department - huge layer of expense and not necessary - https://www.digitaldealer.com/paul-walser-walser-automotive-group/
"We eliminated the finance function, in terms of having a second face the customer has to meet. Now our hourly sales people also handle F&I with their customers. We’re rolling this one-face idea out in service as well, so customers deal with only one person, not several, which they don’t like. This new plan and the elimination of F&I as a second step in the sales process have completely changed the culture of the company."
Second was the Aftermarket department - which has evolved into an empty office or the F&I department handling ....
"Remember there are 79,695 aftermarket choices available to your customers, while there are only about 21,650 dealership choices. The aftermarket is more convenient with almost four times the number of locations that are open usually seven days a week, offering more available hours per day. They will be happy to service your customer’s vehicle “today†or “tomorrow.†The aftermarket is all about convenience! How does your dealership measure up? There is a $45 billion market out there. Are you getting your share,"
Third was the Internet department - First I'd like to say Internet is a lead source that should be handled by the BDC. Complete waste of resources..... https://www.autodealermonthly.com/channel/dps-office/article/story/2008/02/keep-expenses-under-control-the-delicate-balance-between-sales-and-expenses.aspx
Fourth was the BDC department - we added a telemarketing facility, gave everyone a club and told them to get to work..... my BDC reps dial 300-600 in a day .... lets get your BDC reps PUMPED UP!!!!!!
www.salestoservice.com
follow-up
7 å¹´As a 1st-gen BDD the whole world of "internet sales" was brand new and re-invented as years went by --- but some got stuck at certain points and claim that BDC - circa - 2001 or 2012 - is the correct way. I hear top trainers spouting OBSOLETE processes every day. Which of is is most destructive ? Wow ... there are so many to choose from ! I choose --- ??----MATH. After "me - money -machine" the 4th reason ( of 12 ) why dealers fail is MATH followed closely by the 5th M for MANAGEMENT ... because they make wrong decisions from BAD MATH. Such as what ? Can I really get into it here ? Ok ... a little bit. 20/20 A salesman should sell 20 cars in 20 days. Assuming he is an average .250 hitter that means 4 write-ups per day. Produced by all sources including location - web - whatever. Later I will do the math correctly - unless Reid wants to finish the numbers for me. Each salesman needs 4 opportunities per day x 20 such as 10 sales from 100 leads etc. But when crunching these numbers --- do not omit that his 20 sales from 80 opps includes 60 fails ! Those 60 and then the no-shows and while we are digging no appoints too. 90% of leads buy something from somebody else. Bravo ???? for 10%. And you floor %.