Resource Center - Industry Articles
Managing Fear
by Randy Johnson, Founder and President, Car People Marketing, January 17 2009
Every day, I talk to dealers, general managers, and service managers. It's what I do, and have done for years. In the past few months though, I have noticed a definite change in the subject matter. Normally, we would talk about how to improve their service business, increase traffic, improve owner loyalty, and how to add some more net profit to the bottom line. Now, the topics are the same, but the focus is on staying in business instead of improving. The conversation is laced with fear.
I understand the fear. Car sales are off at some stores. That's right, I said SOME, because I can introduce you to dealers who are having record months, and they're not all Honda and stores. I can also introduce you to a Toyota store that is losing $200,000 a month, and several domestic stores that are netting that much and more out of service alone. So don't say things are bad everywhere - they aren't.
Hear this: If you do things that make your employees think things are bad, you will make them worse. They can sense fear like a wild animal and as soon as you cut staff, cut advertising, cut normal facility services like janitorial services, they begin to live in fear along with you. They stop selling. The traffic stops coming. Things get worse and your most valuable assets, your employees, scare themselves right into another job.
The key is to remember that you need to run your service department like a sales department. If you want to sell cars you have to be positive. You have to keep everyone motivated. You have to pump up sales meetings and show them how to sell. You tell them that we have to get more aggressive, that you are going to spend more on advertising to increase traffic and that they need to be ready to work each opportunity and close every deal. You do that in your vehicle sales department - why not your service department?
Ask yourself: are you going to sell your way through this situation or are you going to roll over and die? And if you decide to die, just do it - don't drag it out.
Now, pick yourself up and go to work. Deal with the struggles of running a business as challenges. Look and think long term, not short term. Show your people you are the general that will win the war. Rally the troops, so to speak, and make sure they know they are on the right team - the winning team. Show them that you are involved in every aspect of your business, not just car sales. Show them you care how customers get treated in your service department - and have short, weekly, even daily, pep rallies with your service sales staff. It's time to get aggressive and convenient and competitive. It's time to stop waiting on customers to come in. It's time to give customers a reason to do business with you - and it is time to be smart and fearless - not fearful.
Randy Johnson is Founder and President of Car People Marketing. Contact Randy at 866.227.7337 www.CarPeopleMarketing.com
