Management Basics: Delegation

When I think back to delegation, one thing that always comes to mind were the dreaded group projects in school. You know the ones I’m talking about. The one where it was a group grade, but only one person really did the work. They were the worst.

One specific group project that comes to my mind was in a high school history class. In this class, we were supposed to create a video depicting a historical event. We needed to have costumes, everyone needed to have lines, and present the information in a way that the rest of the class could …Read More

How to Find New Managers

“Help, I need a manager!” This is a conversation we have consistently with dealers. Finding someone to come along side you to help run and manage your dealership is a big deal. It’s not a step that should be taken lightly. The right person for this position has to be a someone that not only you trust and get along with, but that your people will respect as well. One of the most common mistakes we see are dealerships who get to the point of needing a service manager, which typically happen when you have three technicians who are 85% …Read More

Looking For Sales Help?

When you think of the word ‘salesperson’, what comes to mind? For most people, it’s words like slick, slimy, greasy, con-artist, or snake.   I think most dealers agree that these aren’t words they want to hear when others describe their salespeople. So, how do you find salespeople for your dealership who aren’t slick, slimy or greasy?
As you think about hiring for your sales area, it’s important to understand that you need different sales roles require different types of people. I know some dealerships have salespeople working at the parts counter, some have dedicated inside salespeople and some have dedicated outside …Read More

Where to Find Parts People

Not just anyone can be picked off up the street and be placed at the parts counter. There is a mix of customer service, technical knowledge, sales ability, and attention to detail required to be an excellent parts person. So, when you are in need of the mystical parts person, how and where do you find them? With season upon us, there never seems like there are enough to go around.
We often talk about how, as we are looking for good employees, we need to hire low and grow. The same holds true for a parts counter sales person. As …Read More

Where to Find New Technicians

If I were to pick the one question that people ask me the most, it would be this: “How do I find good technicians?”

It’s no secret that it is a challenge to find qualified technicians. Programs are created to train up technicians, but it seems like there are none available when you need them which, most of the time, was yesterday. So, how to do we find good technicians today?

Hire Low and Grow:

One of the fundamentals to finding any good employee is to hire low and grow. By this we mean that we encourage dealers to find a person that …Read More

Why New Sales People Fail

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

How to Compensate Your Salespeople

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

What is the Difference Between MSRP and Retail?

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

The Nuts and Bolts of Technician Pay

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

How Do I Determine My Labor Rate?

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