Total Unit Sales Vs. Closing Ratios

Too many times we hear of the "Horse" on the Salesforce selling 20-30 units per mo. Should Dealerships look more towards the Closing Ratios or Total Sales to Evaluate a Salesperson?

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Permalink Reply by Dugan Anderson on October 4, 2010 at 11:06am

Dennis mentioned give me 3-4 of these high powered guys and all would be good. George Steinbrenner hired a team full of SUPER STARS on year and the Yankees imploded. The ugly truth is that about one third of your staff wants to be there, loves the job and will do well at it. The middle third can't make up their minds whether this is the profession for them. They have the ability, but don't always put forth the maximum effort they are capable of. The bottom third usually is just looking for their next opportunity. They took the job because it was all they could find or tried it and didn't like it. Most of a dealerships turnover happens in the bottom third of the sales staff.

Regardless of where you fall, a WELL RUN DEALERSHIP will track their opportunities and their closing percentages, ALL of them, work with those sales people who need help and train them to do better. This should happen for ALL sales people, regardless of their monthly sales rates.

Lastly, I have found the GOOD salespeople are always the MOST receptive to training and making themselves better.

Permalink Reply by Glenn Wilkins on October 4, 2010 at 1:38pm

Great Comments from True Car People here...I cant help but realize that the word "Training" keeps popping up. I have to agree its a Critical issue !!

Permalink Reply by Craig Lockerd on October 4, 2010 at 1:53pm

Well this really is a good discussion and I think answers will depend on who is asking the question and for what reason.
I sold in the 70's and delivered a shade over 2200 vehicles over 6 years. Took me over 10,000 people to get to that number...not a Hall of Fame closing % ...but most of my pay plans were directed toward volume and aged units! I also was told my a manager once that "Volume will get you gross'...sell enough you are just going to "bump into" some big deals.
About 35% of those 10,000 were prospected ups and referrals as well,and about 2500 of 10,000 were at that time not able to be financed.
Now if I'm running a store and have a VERY accurate count on my traffic I want a higher closing % than that so I know what to do in regard to advertising budgets, training etc.
Out of the other side of my mouth I want to sell cars like candy bars...lol....volume gets more back end, volume gets more service work,volume gets more trades...NOTHING happens untill a bunch of cars start busting bugs!
...at the end of the day I know this....when the mortgage company comes for their bill they could care less what your closing % is but they sure are interested in how much you made!

Permalink Reply by Paul Hardy on October 4, 2010 at 2:22pm

I know for me when I 1st entered the car biz I only cared about how many I sold. I was in a big dealership that did 600+ per month. If someone did not want to buy soooooo what. NEXT! Then I moved to a smaller import store where we did not have the same amount of volume. Then closing ratio became important since I had less oppurtunity. Thats why some dealers have an "Up System" So you stay with your people longer. And treat each person as if they will be your last. As of now I still put an importance on the close ratio.

Permalink Reply by Craig Lockerd on October 4, 2010 at 2:34pm

...listen to this, you guys know Kyle my youngest son,he got a job at a Ford Store in Ohio...up system...10 guys,he is 10th...goes by senority?????....so if you suck but have been there 5 years you get the 3rd up everyday....is it me or is that crazy???
Paul Hardy said:

I know for me when I 1st entered the car biz I only cared about how many I sold. I was in a big dealership that did 600+ per month. If someone did not want to buy soooooo what. NEXT! Then I moved to a smaller import store where we did not have the same amount of volume. Then closing ratio became important since I had less oppurtunity. Thats why some dealers have an "Up System" So you stay with your people longer. And treat each person as if they will be your last. As of now I still put an importance on the close ratio.

Permalink Reply by Glenn Wilkins on October 4, 2010 at 2:53pm

Wow....That sounds more like a Batting Rotation than an Up Rotation. I dont understand that concept at all.

Permalink Reply by NANCY SIMMONS on October 4, 2010 at 3:08pm

And then this whole converstions revolves into...How do we handle follow up on the opportunities not sold... I am a firm believer that perhaps the prospect did not connect with the salesperson and a 3rd party omnicient person should be making the follow up calls with non-buyers. When I was working as the assistant F&I, I made all these calls. As a woman, with a compassionate interest in why they did not buy from us, I would usually get the truth...and more often than not, it was not price at all, but the prosepective client did not forge a trusted relationship with that particular sales consultant or floor closer. The house wins at the end, and sometimes a valuable lesson is taught!

Permalink Reply by Glenn Wilkins on October 4, 2010 at 3:25pm

Yes Nancy.....The typical case of Slamming a non closed customer into F&I. By focusing on sales techniques and not short cutting will not only raise our closing ratio, but give Finance the opportunity to sell product instead of trying to save a deal.

Permalink Reply by Craig Lockerd on October 4, 2010 at 3:36pm

Amen
Glenn Wilkins said:

Yes Nancy.....The typical case of Slamming a non closed customer into F&I. By focusing on sales techniques and not short cutting will not only raise our closing ratio, but give Finance the opportunity to sell product instead of trying to save a deal.

Permalink Reply by MANNY LUNA on October 4, 2010 at 4:00pm

This workbook will track your ups , sales, Closing% and will help you with monthly goals,yearly goals!
It needs to be checked by the Mgr every week!

MANNY LUNA said: