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Tuesday, April 17, 2012

Sales Performance - Sharpening the Saw -

Sales Performance - Sharpening the Saw -

Joe Clementi writes: "Top quartile dealers have roughly 54% turnover of their sales force, whereas the bottom quartile dealers have 71% turnover. Top quartile dealers have a higher level of employee involvement in improvement activities – of the top 10% of dealers surveyed, 70% agreed that employees proactively engage in process improvement activities within the dealership.  The theory is that some of the realities of the business drive dealers and their employees in a vicious cycle.  The hours are long and the pay is relatively small. Although a talented salesperson can make out well, the average annual income is about $30,000. Since 50-hour work weeks are the norm, the average salesperson makes about $11.00 per hour.  Stress is common, and not just the stress of rejection. Sure, a retail salesperson is about ten times more likely to hear no than yes, but that’s standard for most high ticket items. From the stress comes confrontation. The guest doesn’t like or trust salespeople, and sometimes neither do the manager.
Income is cyclical. Unpredictable compensation discourages stable, family-oriented people.  The pressure to perform creates tension which in turn creates high pressure sales tactics that most managers want their people to avoid. Since the salesperson receives mixed messages it creates uncertainty. Uncertainty results in the salesperson’s inconsistency. The result is a vicious circle.  Individual performance is the responsibility of everyone associated with the sales department. Salespeople and their managers need to take action to improve skills, reduce turnover and proactively engage in process improvement. Responsibility to sharpen skills and strengthen knowledge resides with anyone associated with selling automobiles..."  Use the link provided to read this entire article from Joe Clementi, it is well worth the time for automotive sales management professionals.

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