Where have all the salesmen gone, long time passing?

Those of a certain age will recognize the title as a take-off of a folk song written by Pete Seeger. It was one of the most recorded songs of the early 60’s; appearing on albums by Peter, Paul & Mary, The Kingston Trio, Bobby Darin, Roy Orbison, The Four Seasons, and Joan Baez, among others. It was considered one of the most influential political songs of its time as it lamented the loss of flowers to young girls, girls to their husbands, husbands to becoming soldiers and soldiers to the graveyard. Unfortunately, the same kind of lament could be sung today concerning professional salespeople, especially in the automotive industry.

 

I’ve been around this business a long time. As a child, I can remember going with my father to new car intro day. For those too young to know what I am talking about, all manufacturers would release their new models on a specific day. They would sit on the showroom floor covered until that day and the unveiling of the new models was a big deal. My first job ever, as a teen ager, was at a car dealership detailing cars when I was in high school.

 

In those early days, being a car salesman was one of the most prestigious jobs in town. Job openings were few and far between and, when they did exist, the positions were much sought after. Margins in new cars were considerably higher than today and automotive salespeople made a good living. Few ever left the business and most stayed at one store the majority of their career.

 

As time went by, things changed. People became more aware of the wholesale cost of vehicles and began demanding higher discounts. Although Henry Ford offered the first automotive rebate in 1912, they became commonplace following the oil embargo of 1973 and have remained a staple of automotive manufacturer marketing ever since. It wasn’t long after those manufacturers increased the wholesale prices while trying to keep retail prices (MSRP) as level as possible, shrinking the margins to dealerships.

 

Shrinking margins and increased customer demand for discounting led to a sharp decline in the amount of gross profit per sale that salespeople’s commissions were paid from. This decline created a need for new ways for salespeople to create more sales and higher commissions so they could maintain levels of income.

 

As with many searches for a new way to do business, there was an easy way to do this and a hard way. Too many took the easy way. High pressure sales tactics, gimmicks and tricks to fool customers, misleading marketing and deceptive processes were, and are, hallmarks of this solution. The people working this system in dealerships were, and are, more con man than salesperson. Everything focused on making the most money from each sale. Widespread use of this “easy” solution led to customer dissatisfaction, complaints & lawsuits, decreasing customer loyalty and erosion of the industry’s reputation.

 

The professional solution was to become better salespeople. Those that followed that path continue to enjoy success and lead the industry today. The learned better techniques for discovering and understanding their customers’ needs, became true experts on the products they sold and learned to be a resource for their clients. They learned how to find more prospective clients on their own instead of depending on their manufacturer and their dealership. They realized they could use their clients to build a network to generate more potential clients. The adopted technology and tools to assist them. The kept their focus on customer service and building loyal customers; realizing that this would lead to more sales and more profit.

 

There was a time, not very long ago, when these professional salespeople were all but extinct. The industry had become overrun with the con men and the order takers. Far from its prestigious past, the job of being a car salesman ranked near the bottom of every survey; down amongst the lawyers and politicians.

 

There is hope, however. The professional salesperson is making a comeback. The practices of the con men are under attack from both within and outside the industry. Customers are demanding true professionalism when they buy a car. The thought leaders in the industry have shown a better way. If you have not joined the ranks of salespeople eagerly searching for ways to improve your skills, knowledge and processes; you will be left behind.

 

As each verse of the song ends, “When will they ever learn?, when will they ever learn?.”

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Comment by Brian Amberg on April 13, 2015 at 10:11am

Wow! Someone who can reference The Kingston Trio! Well said and 100% true Al. I've been a practitioner and proponent for the professional solution you describe for decades. I believe it is the only way the auto salesperson can have long term success in todays business climate.

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