There usually are many reasons why a dealership fails or does poor. To me one stands out far more than the rest. Just curious what you think the main reason is that dealerships fail or does poor. TALK  TO ME.

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Fran, I think one main reason any busy fails or does poorly starts when they lose the ability to learn. This world and business is changing so fast that the ability to embrace it, change with it and learn from it has caused many new and out of the box dealers to enjoy great success. When we have lost the ability to learn it becomes difficult to clearly see that the competition has grown stronger. Lastly I have seen over the years that when someone stops learning they soon lose their passion and drive for their business and defeat sets in.

Great Topic Fran!
Sounds like cancer to me Fran, It starts from the very Top!
If morale is down one person can start the cancer cell.
Good managers will keep good morale in the store.
Thats just a start!
When the dealer and management team insists on "doing it they've always done it" or "doing it" the way they did it, failure is imminent. Sales failure that is. The fixed operations and franchsise laws keep them in business and rich so why change?
Great answers guys. It does start at the top and managers are in charge of getting the job done. The problem is that it isn't being done on a regular basis. I seen meetings that are just that. No training what so ever. Or training once a week and that is usually ten minutes. Seems more complaining than training. However the best of the best take it serious and train every day in there morning meetings. This is like a por football team going to training camp and just stand around. No, they practice every day and train to be better. Maby thats why the playesr get paid millions each year. So do the managers. He who gets serious and trains the most makes the most.. I'am sure we forgot some thinks. What do you think. TALK TO ME.
They fail when income no longer supports expenses... or when the government allows automakers to breach contracts and shut them down. I'm not being trite, just pithy.

Blessings,
Mark
A FISH ROTS AT THE HEAD! Anytime dealerships fail is because the owner/owners fail, in turn the mgrs fail ,the sales staff fails,service,parts, body shop ,and the front office fails, Why? Chain of command , loses ability to focus, vision falls off the charts,Discipline turns into a three ring circus, so the THE ATTITUDE becomes sour and no one is paying attention to DOOM!
Reply by Douglas R. Manley

The number one reason dealerships fail is:

THE DEALER HEARS, BUT DOES NOT LISTEN.

I have been affiliated with four dealerships either as an employee or a consultant that went under. All four dealers said to me before they closed the doors:

"If I had only listened." Case closed.
The sales people don't have the proper systems in place to do long term follow-up in a non-intrusive, and caring way. I would say 95% don't do it (at all), and 4.99% only do it with the people that bought from them. If you take care of everybody you touch - whether they buy from you, or not - and are a kind and polite person; you can plan on a career centered around repeat and referral business in a few short years. Trust me, I did it the wrong way for 7 years - and turned things in a new direction 3 years ago: This is the best advice I can share with you.
Awesome topic brother Fran! And so many quality answers from the best of the best, I love it. I agee with it starts from the top and many are quality people but just need training as well as a brand new sales person - Green and Growing is the way... B.C.
Tobias Sedillos said:
The sales people don't have the proper systems in place to do long term follow-up in a non-intrusive, and caring way. I would say 95% don't do it (at all), and 4.99% only do it with the people that bought from them. If you take care of everybody you touch - whether they buy from you, or not - and are a kind and polite person; you can plan on a career centered around repeat and referral business in a few short years. Trust me, I did it the wrong way for 7 years - and turned things in a new direction 3 years ago: This is the best advice I can share with you.
It starts at the top. If a dealer has managers that just have meetings and no or little training the dealership is doomed or never reaches it's potential. Poor leadership, not following systems or no systems is common in dealerships that do poor. Accountability is a major problem as well. Dealers must let go what ever person or persons that can't do the job that effects others as well as the overall profit of the dealership. Training coupled with a will to learn will fix most problems. Thanks guys.
One perspective is that it starts at the top; but my philosophy is that it starts with "me". When it comes to putting a long-term follow up system in place, salespeople can't look to their managers; and here's why: If they had a solid book of business - or knew how to build one in time - they wouldn't have become managers: simply because it would have been a pay-cut, with an increase in headaches and decreased freedom.

Since this ties in with "the main reason is that dealerships fail" - I would have to add that it is "a failure for the individauls on their team taking personal responsibility for their success - resulting in their failure." Think about it: Successful people take responsibilty for their actions and succeed - regardless of their environment; and people that fail, blame "everything else" (all they have to work with) for their failure... no matter what path you choose - the cycle continues.

Salespeople can't blame the dealership, and the dealership can't blame the salespeople; they must BOTH take responsibility for their own action steps towards success.


My best to all,

Tobias.
Fran Taylor said:
It starts at the top. If a dealer has managers that just have meetings and no or little training the dealership is doomed or never reaches it's potential. Poor leadership, not following systems or no systems is common in dealerships that do poor. Accountability is a major problem as well. Dealers must let go what ever person or persons that can't do the job that effects others as well as the overall profit of the dealership. Training coupled with a will to learn will fix most problems. Thanks guys.

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