When working with dealerships, I’m often asked, “How can I help my new salesperson succeed – right from the start?” Most salespeople, especially new ones, fail for one reason; they don’t produce enough daily activity to get their business up and going. This is why I encourage owners and sales managers to make sure that the salesperson is starting out with a sales funnel that is full of customers to contact. Whether your salespeople are new or experienced, nothing can create sales success more than a full sales funnel. If I were starting a new salesperson, I would go into …Read More
Compensation, regardless of the position in a dealership, is always a hot topic. How much can I afford to pay? What level of performance do I have the right to expect as an owner from my people? How do I know whether I am paying too much, or just as bad, not enough, and then risk losing my good people to a competitor? While I could do a day-long program on compensation programs for dealerships, in this blog I want to just focus on the sales department for both inside and outside sales people.
Let’s start with those people you have …Read More
MSRP and Retail Pricing may not be the same thing. One of the most common questions I am asked from new dealers, just getting into the business, has to do with MSRP (Manufacturers Suggested Retail Price) and why we would encourage dealers to charge more to the customer that what the manufacturers recommend. As I share with dealers, the Manufacturers Suggested Retail Price, is just that, a suggestion. It doesn’t mean that you must sell at that price. As an independent dealer you have the right to choose whether you use the recommendation from the manufacturer or not. Because of …Read More
In the compensation programs we recommend, the tech is paid an hourly rate based on their level of experience and the dealership location. For example, in the Midwest, a C-level tech might make $8-$10 dollars an hour. A tech in the Boston area, however, might need to be paid $14-$16 per hour. You know your area and what you have to pay to get a technician at the various levels, so adjust accordingly.
In the Midwest, a B-level tech makes $10-14 dollars an hour while an A-level tech makes $15-$21 dollars an hour. A tech’s hourly rate should be increased based …Read More
One of the most common questions we are asked at BCI is "How do I determine my labor rate?" For most dealerships, the process of setting a labor rate begins with calling all the competitors in the market, asking them what their labor rate is and then making sure that they are somewhere close to the competitors. In our company, we jokingly refer to this method as “pooling ignorance”. Why, you might ask, is this not a good method? Well most of your competitors do the same thing to set their labor rate and ultimately it has nothing to do …Read More
One way to generate new customers and while maintaining your current customers is through a Loyalty Program at your dealership. Think about how many stores have a “shopper card” or a “preferred customer” program. These stores are marking up prices on items to be able to give discounts on other items. We all understand that, but it makes the customers feel like they are getting a perk for doing business at the store.
We encourage you to create a similar program for your dealership. While a customer loyalty program may not be right for every dealer, it is a program that …Read More
The market is competitive and every customer is important. So, how are we supposed to standout and capture all the business we can? Well, we know that several things can help with this but the most important is setting yourself apart and you do that by "wowing" the customer through excellent customer service.
Did you know that 78% of consumers have bailed on a transaction because of a poor service experience? That means that almost 80% of all consumers will refuse to make a purchase due to not being “wowed” in your business. Let that sink in. Setting yourself apart from your …Read More
We were recently asked, "Who is responsible for determining the labor charge on each work order?"
Before we can decide on the amount of labor that can be added to the work order, we need the technician to diagnose or triage the piece of equipment. (Need Triage Sheets? Check out BCI's Dealer Toolbox)
If they are triaging the equipment, they will estimate the time needed to complete the repair on the triage form. If they are doing a full diagnostic, they will estimate the time needed based upon previous repair experience. That work order and diagnostic sheet will then go to the …Read More
We were recently asked- “We often hear of the importance of Flat Rating in our dealership. Why should we do this, and how do we get this info to start? How does this change with different conditions of equipment brought in?”
So, why should we use Flat or Standard Labor Rates (SLR)? It’s good for both you and your customer. From the customers perspective, it gives them the ability to know what the charge for the work is going to be regardless of the technician’s skill level. If they have an “B” or “C” tech working on their machine, the billable hours …Read More
What is the Cure for the Common Employee Headache?
Two Aspirin OR an Employee Handbook!
Do you have an employee handbook? When was the last time it was updated or given to employees? I know it is a bit time-consuming, but trust us, it is well worth your time and effort.
An employee handbook will not make you more money, but it will eliminate a lot of headaches. Most small business owners dislike dealing with employee issues. A handbook helps.
Why a Handbook is Helpful
An Employee Handbook Speaks for You. An employee handbook answers questions about things such as time off, dress codes, …Read More