Dealer Plates and Real Estate Signs

Dealer Plates and Real Estate Signs

Maybe this is just a coincidence but it was a trip none-the-less. We spent part of Sunday checking out open houses. With the real estate economy doing what it's doing in Portland Oregon I just had to hit the road and see for myself. I'd say the average price house we looked at was between 1.3Mil and 2.7Mil

Check this out& Out of the 9 houses we took a look at; 6 had cars in the driveway with a dealer plate on the back. No kidding and these aren't the kind of houses that people trade up from if you gather my meaning. If I was looking for a dose of realism, there it was.

Yet I found myself shaking my head and saying to myself "What are these dealers thinking?" Are these dealers just gonna take it in the shorts and throw up the "for sale" sign? "Sorry kids time to switch schools, daddy can't sell any cars." I'm serious these were some well known dealers in our community. Been around longer than a couple of years and all these houses were under two years old!

I see fear setting in and when I talk to dealers in person (outside of our client base) I hear them folding not fighting. They're so busy building Tsunami shelters they're not giving time for much else. I go back to my Feb article for the Dealer Business Journal http://www.dealerbusinessjournal.com/articleview.php?id=559-35426 "How The Smartest Dealerships Make The Most Money During The Worst Years." and I think to myself, "are that many dealer's really going to allow themselves to be the effect of their environment rather than the cause over it?" Well in case you're a dealer that still thinks there is money to be made here are a couple of tidbits that I would strongly advise taking to heart.

1) Look at every opportunity like your ass depends on it. If someone says that chicken crap can help you sell cars you might want to pull up a chair and listen to the chicken crap pitch. The dealers in our group are on a plan and the economy has little to do with it. Find your plan.

2) Start recruiting! High-talented employees will be easier than ever to recruit; If you have a plan that you can sell, you can steal some kick-ass car people this year and it all comes down to people.

3) Know that in times like this market share always makes its biggest change of hands between competitors.

4) Pencil your dealership based on your goals (hopefully you have your plan) Make your budget serve your goals not your fears. That doesn't mean get prepared it just means be smart.

5) Separate the industry being slow from you being slow.

6) Own the reality that market share is market share. In any given month more vehicles are sold in the worst of markets than you have sold in your best month.

7) Be comfortable taking market share. Don't laugh, you'd be surprised to know that this is a hot button for 70% of stagnant dealerships.

8) Don't use money to manipulate the sales staff into performing better. Believe it or not money is the least effective motivator in the world. Duty by contrast is the highest. Debate all you want and the facts are still the same. Ask anyone who has a career that puts their life at risk if they do it for the money and you'll learn quickly that it just doesn't stir the motivational Koolaid.

9) Leave the pay plan alone unless you're positive it's the right move.

10) Tap into your archive deals and orphan owners database like a keg at a frat house.

11) Effectively handle your special finance business. During down times this is an area that can make all the difference but you have to approach it the right way. It's not a quick fix and dealers that take the shot gun approach to special finance can make a mess in a hurry. If you're new to special finance then find a buddy, get some advice and get moving.

12) Create your own dealer 20 group made up of people that have their heads screwed on straight. Nothing worse than sitting through a 20 group listening to a dealer whine under the disguise that they're really looking for a solution. If their positive, they'll bring positive info to the group, take positive points away and leave the rest at home. This is not the year for mental counseling, it's a year to take market share and talk about it later.

13) Mystery shop the competition personally.

14) Remember most of the dealerships that comprise your competition will be dealing with down times by over stressing the sales & management staff, which leads to anxiety, which in turn leads to poor performance. While they're asleep at the wheel, be smarter, listen better, take your market share and then pull the For-Sale sign out of your front yard. Your family will be glad you did.

15) Only a dealer that thinks they have what it takes to win would read this to this point! Nice work. Click your reply button on your email program and please give me your feedback before you switch gears.

Eddie Coleman is the CEO of Hyperdrive Technologies Inc. in Portland, Ore. and the author of the automotive industries two best-selling, full-length books, Mastering The Art Of Selling Cars Online and 101 Internet Sales Objection. Eddie can be reached at eddie@hyperdrivetech.com or http://www.HyperdriveTech.com