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.
As we all know, the profit of a motor dealership comes from several areas and each of them needs to be monitored closely if you want to ensure that your dealership performs well.
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
Advertisement
Advertisement
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
As we all know, the profit of a motor dealership comes from several areas and each of them needs to be monitored closely if you want to ensure that your dealership performs well.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
One of the latest Chinese automotive brands to establish itself in South Africa, GAC Motor, is benefitting from the expertise of well-known motor groups in the country, like the BB Motor Group.
