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31
March
2025
How WE Handled Sales in BHPH
Uncover the secrets to automotive sales success in this insider's guide. Explore effective strategies that propelled performance across multiple states, including unique commission structures, thorough application processing, and the power of personal referrals. Learn how to motivate sales teams, maximize customer interactions, and consistently achieve sales goals while maintaining integrity in every deal.
Over the last three decades I have had probably 50-60 salespeople, multiple managers and trained dozens more. In different cities and states we were able to be consistent with the metrics using a process that had been boiled down through multiple managers and collection teams. What we found was having the sales team sell, the desk control approvals and collections verify then collect, we were able to push out the numbers we projected at each location.
How did we do this and have success? First, the sales team were paid commission. They did receive $8 an hour (hours or commission, not both) at first then we moved that to $10 per hour after the “turn of the century”. If a salesperson is comfortable at $10 per hour, we didn’t need them. We also paid them 10% of all the down money they got from a customer. Not just upfront cash but also deferred downs they could negotiate and any net from trade ins. Another part of the pay was 2 or 3% of the upfront gross. No, the salespeople could not negotiate price on the deals, but they would handle sales that the desk would approve with little or no down payments, so they could still make some money.
We monitored all applications that were taken and compared that to the traffic we counted. The salespeople were told how many applications they needed each month to meet their goals (and ours) for sales. If we approved 35% of the applications and a person wanted 20 sales, they needed at least 60 applications. If the salespeople averaged 60-70% of the ups they made contact with getting to the application, then they needed to shake hands with about 100-120 people. For a deal to get done the salespeople knew they needed a completed application and the stipulations we required. If the customer could not provide the basic stipulations, then the salespeople knew what was acceptable for backup documentation. Conversely, the salespeople knew what absolutely wouldn’t work. I want the salespeople to say “yes” to any option the customer offered until the desk could find a way to make an approval if possible. We explained to the salespeople, if we aren’t ready to sign them, don’t be talking specific down payment, don’t give any payments or terms and do not make promises you cannot keep. Tell everyone to come in, do not qualify before they are here, we work miracles and are here to sell cars.
The desk or Sales Managers were responsible for putting good deals on the books. I always paid them good money for the market. Each store had two or three managers for coverage when busy and days off. Their job ranged from making sure we always had enough cars out front to sell and the sales team knew what vehicles they could sell. The managers would field all the applications from the salespeople and guide the deals from that point. I wanted the salespeople to expect every deal could get done and work the managers. I wanted the managers to understand that as well but not let bad deals or hinky deals get through. Bad being a deal with wrong stips, false information, too much payment or documents we would not accept, or not really living around the area.
The deals were audited for missing items (there was a checklist) and not following the guidelines. The managers would review the deferred downs from the salespeople to make sure the payments made sense with the cash flow and other payments of the loan. Again, like the salespeople, there were procedures and policies that needed to be followed. No deal rolled without verification, had the income we needed and the correct paperwork. If very many deals got through the process and were wrong or there were too many defaults early we knew it was the person approving. All deals were closed by the managers so they could ask questions while closing and later be able to have that discussion before a default “you told me you could do this”.
Our salespeople knew they were responsible for bringing in their own business (managers as well). The dealership had marketing and a good website that brought us applications online and walk up traffic. We had a nice facility and inventory out front that also brought us traffic. We had a good referral program and we told the sales team to go out and sell our referral program to other car salespeople, good customers and anyone they knew that had contact with the public. This was a big part of our sales. We would get referrals from the car lots around us every day. New car stores, independent used and even other BHPH (ones that required big down payments, their salespeople would send us customers that didn’t have the cash).
30% of our sales came from the personal Facebook pages of the salespeople and other employees. Everyone posted a car for sale every week with no reference to the dealership. The salespeople would get those leads or have the customers walk in. If the salesperson was doing his job right the other employees knew who they wanted to handle their customers (family, friends and acquaintances).
Combine all the above with some small radio contracts. We would use the little local owned stations only and that helped with all the other marketing. We also worked all small balance accounts and the salespeople had to keep a follow up list for existing customers and applications that were needing to be followed, you know buy or die. No, we didn’t have a CRM.
We always had at least one salesperson making $100K a year at each store and others that wouldn’t last long. We would not pay more than two “hours only” checks to salespeople. Obviously with the success of the other salespeople we knew the one failing wasn’t right for the job.
Our salespeople never collected on accounts (unless it was a friend or family of theirs). They did move cars on the lot, test drive for quality control as cars were reconditioned and occasionally some of the salespeople that wanted to learn would help manage when needed. I wanted the salespeople out getting bird dogs, taking incoming calls, calling previous applications, and leads. COVID definitely has changed these practices but those people that thrived in that commissioned role are still out there. Pay a guarantee for 30 days then maintain that guarantee for another 30 but show the salesperson the commission as well (give them the option to receive the commission pay) let them know the following 30 days will be on the commission pay plan. They either sink or swim!!
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Gene Daughtry
I do on site training for Auto Master Systems. I provide consulting for BHPH and LHPH operations. I provide Service Operations training. I do procedure writing for Independent Auto Dealerships.
