Evolution of the Sales Manager

Sales Managers of today need to encompass both Internet and Traditional skills, with a progressive forward thinking perspective.

Today’s automotive market place no longer rewards dealers who still use draconian methods to sell their inventory. Simply adding a few thousand dollars profit on top of the cost, putting it on the lot for sale and hoping to get lucky. Depending on the source used 80-87% of all vehicles sales now originate online. If you are not competitive in today’s technology driven buying world your days in this business will be short lived.

Having a solid grasp on all aspects of front-end operations will be essential. A multi-dimensional manager will be the foundation of any successful automobile dealership. Technology has propelled the evolution of the car buying process to a completely new dimension. Dealerships holding on to the “Old School” mentality and process will be forced to either play catch-up or to eventually close the doors. Understanding how to implement a successful Internet marketing strategy will be the key component in the success of all auto retail stores of the present as well as the future.

Rapid inventory turn and high volume with a focus on customer retention will replace the dated theories of yesteryear car guys. This business model will significantly boost profits and increase the dealerships customer database. Every statistic available goes to further prove the fact that dealerships are evolving and fixed-ops departments are where profits lie. Front-end departments will build solid lasting customer relations and the fixed-ops departments will be responsible for the retention and longer-term profits, maximizing annual bottom line profits.

I.e…. 5 cars on an average of 17 day turn @ 800/600 front profit equals $7000 front gross as opposed to 2 cars on 45 day turn @ 2000/600 equaling 5200 front gross, not only are you 1800 ahead in gross BUT you also have added an additional 3 customers to your database!!

Dealerships who still operate under the old school mentality of “Gross is King” are the ones struggling to keep their used car departments afloat. Why is “Water” in the used car department such a chronic problem across the country? It is the lack of intelligent, forward thinking managers. Until this industry purges itself of the guys who have no desire to grasp and understand the tools that will be come the mainstay of this business it will not get better. I am referring to the guys that think “I am the best car guy in the business, there are no books or computers that can tell me how to do my job better, I know everything about used cars.” A “gut feeling” is all they go on for appraisals, stocking and pricing of their used car departments. Neither market data nor any other analytical factors play a part in these crucial decisions. Once these root issues are addressed by the dealerships of the today they will position themselves in a place that enables a market share shift within their respective region. Steal market share from your competitors and sell cars, how much better can it get than that?!

New/Used vehicle success requires a new way of thinking. Traditional mediums of the past are falling to the way side at an unbelievably fast rate. Everything is shifting to the internet for ease and thoroughness of information available. A more intelligent shopper requires more intelligent dealership personnel. Online advertising, tools and staff will be the key factors in a dealerships success.

Over the next couple of years we will see the “Internet Sales Manager” and “Sales Manager” positions meld into 1 position. A sales manager who can not effectively oversee the internet driven traffic and sales will no longer exist. This merging of the 2 positions into 1 will bring forth the best people with the most knowledge and foresight to implement and execute a successful plan to keep the dealership sales bolstering. Superior managers utilizing the best technology available will be a requirement for any dealership who wants to remain & thrive in the automotive retail industry.

Managers who spearhead the sales department’s tactics will no longer rely on the antiquated methods of yesteryear.

Communication, comprehensive understanding of implementation & execution of technology, personal skills and a willingness to evolve with the industry will be essential management requirements.

Sam Griswold