How often do employers find themselves in a real predicament to fill a position in a dealership and out of sheer desperation have to choose a person who is the best applicant among many poor ones? Out of desperation, an employer will convince himself that he will “manage them closely” as he knows they are not ideal.
This happens more often than is readily acknowledged and often these types of appointments land up costing the dealership in many ways. The inefficiency of the person, the stress placed on management, staff morale all have a substantial cost factor.
Take the appointment of a person who is less than ideal in vehicle sales. The appointee may well develop and do well but if not, the opportunity cost of having the wrong person can be very substantial. Take the average GP (Gross Profit) per salesperson versus the “desperation” appointment and the difference is the real cost. They occupy an income-generating desk and there should be an expectation of what each desk on the floor is worth to the dealership. Any GP generated that is less than you require is the opportunity cost.
Let’s look at technicians. Based on a labour rate of R800 per hour and eight sales hours per day, a tech generates revenue of R134 400 per month. In most dealerships, there are techs who consistently sell for more than eight hours per day and then there are those who consistently sell for under eight hours per day. For the sake of this discussion, let’s assume that one tech sells nine hours, and another one sells seven hours per day. The difference in revenue between the two techs is roughly R27 000 per month or around R280 000 per annum – opportunity cost.
It is the number one responsibility of management – employ the right people and ensure that they perform at the level that they should under the circumstances. This in no way means that staff should be pushed excessively. It does, however, mean that underperformers should be actively managed to ensure that they turn into performers.
The used car group, Cubbi, has officially opened the doors of its new flagship megastore in Germiston, a site with more than 300 vehicles ranging from entry-level hatchbacks to premium SUVs.
After an absence if six years, Tata passenger vehicles are back with a bang in South Africa. The last model launched locally was the Bolt, which followed in the tracks of the more well-known Indica.
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I always do like seeing other people dance in their cars. It's one of the things that makes me happy.
Ariel Gore
The used car group, Cubbi, has officially opened the doors of its new flagship megastore in Germiston, a site with more than 300 vehicles ranging from entry-level hatchbacks to premium SUVs.
The grass is not always greener on the other side, and now I am back home in the Free State with my new family, the BB Group.
South Africa's premium automotive sector has experienced unprecedented consolidation over the last two years, with multiple luxury brands restructuring their dealership networks in response to declining sales, economic pressures, and shifting consumer preferences.
