Need Help, How can we motivate sales people to work for us?

We are a Independent dealer in Hawaii, and have been for the last 22 years. I basically don't have any franchise dealer experience or training. I've had to learn everything by the "seat of my pants", through webinars and through NIADA conventions, Digital Dealer conventions, and through attrition from peers and employees and our HR advisor.

I never really learned how to attract talented sales people. I have a couple of quality ones that have taken me years to attract.

I found them both on Craigslist. Since then, over the last 2 years, I haven't been able to attract anyone to work for me.

I'm not sure what I am doing wrong. My sales guys make up to 30% front end, a full 20% on back end products and points.

They average 14 cars each per month and average $2800 front end profit and it really varies on back end in that we haven't been trained as well as we could be, but we usually get a point or two and sell either a warranty or gap with every other car we sell. (we lack process)

We are hooked up with indirect lending with almost every bank on Dealertrack including Wells and Ally.

We have 60 late model cars, trucks and suv's (average age 2013)

We own or dirt and have a 4 bay service facility with 3 Tech's We make all types of car keys and can program them as well.

We have factory level scan tools and repair vehicles other shops including franchise dealers can't fix (they bring them to us)

Did I mention we are one block off the ocean, next to McDonalds in Kona Hawaii?

We are nice to our employees, have a profit sharing program, birthday parties with lunch of the birthday person's choice cake and ice cream too! Free Health Insurance, dental plan, eyeglass and drugs. Paid Holidays

What are we doing wrong? Why can't we attract sales people? Should we use a recruiter? Does everyone have this problem???

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Comment by John Caudell on February 28, 2017 at 9:32pm

Robert,

I really appreciate the feedback, we have the look and feel I believe (fresh eyes might see it differently)

I really think you hit it on the head with the process part. My guys are older, seasoned and do it their way. I'm ok with that for lack of a better, teachable process. I'm sure we could do better in the F&I department. For the most part they are really good at holding front end gross at 1K above retail Kelly. Not sure of how receptive they would be to F&I training or as an independent, who I should approach to get training. Also I really suck at measuring results and managing salespeople in general. I need to either fix me or hire another me to be me. Thats what I think.

Comment by Robert Ogust on February 26, 2017 at 4:00pm

So John,  it sounds like you have developed a very nice business.  Kudos to you and your team for your growth and demonstrated care for your associates.

Just curious... how does the facility look?  Clean, bright, inviting?  How about the "feel" when you walk in... inviting, calm, fun?

When was the last time one of your valued Associates brought someone on board that they thought would be successful and a good addition to the team/family?  

By stating that you lack process could also make associates uncomfortable.  Everyone looks for proper direction.

Making good grosses and offering a good payout is obviously good for some of your associates and has done you well... have you thought of alternative pay plans for a different generation and/or gender that values personal time as much if not more than money? Have you considered a salary plus a unit bonus for a large group that is afraid to take a purely commissioned position?  

Are your Associates as invested in the company's vision as you?  Are you invested in your Associates' success... just as important do they believe you are?

John, I'm not saying that you don't do any of these as it sounds like you've really got it going on.  The business has evolved quite a bit over the past 22 years and will continue to evolve as well.  You should be very proud of what you have accomplished.

I could be way off base, just some food for thought... or as one of my favorite speakers says... "I'm just sayin'"

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