Sales slow-down is coming - 5 ways to strengthen your team's sales 'muscles'

Sure, 2015 was nearly a record sales year for the auto industry, and overall, there is a year-over-year increase in sales so far in 2016, but there is a storm coming. The used car shortage which has propped up trade values for the past few years is long gone, and worse, there is a huge glut of used cars in the pipeline headed off lease. As these cars come off lease, they will quickly suppress used car wholesale values. All of a sudden, you’ll be a grand or two lighter on Ford Fusions or Nissan Jukes that you’re used to. It will quickly affect both the amount of sales that can be made AND nick gross profit margins as dealers have to dig deeper to make deals.

According to an article March 7, 2016, the 2016 Used Car Market Report, Cox Automotive chief economist Tom Webb acknowledges the “justifiable concern” that off-rental pricing will be hurt by the surge in off-lease cars.  But he also points out that OEM incentive and inventory practices will play a bigger role in the fate of off-rental prices — which is typically the case, he said.

The drop in values doesn't put it at 2008 levels, but they are clearly trending down, relative to last year. Then there’s the eventual domino effect on retail pricing, as vAuto and other valuation tools start to notice the lower asking prices from dealers who snapped up these units at the lower prices. So now your EXISTING inventory will be at the higher end of the price spectrum, competing against units that were acquired for hundreds or thousands less. Is your team ready for this challenge?

All is not lost. Just like bears have to go back to hunting when summer campers stop leaving food out for them, sales staff and managers can sharpen their skills NOW for prospecting, building value, product demonstrations, closing, and follow-up. Here are five ways to shore up your income defenses:

  • Identify the weaknesses in your team, and find a strategy for improving them
  • Determine your strengths, and make them stronger
  • Find a sales training regimen - and stick to it. In-house is great, but just like kids will listen to their coach more than their parents on some occasions, a third-party training option is a wise choice
  • Take a look at CSI - in a challenging sales environment, a culture of customer care will make a massive difference
  • Keep your head around digital marketing game. Paul Potratz says you don’t have to be an expert, but you have to be aware of your ROI

Hitting a 16 million SAR in auto sales for 2016 may be a bigger challenge than many dealers think after a banner year in 2015, but there are still some chinks in our economic armor and more than a few grumblings about some weak key economic indicators. Just a bit of preventive maintenance to sharpen your sales team can position you well to compete in an unpredictable market.

Tom LaPointe CarChat24 Marketing Consultant 24/7 Interactive Automotive Dealer Website LIVE CHAT Solutions Managed Chat, Backup Chat Support, and chat software options 727-638-0195

A U.S. Marine Corps veteran, Tom has an MBA in Marketing and is an automotive writer and author with nearly 20 years experience in virtually every aspect of the retail auto industry. He has been involved with the internet from the beginning, building websites at Johns Hopkins University in the 90's, and has been a performance leader in nearly every dealer role, from sales and service, to BDC / internet sales and viral marketing.

Views: 55

Reply to This

Latest Activity

Profile Icon via Twitter
Our Advice for New Salespeople -
Twitter3 hours ago · Reply · Retweet
Damian Boudreaux's blog post was featured
3 hours ago
John Sternal posted a blog post

Auto Dealerships See Avg. 20% Rise in Profits Under DOWC

According to Protective Asset Protection, it is estimated that auto dealers leveraging a…See More
12 hours ago
Black Book posted a blog post

Depreciation Rates Improve

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car…See More
14 hours ago
Jim Flint posted a video

Website Taxes

Are you paying "tax" on your website to Google? CEO & Founder of Local Search Group Jim Flint explains in this video blog.
15 hours ago
Damian Boudreaux posted a blog post
15 hours ago
Simon Hopes posted a blog post

Getting Your Car Restored to Its Original Shine

Some of us may have had all good intentions of looking after our car when we first bought it. We…See More
19 hours ago
Profile Icon via Twitter
RT @Haydenfilms: Don't waste time on wasting time. Get your copy of #TheoryOfFive, written by our longtime friend and colleague, Mr. Chris…
Twitteryesterday · Reply · Retweet
Profile Icon via Twitter
Checking out "Bobby Compton ~ Motivational Listener" on @dealerELITE:
Twitteryesterday · Reply · Retweet
Profile Icon via Twitter
Twitteryesterday · Reply · Retweet
Bobby posted a video

Bobby Compton ~ Motivational Listener

Moreover, look for able men from all the people, men who are trustworthy and hate a bribe, and place such men over the people as chiefs of thousands, of hund...
Bill Wittenmyer posted a video

Witt's Wise Words: Super Workers vs Supervisors

Bill Wittenmyer shares the difference between super workers and supervisors in this week's episode of Witt's Wise Words. To read the full article, click here...
Scot Eisenfelder's blog post was featured
Daniel Ross posted a blog post

Males's Socks - Picking Design and Comfort

The most fundamental of all men's devices, and the one utilized for convenience as well as style is…See More
Samuel posted a blog post

Free Alternatives to Adobe Photoshop

Photoshop is an impressive piece of software, but it comes with quite a high price. If you're an…See More
Profile Icon via Twitter
RT @Automotive_News: Twitter appoints Google's Guy Schueller as new industry director of automotive
TwitterSaturday · Reply · Retweet
Profile Icon via Twitter
RT @Automotive_News: GM confirms Buick Cascada dead after 2019 model
TwitterSaturday · Reply · Retweet
Profile Icon via Twitter
RT @ChrisBSaraceno: Another Awesome Leadership Article by @DaveAnderson100 A must reader for ALL leaders
TwitterSaturday · Reply · Retweet
Profile Icon via Twitter
TwitterSaturday · Reply · Retweet
Profile Icon via Twitter
RT @ChrisBSaraceno: My Friend John Waring Ready for his TheoryOf5 Journey #winning #believe #autotrader #prosperity #success #family #marr
TwitterSaturday · Reply · Retweet

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service