Someone Who Tells You During Your First Meeting That They Know What You Need!
This is where most manufacturers go wrong when looking for used car business development partners, they engage with people who tell them at the outset that a particular programme of used car training is the answer; well I’m sorry but this is complete nonsense and folly on behalf of all those involved. It is akin to you going to see your doctor, telling them you feel unwell, the doctor asking you no questions, carrying out no examination, but then writing you out a prescription and bidding you good day.
Quite rightly you would say that this is ridiculous; how do you know what medicine I require, you haven’t asked me any questions or examined me yet, but yet? And when it comes to building a successful used car programme for your franchised dealer network, (one that will be delivering successful individual used car businesses), it is impossible for anyone to know what you need at first meeting, or in fact, until they have a forensic understanding of your business and the immediate used car business development requirements of the businesses involved in any programme.
And let’s get another thing straight right now; sadly, you shouldn’t listen to anyone who listens to you telling them that you know what you need either; we don’t want to switch our target audience off right now, but if you knew what was required you would probably be implementing it yourself!
We have written used car business development plans for, and built hundreds of used car businesses over the years and we would never tell you at the first meeting that we know what you need, because we don’t; and this is what catches most providers of used car business development and training out. Invariably they lead with a single offering, a used car workshop or a new process of enquiry management and listen, this is not to say that they don’t have their place, just that they are flawed in their thinking, (as are you by the way), in thinking that this approach will be the answer!
We would love to tell you that the fix can be both quick and cheap, but it can’t; and it is not to say that we haven’t delivered used car workshops before, because we have, or that effective enquiry management systems aren’t important, because they are very important; but they are NOT the single answer to successful used car retailing. So if you asked us to deliver a used car workshop we would say yes we will, and not only that, it will be the best used car workshop you have ever seen. But will the attendees retain everything they have been told, know everything required to build a successful and growing used car business, then drive back to the dealership and deliver on that? Of course they won’t.
So we would qualify this for you and tell you just this; used car workshops are great at exploring the opportunity and opening minds to the rewards on offer; they are a great forum to deliver the benefits of successful used car retailing and to invite inquisitive minds to ask questions in a nonthreatening environment, but if you really think that you can teach someone enough to build a business delivering £500,000:00 net profit within 2 years and then planning for the £Million profit mark within 5 years, well that is for the birds.
When we are in discussions with potential clients we remind them all that used car retailing is a highly complex business, but one that is quickly summed in this saying;
“Investing a large amount of someone else’s money in a heavily depreciating asset class; then retailing it within a 60 day window of profit opportunity.”
So in many ways the professional you employ in this role is akin to the person in charge of the investments for your pension; continually investing money in assets that will make you money; and I’m sure you will agree that this is a highly skilled role? So with this in mind do you really think that the person running your pension investments went to just one pension investment workshop? Of course not!
And then there is the subject of learning environments and individual learning habits to account for; as Morgan McCall identified when he identified and developed the 70-20-10 learning principal, which is still identified as “The" learning benchmark and method, even today. Although we are all different and learn in different ways and at different speeds, (because we all have different levels of knowledge at inception), McCall identified that “a massive 70% of what we know is learned through hands-on experience, daily tasks and challenges. Just like children learn through play, most adults still learn best by doing.”
The “10” refers to the 10% of our learning which comes from formal or classroom learning; in other words training courses and the used car workshop which, as much as they are important, and formal learning is required to back up the experience and hands on learning, (70% of our learning), it is how we learn only 10% of what we know. So in essence you are relying on a training day or used car workshop to be the answer when it is proven that at best, it can only amount to 10% of anyone’s learning.
So we would ask that even if an organisation happens to hit on the core subject and focus for used car growth, (which they can’t), why would you work with an organisation who at the very most, can only deliver 10% of the learning that will be required? And this is before we get involved with who should be attending any used car workshops or training days, but that is for another article.
So why should you work with us? Well as we have said before we are not for everyone, but if you and your franchise partners want to make more profit from selling used cars, we should be the first people you should think about speaking to. Having spoken we may decide that we are not the right fit for you and this will never be a reflection on you or your business; we are the first to admit that a close business relationship must be built between yourself and any business consultants and mentors you employ.
Your success will be our success and therefore our complete marketing campaign for the future, so if we don’t feel the commitment will be there from either you or your franchise partners, or that the businesses of your franchise partners will ever be invested in, for used car success, why should we start a pivotal business relationship that is doomed to fail? And if we do work together we will start the process with a small but very important commitment; that of completing a forensic “Warts and All” audit of every used car operation included in any used car business development programme; which will audit every area of the businesses effecting used car profitability, especially the people.
No one can advise you on how to build any business without knowing the business concerned inside out, even people who have built countless successful used car businesses and developed the associated staff, as we have done, have to start with this process; why? Well because every business is different and therefore has a different growth journey to plan, so without this process we cannot work with you, or your franchise partners, because until this process is complete we won’t know what it is you or your franchise partners need!
Just like any other business, but especially one that is capable of securing the future of your new car trading model, growing a successful used car businesses will take the right people, the right training on a continual basis and an awful lot of hard work.
However it can be done; the owners of Autoformance have owned and run successful used car businesses and been at the forefront of the development of approved used car programmes for a host of manufacturers and their franchised dealer networks. Those looking to explore how we can help you and your franchise partners make more profit from selling used cars, need only contact Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com in the first instance, in order to arrange a no obligation exploratory discussion.
Alternatively please feel free to call me on 0044 7796 260261.
For more information about our services please visit our website at www.autoformance.com
We look forward to hearing from you.
Andrew Banning.
Used Car Business Development Director.
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