Managers Complaining They Can't Hire Salespeople.

I visit a lot of dealerships in the course of a week.  One complaint that I am hearing is they "can't get salespeople".

Here is a decades old fact: 87% of people, that attempt car sales, are out of the industry in a year.  That was published by NADA thirty years ago and I doubt that it has changed.  

I am amused to hear managers complaining that they can't hire salespeople.  I was talking to the new car manager at a Lexus store.  Their top salesperson, last year, made $44K.  This store requires that salespeople work bell to bell on Saturdays and the last week of the month.  

A General Manager told me that salespeople should make $4500/month at the most.  Understand that he might have finished high school and began his career as a salesperson and last year made a half a million.

I believe that dealerships are going to BDCs in order to replace salespeople with $10/hr employees.  This endeavor is costing most stores even more and destroying closing ratios. 

We have more unemployment than any time in American history and dealerships can't get salespeople.  Do you think this will improve as the economy gets better?

The only reason someone should want to be in the car business is for the money.  In the absence of that, they need to go into the trades.

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Comment by Doug Davis on June 30, 2013 at 11:07am

Dealerships are only as good as their people. The difference between market leaders and the average or sub-par dealerships remains the quality of their people.  The better dealerships want to pay their people.  They understand the cost of turnover.  They continue to dominate their markets, making gross and retaining good profits.  

Look at the large dealer groups.  You rarely see a market leader from these.  You would think it would be different.  

You can't pull a big wagon with little ponies.

Comment by Pat Kirley on June 28, 2013 at 3:11am
Agree totally, it goes back to the old saying "pay peanuts get monkey"
Comment by Clifford Patterson on June 26, 2013 at 3:37pm

There is a saying "Compensation must be equal to or greater than frustration".

Just an observation.

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