Goal setting for Automotive Salespeople

Goal setting for Automotive Salespeople

 

Goal setting for Automotive Salespeople

All too often in the Automotive world, we let our salespeople fend for themselves every month. There are not enough dealerships, managers or salespeople that sit down at the beginning of every month and set a REALgoal for each person on their sales team.

In most dealerships, there is NO GOAL SETTING being done at all. And in some dealerships, the goal setting goes something like this…..”okay John, you sold 10 vehicles last month! This month….lets do 12!!” This type of goal setting accomplishes nothing!! We haven’t given the salesperson a REAL plan of HOW they are going to get to their goal.

When sitting down with your salesperson to set their goal, they have to see the old “W.I.I.F.M” (what’s in it for me). The best way to do it is to forecast how much MONEY they should make. And while money is NOT the only motivation that a salesperson has, it is how they pay their bills!

To start, you are going to need some simple metrics. I like to take the last 90 days worth of sales and commissions that an individual salesperson has accomplished.

Metrics needed:

  1. A monthly average of total money earned
  2. A monthly average of total vehicles sold
  3. A monthly average of commission earned per unit
  4. A monthly average of the total amount of clients that they spoke with
  5. A monthly average of their closing percentage

Let’s use these numbers for an example:

  1. Monthly average money earned – $ 2,750.00
  2. Monthly average cars sold – 10
  3. Monthly average commission per unit – $ 275.00
  4. Monthly average of clients spoke with – 50
  5. Monthly average closing percentage – 20%

NOW…when you sit down with your salesperson, you can “goal set” intelligently!

When the Manager counsels the salesperson on a daily basis, they can track and look for ways to increase the salesperson’s metrics.

I believe the goal setting for the month should reflect a 10% increase for the individual salesperson. And remember, I like to “goal set” using money.

A 10% increase in money for this salesperson would be another $ 275.00 or a total of

$ 3,025.00.

The salesperson now has to see what they will have to do to earn the 10% increase. There are several ways the salesperson can get there.

  1. If they maintain a 20% closing ratio, they would have to speak with an additional 5 people during the month or a total of 55. Let’s say they work 24 days out of the 30 in the month. They would need to speak with an average of 2.3 potential clients per day. When the Manager is doing their daily counseling with the salesperson, they can track this metric to make sure the salesperson is speaking with enough clients to reach their goal.
  1. What if the salesperson develops their skills and increases their closing percentage to 22%? The salesperson could then speak to the same amount of clients, (50) and sell 11 vehicles and thus meet their goal for the month.
  1. What if the salesperson develops their skills and averages a higher commission per unit? If they average $ 303.00 commission per unit they would also meet their goal.

Heavens forbid that the salesperson actually speaks with MORE clients, closes them at a HIGHER percentage and averages more PROFIT per sale! That would be the Monthly trifecta of car sales!! (I will get off my soapbox)

As leaders in the industry, it is our MISSION to get our people better! They need guidance, motivation, education and stimulation. They need discipline, practice and skill building. BUT FIRST…….you need to have a REAL plan on how you can help them get there. A “roadmap” of how to make more money, sell more vehicles, close more clients at a higher percentage and make a higher average commission per sale. The individual salesperson must SEE the metrics to genuinely understand HOW they are going to reach their goal!!

Otherwise……..we are just “hoping” that they will get there on their own!!

 

About the Author: From a Salesperson to a Dealer, I have a vast amount of experience in all areas of the automotive environment.

You can follow me on:

My website: www.JimKristoff.com  

Twitter: @jimkristoff

WordPress blogsite: http://jimkristoff.wordpress.com/

Blogspot blog: http://jimkristoff.blogspot.com/

DealerElite.net: http://www.dealerelite.net/profile/JimKristoff

Automotive Digital Marketing.com: http://www.automotivedigitalmarketing.com/profile/JimKristoff

LinkedIn:  http://www.linkedin.com/in/jimkristoff  

Youtube: www.youtube.com/user/jimkristoff

Views: 195

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Comment by Ernie Kasprowicz on October 8, 2012 at 12:04pm

Thanks for presenting an easy to follow plan.  I agree WIFM is a key and find it to be more powerful than money.  The "why" is why a person will pursue the things needed to accomplish the goal.

Comment by Jim Kristoff on October 2, 2012 at 12:26pm

Thanks Marsh!!

Comment by Marsh Buice on October 2, 2012 at 10:04am
Great post Jim! I have a spreadsheet for each of my salespeople that shows their ups, demo, write up, sales,deliveries, and monthly grosses over a 12 month period- that way we can look at the averages and build from there. As mgrs we tell our sp they need goals but are so preoccupied with making a day we alienate the ones that make our days better and more profitable. You offer a great step by step program that mgrs can institute now. I work with my crew each week, we review their efforts over the past week and work from there. I find when u do, they are more conscious of their daily efforts. Thanks for the post brother.

About

DealerELITE created this Ning Network.

Blog Posts

Gubagoo Adds Live Video Streaming to its Omni-Channel Communication Platform

Posted by Crystal Hartwell on September 19, 2017 at 11:05am 0 Comments



Automotive dealership staff can stream live video during a…

Continue

Compact SUVs in Strong Demand

Posted by Black Book on September 19, 2017 at 11:04am 0 Comments

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes. …

Continue

Compact SUVs in Strong Demand

Posted by Black Book on September 19, 2017 at 10:58am 0 Comments

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes.…

Continue

It's Just A Recall

Posted by AWN INC on September 19, 2017 at 10:00am 0 Comments

Most of us address recalls as “just a recall, not warranty.” In tech meetings, we do have to address all factory payments.

I love the meetings when they are about the beloved subject of warranty. There are usually only three types of…

Continue

de sponsor

Get Newsletter

dE Sponsor

© 2017   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service