As we sit in Q-1 of 2024, it’s become very clear that the landscape in our industry has drastically changed and changed quickly! In 2023, we witnessed inflation, interest rates topping a 20-year high and global conflicts, which add up to economic uncertainty for the consumer. We watched as our front gross eroded, expenses increased, the used car market dropped and inventory was swiftly on the way. All this on the heels of the best, and may I say, easiest three years in the history of the automotive business. Everyone made a lot of money with little effort. During a recent conversation with a Baton Rouge dealer, he shared words that are indicative of where we stand: “Our guys got sloppy. We forgot how to sell; it was too easy, and now we are in a pinch.” We are back to the grind that we know as the car business! So, what should we do?
Bringing Back the Fundamentals
Dealers are looking to get tight processes and consistency back in their showrooms. Early management intervention, qualifying conversations, quality walkarounds/demos, proper turns to the F&I department and consistent sales meetings are some of the fundamentals that many sales teams have moved away from. As a result, we have continued to diversify our training offerings here at LDS, making sales and sales management training a top priority this year! Not only are our territory managers doing more in-dealership sales training than ever before, but we are also devoting every Wednesday to Sales Management Training on our LDS Virtual Coaching Platform! As you may know, in April 2020, as a response to the COVID-19 pandemic, we started virtual training via Zoom. We continue to have 100+ attendees for the daily 15-minute sessions. Although this has been primarily F&I focused, we are now doing a weekly session on topics such as holding productive sales meetings, the dos and don’ts of effective sales training, hiring winners and other sales-related topics.
New Product Offerings
Speaking of lower front grosses, dealers have been asking us for more products to bridge the gap! Some of our newer products include Ceramic Safe-Shield Protection, Windshield Protection, Short Term Dealer Certified Programs, GPS Location Services, and our latest addition, Precision Protect! Some of these products are offered in the traditional fashion in the F&I office, while others, such as Ceramic Protection and GPS, are primarily presented and sold by the salesperson up front. Consumers are seeing value in these products, leading to high penetrations and increased profit margins for the dealers utilizing these tools.
Those of us who have been at this for a while know when our business takes a turn, it’s time to make changes. At LDS, we are evolving to ensure we are prepared to offer the best resources to our Louisiana dealers! Please contact your LDS territory manager or myself for assistance. We would love to help!
