COVER STORY
Time to RecessionProof Your Dealership By Michael Renaud, General Manager, Alan Ram’s Proactive Training Solutions With new inventories at record low levels, used car market pricing moving dramatically, and profitability at an alltime high for many dealers, a declining SAAR could be a leading indicator that things may be about to change, maybe not today, or next month but we can all feel the earth shifting a bit under our feet. And we are not alone, analyst predictions are mixed as to what the rest of 2022 looks like, so let’s start preparing now!
In Good Times, Don’t Let the Basics Fly Out the Window When times are good, sales are booming and profits are high, it often prevents us from sticking to the fundamentals. Suddenly there’s no need to confirm that appointment and you aren’t rushing to make those follow-up calls anymore. You can become lackadaisical and like Alan always said, “Good times create bad habits and Bad times create good habits. Let’s not wait till times get bad before we start working on good habits. All those basics you learned as a rookie, and your car sales training, suddenly go out the window because you’re living the high life, baby. But then what happens when the market turns and you need to keep yourself recession-proof? Aside from knowing the steps to selling a car, successful salespeople will also look for ways to create opportunities, versus waiting for them. They learn how to generate and cultivate opportunities and practice those habits daily. Have you lost focus on the basics?
It’s Time to Recession-Proof Your Dealership There is one thing you can always count on in the auto business and that is the effect of economic swings. Vehicle sales are a leading indicator of these swings. When those highs begin to drop, suddenly you realize you are headed into a deep economic abyss where you are struggling just to get a lead to call you back. Despite your previous six-figure paycheck, you are back out on the front line waiting for someone, something to close, or struggling with what to say on the phone. Your team is giving away all the gross, getting about a quarter of the inbound sales calls you were getting before, and desperately discounting your merchandise even before you’ve set an appointment with the lead. Now is the time to avoid the abyss and prepare your dealership to make you and the dealership recession-proof.
The Hunter Versus the Farmer When it comes to sales performance and work habits you can generally classify all salespeople into two categories: The Hunter and the Farmer. Hunters typically make great closers. They know how to react off-the-cuff, and they know their targets when they see them. Just like a hunter, they’re quick and impatient to shoot. Hunters can seem aggressive, in control, and laser-focused on immediate results. They find their stoop, shotgun in hand, and wait to shoot. If nothing passes, they don’t shoot, and they don’t eat. Every dealership needs a set of hunters or closers that they can rely on to “strike while the iron
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is hot.” Hunters can close opportunities in the showroom at any given time.
The most successful salespeople in this industry understand the importance of cultivating and generating opportunities on their own. Unfortunately, these types of salespeople tend to have such a strong focus on those immediate results that they lose focus on how to create opportunities. This is exactly what leads to that vicious up and down income cycle - crazy record-breaking sales months and incredibly fat paychecks, followed by the proverbial plunge to smaller checks and angry spouses. Farmers on the other hand are generally much more patient and pay more attention to the small tedious steps necessary to create more opportunities. They are not as concerned with temporary satisfaction. They’re not looking for a one-and-done feast for the night or hanging on the point and waiting for that lucky buyer. Farmers will put in the work, sometimes behind the scenes. They’ll take those small steps to carefully cultivate not one- but several- opportunities. Farmers tend to get placed in the back of the business, like
