The MHEDA Journal - Second Quarter, 2012 - (Page 37)

PL ANNING FOR PROFIT MONEY MATTERS The Link between Sales and Absorption: To sell more, service more! BY ROBERT CURRIE AND MATTHEW HICKS, CURRIE MANAGEMENT CONSULTANTS, INC. Characteristics of High Performing Dealerships: “Strong Processes and Selling Service” Dealer Performance High Performance Dealership Characteristics • • • • • • • Strong Sales Management Coaching & Training Clear Sales and Profit Expectations Regular Sales Meetings Annual Sales Planning and Budget Specific Assigned Accounts Focused on Product Support Volume & Quality • Balanced Sales Mix, including Parts, Service and Rental Departments • Strategically Approach the Total Account not Segmented Departmental Selling • Traditional Sales Coverage Approach • Mediocre Expectations • Inconsistent Sales Meetings • Some good sales people, but also regularly tolerating poor performers • General Assigned Territories • Driven by the loudest salespeople’s complaints • Experiencing Silo Management in the Dealership •· • • • • Little to No Management No Training Program No Expectations or Benchmarks Large Assigned Territories Belief that compensation program will motivate sales people • Approach of Service is a Necessary Evil in the Dealership • Almost No Career Path for Employees 37 E very dealer wants — or needs — to sell more. Whether from the manufacturer’s need or your need for more revenue, dealers continue to look for ways to sell more. A good place to start selling more machines is to look first at your parts and service departments. There is a strong link between sales coverage and better parts and service profitability — meaning better absorption. This article shows why. From our work with dealers over the last 35 years we have examined why some dealers are achieving their revenue growth and market share targets while others are not and who often complain that they are spending too much on their sales effort for the results they achieve. The short answer for the difference is that the better dealers have more sales people, and more management of them, than the average to poor performing dealer. But there is a reason why they have more sales people which we’ve found by knowing the characteristics of dealers at various levels of performance. Average Performance Low Performer The MHEDA Journal | Second Quar ter 2 012

Table of Contents for the Digital Edition of The MHEDA Journal - Second Quarter, 2012

President's Perspective
From the Desk of Liz Richards
Ask Your Board
Meet The MBOA
Mackinnon Equipment & Services
Member Profile
Bode Equipment Company's Office Supervisor Meredith Fowler is a jack of all trades
Customer Service Automation
Continued Growth Expected in 2012
The Off-Season
Convention Program - Re-Imagine Your Business
Convention Program
Exhibitor's Showcase Guide
Out of the Classroom, Into the Shop
The Link between Sales and Absorption: To sell more, service more!
Social Media and the C-Level: Objections Discussed
Sucession Planning and the Emerging Generations: Five Trends You Need to Know
Sucession Planning
Sucession Planning and the Emerging Generations: Five Trends You Need to Know
Work-Life Balance: It's All Up To You !
Controlling Your Workers Compensation Costs
Transactional vs. Consultative Selling
The Traits of Great Salespeople
Who's to Say What Is Sexy
Spotlight on MHEDA News
MHEDA University Calendar
New Members
MHEDA Milestones
New Products
Index of Advertisers by Product Category

The MHEDA Journal - Second Quarter, 2012