Know How Can One Survive The Current Economic Crisis If You Are A Automotive Dealer
For most dealerships, times are tough. The leads have slowed down, the obstacles of financing ought to qualify as an Olympic sport and advertising just doesnt work like it used to.
And the fact is that a lot of dealers are going under. Theres going to be a lot of casualties after this one.your store included.
OR perhaps not.
This present financial crisis may actually be your greatest blessing as a small business owner.
Sounds crazy, but heres the deal.
Many dealers are going out of business. No doubt. Its already happening. Your job is to be sure its someone elses business going beneath not yours. And there are terribly real ways to do this, if youre really serious about being among the 20% of dealers who can outlive the storm.
Im going to give you some cold, hard statistics and methods to assist you in just a moment, however let me start by saying that if you dont have the right systems or processes in place, work them out now. If you have personality conflicts, deal with them today. If you dont have a system for staying in touch with past customers and unconverted leads, get one.
If you dont have a crystal clear answer to the question, Why should somebody choose me over other dealers? figure it out this weekend. If you dont have a predictable way to get new customers into the door, at will, now is the time to do something about it. If you have floor plan issues or problems with your lenders, it's better to sort it out this month than next.
Why?
It all comes back to the eternal 80/20 rule, also known as the Pareto Principle.
If youre not familiar with the Pareto Principle, this rule dictates that 20% of dealerships easily get 80% of the business. In other words, the 20% of dealers who can outlive this current economic storm will do so because they make Sixteen times as much as those in the 80%.
And because of this capability to earn additional capital, when the market does come back (which it invariably will), theyll be larger and better than ever, readily positioned to eat up new shares of the auto market.
That may mean more dealers go out of business again-but it wont affect you if youre among the 20%.
So what can you do to ensure your dealership quickly and easily ends up among the 20% if youre already in, or teetering towards the 80% class?
Well heres what dealers in the 20% group do, and what youll need to try to to if you plan to survive:
1. Theyre sharpening their axe to make sure the dealership runs smoothly
2. Theyre going through further lengths to make sure the staff is well skilled
3. Theyre getting a hard hold on the marketing engine that will drive their business over the following few years
And most importantly, they wont panic or talk themselves into defeat. They know individuals will still purchase cars. Just not as many. They also know theres going to be less deals to go around and that theyll do what it takes to secure that business.
Now, what happens if things get real bad, and unemployment rises to 15% or a lot more? Well if youre in the 80%, you will be forced to lay off and you wont have the required sustain employees to run your store.
BUT, if youre in the 20%, 15% unemployment rates mean youll have the choose of the litter of who you would like to work at your store. It means that youll have the cash to fire your deadbeats and riff-raff and be able to replace them with skilled, professional, hard working people immediately.
Therefore high unemployment rates will be a good thingif youre in the right group.
The 20% group will see these hard times as an chance.
Clever people (those in the 20%) know that now, and also the months ahead are prime time to invest in stock, real estate, human capital, marketing, inventory --- and theyll be the ones who really rake it in when the market comes back.
Therefore where will you fall as it relates to the 80/20 rule?
Heres something else that we know for sure
1. 80% of the people reading this will create only 20% of the results they have to achieve success (harsh, but true)
2. However 20% of the dealers reading will create 80% or more of the results they have to make itand make it huge!
A small percentage of the dealers reading this right now are ready to make tremendous progresses in the coming months, whereas the rest are destined to patchiness.
Now here's where things get really serious. The 80/20 rule repeats itself, infinitely. Which means the top 20% splits itself into 80/20. Therefore theres the top 4%.
Then it happens again. 20% of the top 20% of the top 20% -- the top 0.8%. Thats where you really want to be. If we didnt already challenge you enough to be in the top twentyif you REALLY want to come out ahead, try to become a top 0.8% person.
Let's take a closer look at the .8% person:
Each decision is carefully made by a 0.8% person because its way more important than a call made by an 80% person.
A 0.8% person is aware of how to focus and narrow their labors on those things that are truly important. Although he may have a list of 43 things to do, hell hone in on the three or four that are more important than all the others combined. However the 80% folks treat all things like theyre the identical, or worse, work on the forty less crucial tasks before they tackle the 3 or 4 that basically matter! They have no sense of priority and hence they busy work themselves out of existence.
The 0.8% person carefully discriminates what info he can allow into his mindwhat he reads, listens to, or watches on TV who he surrounds himself with. The 80% folks are open minded and broadminded to just about any person or any idea.
The 0.8% people belongs to some kind of mastermind or good ol boys club. This is often the type of group that can support, hold up, and go the extra mile for its members. And most of the 0.8% individuals pay BIG money to be in these clubs! Nevertheless again, unlike the 80% who would see it as a waste, they understand the worth and that some of the most brilliant men of all time, (i.e. Carnegie, Henry Ford, Ben Franklin) all participated in the same.
The 0.8% person is perfectly immune to disapproval from othersdoesnt care what most folks think is not affected by pessimism on the news, from neighbors or family members. He realizes that the mass of people is nearly always pathetically wrong. The 80% peoplewell, theyre the masses.
So, friend, whats it gonna be for you? 80%, 20%, 4%, 0.8%? Your actions now will ultimately determine your fate of your future. So pick the winning team and start down the road to success-even in these tough economic times!
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