Used Car Dealer Magazine

FEB 2018

Used Car Dealer Magazine, the official monthly trade magazine of NIADA, offers readers the most current news and info on such topics as industry trends,technology,financing,marketing and dealership operations designed to increase profitability.

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Page 64 of 78

FEBRUARY 2018 ← BHPH DEALER 15 performance and make it a part of your daily/weekly/monthly management strategy. Maintain high performance standards and expectations across the board: One of the most elusive and rewarding conditions for any sales team is having the absolute belief they are the best. Professionals know what it takes to succeed and professional organizations should foster activity and performance objectives in line with both their profit and culture goals. Maintaining the highest standards of excellence includes a focus on your sales process and CRM usage, management practices, inventory management, marketing strategy and the appearance and condition of your team and facilities. Sales needs to have a stake in portfolio performance: There are a lot of ways sloppy or self-motivated salespeople can negatively influence the outcome of a sale. The sales associate is the only person being paid when a deal is originated. Everyone else is on the hope system, as in, "We hope they make enough payments to cover our overhead." There is much that can be done up front to manage both customer expectations and performance. That is generally accomplished through defined sales roles, a consistent sales and closing process, and post-sale follow up. Measure your contract performance by salesperson and determine percentages for first-payment defaults, 90-day defaults and 180-day defaults. People who have consistently high early default percentages represent additional training and coaching opportunities. Own your mistakes and learn from them: There is no shame in making a mistake. Without risk, there is no reward. Strong management teams own their mistakes, admit when they don't know something and learn from what happened so they won't make the same mistakes again. Many organizations are fixated on assigning blame to anyone other than themselves rather than owning and learning from their mistakes. W. Steven Brown, in 13 Fatal Errors Managers Make and How to Avoid Them, said, "People fail in direct proportion to their willingness to accept socially acceptable excuses for failure." Put your best efforts into inventory acquisition: Buying quality inventory is operationally the most difficult thing we do. So much of our success or failure comes back to the car. Buying it right and reconditioning it properly really are the keys to the castle. Don't cut corners on inventory acquisition. Go to more sales and look at as many cars as possible. Quality inventory can make so many other things easier. The year ahead looks to be a fantastic one but we must be prepared. Success will go first to the organizations prepared both physically and mentally. It will not just happen. Our business is still forgiving – just not nearly as forgiving as it has been in years past. DAVID BROTHERTON IS A MODERATOR/ CONSULTANT FOR NIADA DEALER 20 GROUPS. HE CAN BE REACHED AT DAVID@NIADA.COM OR (941) 371-7999. THE YEAR AHEAD LOOKS TO BE A FANTASTIC ONE BUT WE MUST BE PREPARED. SUCCESS WILL GO FIRST TO THE ORGANIZATIONS PREPARED BOTH PHYSICALLY AND MENTALLY. IT WILL NOT JUST HAPPEN. FIND OPPORTUNITY Tune up your tax plan with professionals who aren't afraid to get their hands dirty. WEALTH ADVISORY | OUTSOURCING AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliŌonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 26-0546 | ©2017 CliŌonLarsonAllen LLP

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