“It’s just a chunk of ice.”

I’m sure that’s what the captain of the Titanic thought. In all seriousness though, they were given seven different warnings before their impending collision.

So, with that being said, who’s truly steering the ship that is the dealership? Well, in a perfect world, the dealer principal would happily take credit for that. But in a lot of instances, that’s not necessarily the case.

If we look at this from, let’s say, 100 feet rather than the typical 10,000-foot format, it may surprise you. Realistically, I can state with confidence that most dealerships’ profits and losses aren’t impacted as much by something a Dealer Principal may do or say, but rather by the everyday decisions the mid-level managers make from the tower on a daily basis.

I mean, if we really think about it, these managers are the ones bidding trade-ins, ordering vehicles, buying inventory from auctions, penciling car deals, training their sales team (hopefully), and taking TOs to help close deals, just to name a few things. Failure to do a great job day in and day out on any of these responsibilities could lead to potential problems for the store and the bottom line overall.

I understand that there are many other factors that could contribute to this, but relatively speaking, on the variable side, I believe it starts here.

Let’s take something as simple as bidding the trade, for starters. Take a look at your numbers and it’s usually pretty easy to see that we tend to put more money on trades near the end of the month. Why? I mean, I understand that we need to “finish strong” and all, but why not “finish strong” every day, and not just at the end of the month?

This can sometimes be “selling scared” to hit specific numbers, but instituting something as simple as an EMI (early management intervention) can help us avoid having to bump bids to save deals. It’s as simple as a manager going out to greet the customer when they first sit down with the salesperson.

It takes away the “manager behind the curtain” fear and lets them see and feel that we are there to help them and not sell them. Anytime we can show transparency with a customer, it’s a benefit, plain and simple.

Another potential “iceberg” on the horizon is the lack of participation from managers when it comes to TOs. Now this could be a real issue if not corrected immediately. When the managers don’t come down from the tower to help, it’s usually one of three reasons:

  1. Frustration

“I’m tired of always having to close John’s deals,” or “If I’m going to have to close all John’s deals, we should just let him go.”

Well, my first question would be, why? Why are you having to do this? Are you working with John to help him be a better closer? If John’s always going to be a “seven-car guy,” then you can’t be a seven-car manager when helping him.

  1. Exposure

They can’t close. They’ve told everyone in the state who would listen — as well as the store, how “great” they are at closing, yet like Bigfoot, no one has ever witnessed it. These “managers” are typically always “too busy” to take a TO, so they tend to ask someone else to do it.

Listen, if you want to be a great leader and not just a “manager,” take the TO every time. I would always let the salesperson know they did a great job, and say, “I’m not sure I’ll be able to do any better, but let me go out there with you and see what we can do.”

Listen, if we go out and fail, it shows the salesperson you took a bullet for them, and in return, they will take many more for you. You’re a leader, not the Messiah. Show them you care enough to help them, and you’ll get more from them. It’s about the team, not ego.

  1. Let-’em-go philosophy

This one could be far more problematic than the first two. For starters, it’s not “our” money we’re making these decisions with, it’s the dealer’s. I’d bet it’s fair to assume these dealers have paid between $250 and $500, on average, to get them to your store.

We’ve all had our fill of ridiculous customers wanting $20,000 off new vehicles, or “knowing what they got” when asking $9,000 more on their trade, but go out there and make a difference. Listen to the customer, most times, that’s all they want: to be heard.

I’ve never had an issue giving those managers “control” of their departments as long as I knew I had to “inspect what I expect” from them, knowing we were ALL rowing the boat in the same direction.

Improving those overall sales numbers doesn’t come from a manager “managing” (they’re already a manager, just ask them), but rather by leading the “teaching, not preaching” philosophy with the team.

By building a strong culture first and showing (not just telling) the team that you’re involved in every deal, you’ll show the team that you can navigate any storm, each and every day, not just at the end of the month.

Rob Whistle is the national sales trainer for Automotive Reinsurance Concepts and can be reached at rob@arcdealers.com.