Run Faster Management
/Run Faster Management
Once I had a manager ask me what I thought of his 6-car salesperson. He asked If I thought that was a good job? My answer was "it depends". If he had 6 customers for the month, it is an amazing job. If he had 50 customers for the month, it sucked! Now my question is, did the manager know the answer? The approach to coaching this salesperson is going to change dramatically based on what the answer is. We just can't go pull the salesperson's pants down in public and scream "Run Faster"! We coach how to run faster and, to do that, we have to understand the effort and measure it.
Attending a military college showed me a smorgasbord of leadership styles. Some were inspiring and others I resented the hell out of. I understand I have an inborn problem with authority; however, the main difference between the two, was respect. Did I respect the individual giving the order, or was he a complete poser focused solely on selfish self-promotion. Look the part, talked the part, but couldn't be the part. Unlike the military where you can wear your respect as an insignia on your collar, in the car business you have to earn it. I don't care what your business card says.
This is my favorite part of the car business. You earn respect by moving the needle. We have something very tangible to measure. How many cars, how much gross. It doesn't matter who your brother-in-law is or how good looking or charming you are - how many cars! We don't promote mediocrity, you have to be good to move. For those of us that understand results and don't have the patience for corporate, political posers, this is a great career!
Lead Motivate and Train
The basic principle to earn the respect of your sales force is Show them how to sell more cars and make more money, and you have to own it with them. Show them how to achieve a sense of pride in themselves by becoming a successful professional. Being a buddy or bully is not going to work in the long run, we have to show them how to move the needle, most times, one customer at a time.
Forecast
- Let’s find out exactly what the salesperson wants to get done this year and why.
- Then let’s explain exactly what the effort has to look like on a monthly, weekly, and daily basis to make that happen.
- Then let’s hold them accountable on a daily basis - Beat ‘em with it.
Team meetings
- I would like to say that everyone is a self-starter that will show up 100% of the time ready to give 100% effort, but they don't. This is a good time for a motivational/training session.
- Identify anyone who hasn't sold a car in the last three days. Panic and commission breath are right around the corner. Get them a deal TODAY...
- Anyone doing consistently well (17 or more every month) - make it voluntary. They don't need you and your time will be better spent helping those that need it.
- Start with the guy doing the best on his forecast and then cut him loose.
- End with the guy doing the worst. Make him sit there and listen as you coach the others. Then, if you have to go to 2x4 coaching, no one else will be there to hear it. It will be between you two only.
- Line up the work they need to do today
- Who are the Hots we need to get back in TODAY?
- Rehash - give them ideas that might make the appointment
- Deliveries - Delivery details
- Save a Deal - Do they have a turn down we need to rehash
- Prospecting activities (2 hours’ worth)
- They only respect what you inspect.
- Check the progress at 11 am, 3 pm and before they go home.
- Spot check their work by calling some customers as the manager. If someone is lying about the effort, you are not going to be able to help them. Tell them that this is the 1st talk of 3 - 3rd talk will be the last talk.
The T.O.
- Everyone - Every Single Customer
- We used to say No one walks until the boss talks.
- The salespeople need to know you’re serious about this. If you take a pass on a T.O., they notice and you have a new standard.
- Even if you just thank them for coming in - take the turn.
- Teach a proper T.O.
- A closing T.O. should be with the customer still sitting down. A T.O. at the door usually doesn't go well. If it happens, the objective is to first get the customer sitting back down.
- When you go in a closing T.O. - Hold the gross. At least three times make an argument to hold the gross. Make the salesperson sit there with their mouth shut and listen. Next thing you know you will hear the salesperson making the same arguments with another customer, on their own.
Once, as a salesperson, I was in a close where I had told the customer no on the discount for the last 30 minutes. For the last 30 minutes, I was making an argument on why they should and could pay my price. I figured all they needed to hear was a blessing from a manager and this would go. I called in the manager for a T.O. and the first thing out of his mouth was OK on their price. He literally pulled my pants down in 30 seconds. Afterwards, he was bragging about closing my deal like he was anointed a closing god from on high. Frustrated that he handed away $200 of my commission, I told him "Hell I could have done that 30 minutes ago." Tagged a poser in my mind, I never called him in again. From then on, I would use another salesperson who was a closer and introduce him as the sales manager.
- Green Pea T.O.
- Just to share some best practices, I had a store that did very well with new salespeople. For some reason, we could drop off a batch of freshly trained recruits and they would do remarkably better in their 1st month than any other store. Retention, moral, and just the fun quotient were great. As a result, this store grew to be one of the largest stores in the state with a floor of fresh recruits.
- 3 T.O.'s on the same customer
- Usually if a new salesperson is having problems, it is because they are on the wrong car. So, this store would have the managers meeting the customer just after the Meet and Greet. They would counsel the customer and make sure the right car was selected.
- Then they would meet the customer again as they came inside from the demonstration drive and measure mental ownership.
- The salesperson would present the numbers the 1st time and then the manager would take over.
- It wasn't long and they had a grooved professional salesperson.
- Just think, rather than the customer wondering who this "man behind the curtain" was, he already met him twice before the numbers.
The question is, how do you want your sales team to leave the store tonight? As winners beating on their chest, howling at the moon or dejected, frustrated, and exhausted from being berated all day.
Your dealer doesn't need any help to lose money, we can do that all by ourselves. This team is assembled to excel to heights of world domination, and you are in charge of that cadence call. Your achievement is going to come as a direct result of your sales teams’ achievement, and remember - Respect is a two way street.