Scrapping of VAT increase, widely welcomed
The National Treasury’s announcement on the scrapping of the proposed increase in Value-Added Tax (VAT) has been widely welcomed.
- Industry News
- 24 April 2025
Sales activity management is probably the most important job of any sales manager but there is very little information available with which to manage it.
I know some manufacturers and a few dealers that have taken this quite seriously, but I am not sure that companies pay their sales managers or reward dealers on the effective management of sales activity.
Sales enquiry volumes by vehicle.
Source of the enquiry (phone, walk in, promotion etc).
Number of potential trade-in vehicles.
Manage the workload of the sales team.
Determine what vehicles are being enquired about (efficiency of advertising, pricing, branding and positioning).
Determine what resources are required where (telephonists, floor salespeople, greeters, product specialists).
Which salespeople are proficient in dealing with clients face to face versus over the phone.
Which salespeople are more successful on which models.
Predict sales outcomes that will enable the sales manager to manage stock more effectively.
Determine which salespeople are better at negotiating a deal when there is a trade-in.
Once you have accurate activity data over a period of time, it will give you an incredible insight into which salespeople and processes are truly effective and where there is opportunity.
An example I use often is if salesperson A regularly receives 100 enquiries and sells 15 vehicles and salesperson B receives 20 enquiries and sells 10 vehicles, who is in fact your better salesperson?
You may want to find out why two salespeople have such a vast difference in enquiries – maybe one has a telephonist friend and receives more than their fair share of enquiries. Another possibility is that salesperson B may be happy with selling 10 vehicles and is not too keen to take on extra leads.
I could go on forever with possible scenarios, but the fact of the matter is that unless you have activity data that can be effectively used to manage sales, you cannot maximise the potential of the dealership.
In closing, I have personal experience in using the data described above and it made our business incredibly efficient and effective, as we know, efficiency and effectiveness always lead to improved results.
Take care.
Donald
The National Treasury’s announcement on the scrapping of the proposed increase in Value-Added Tax (VAT) has been widely welcomed.
A Cape Town vehicle repairer, who has had a consumer’s vehicle for almost two years and failed to complete repairs to the vehicle by an agreed date, has been fined R100 000 by the National Consumer Tribunal and ordered to refund the vehicle’s owner the R77 000 he paid for the repairs.
Widespread rains over large parts of South Africa recently led to rivers breaking their banks and, in some cases, flooding streets and homes. The volume of water has raised concerns among agricultural economists over possible damage to crops.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Inefficiency in a dealership is often not that obvious and that is why it is difficult to identify and address.
In the face of a shifting premium automotive market, Audi South Africa is also currently re-aligning its retail operations according to the new reality where the premium vehicle sector has contracted to nearly a third of its size compared to a decade ago, with 2024 marking the lowest level yet.
The commercial vehicle industry has seen a complete shift in the market over the past year. Despite challenging market conditions, Daimler Truck Southern Africa (DTSA), along with its dealers and general distributors, successfully navigated the landscape to deliver great results, it says.