What is the real cost of training? What is the real expense?

What’s the real cost of training? What’s the real expense?


If you’re like most answering this question, the answer that rolled off your tongue instantaneously was “nothing” then you supported that answer with a statement along the lines of “we pay managers a salary, and they handle it.”

Stop for a second and think about the above statement; while it’s true, they receive a salary, how many managers, when asked to write out their job description, include “training” on their list of their duties? How many are qualified? The reason why most, if not all, wouldn’t write it down is because they’re not training. Sure, some may take things they find from online forums, blogs or by Googling “free training” and hand them out like a substitute teacher back in school passing out busy work, but is that really training?

Training, to me, is defined as teaching, coaching, getting someone better at a skill set. Not just “telling” them “GET CONTACT INFO” but actually showing someone how to do it and working with them to learn how to do it situationally and ongoing in a supportive manner.

Ask yourself this: is that same manager you tasked with “training” most effective A. calling yesterday’s unsold showroom traffic, B. on the sales floor engaging in negotiations and closes, C. taking early manager TO’s online or D. all of the above? The value of having them do what they’re great at far outweighs the “savings” of not paying for proper training and thus should be their focus. Just because you’re good at something doesn’t mean you’re an effective teacher on the same subject matter. When looking from the outside in, all dealerships are trying to do the right thing, but keeping expenses in line at what cost? Hence the title, what’s the real cost of training? Having someone not qualified whatsoever “train” to save $1,500 a month is potentially costing tens of thousands of dollars each month in opportunity profit and, of course, net deal profit.

If you made it this far and don’t agree or don’t have an answer, I’ll leave you with this thought:

Whether you’re a Basketball fan or not, most everyone knows LeBron James, who is arguably one of the greatest basketball players of all-time. So why do the Lakers hire an entire staff of coaches and trainers? Why spend (invest) all that money? Why not just have LeBron “train the team?” He’s on a salary, right?

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Comment by Chris Vitale on September 21, 2020 at 2:26pm

Love it, couldn't agree more! 

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