What Have You Learned From The Downturn?
Posted on Dec 04, 2009 - 04:26 PM
The other day I was speaking with a dealer about how his business was doing - with all of the turmoil and new challenges we all face today. He told me that he was doing OK, not fantastic, but OK. Then he asked me about our business...how it was doing and I responded with the same response...OK, it's OK. I went on to tell him that the last year had been tough - with dealers going out of business and cutting back - but that we really focused and made some hard decisions and did what we had to do. I told him that to be honest, in some ways, I am glad for the downturn we went through...it made us leaner, meaner, cleaner and smarter. Actually, I said, we have really learned a lot from what happened and are better off because of it. The more we talked, he realized that he too had done what he had to do and was more involved in his business than he had been in the past. He also agreed that he had learned a lot...and that it was good - but we both agreed we had learned enough - we didn't want to learn anymore, we both chuckled.
I have always been a true believer that everything happens for a good reason - even when what is going on around us doesn't make sense. I guess my belief is so strong because frankly, it has never, ever let me down. Every time in my life that something bad happened, something good - even better happened down the road. I sometimes had to wait for a while, but I kept on believing and eventually I ended up better off because of the bad thing that happened.
When I talk to dealers about this and get them to reflect on the past - they agree that even though bad things happened in the past, they are really good things in disguise. I spoke with a dealer a few years ago that was really disappointed that he didn't get a store he was trying to buy...he was telling me how much money he spent on accountants and lawyers trying to put the deal together...and how at the end, the deal just didn't come together. He was really upset the deal didn't go through. I kept telling him - Man, you've gotta believe that everything happens for a good reason. His response at the time was - what could possibly be good because of all of this...eight months later, General Motors sent the old dealer the Death Letter and closed the store down. He called me and told me about it...and said that even though he had spent a lot of money trying to buy the store that he will not get back, he was so glad the deal didn't go through - he would have lost a lot more if it had.
A dealer called me the other day that knows about my "everything happens for a good reason no matter what" concept, (it's not like it's a secret) and said that he finally gets it. That because of the car sales issues he had finally really gotten involved with his fixed operation and that he was having a great time learning and working it like it should be done. He was really "into" customer retention and service advertising. He was training his service team, including his managers, on how to answer the phone, how to sell, how to identify and overcome objections and how to keep customers coming back. He said his profits have nearly doubled in service and parts and he was having a ball - all because of the bad stuff that happened in car sales.
Then I talked to a dealer that said he didn't know what all of the hub-bub was about regarding car sales, and financing and recession and all of that negative stuff. He was enjoying record car sales, record service sales and record profits. He said he didn't know what the big deal was all about and didn't understand why everyone was not doing well. Then we talked further. He went on to say that he has always been focused on customer retention. He was always focused on service and advertising and training his people and selling. His store has a great reputation both in sales and in service and the more we talked, he realized that the thing he has that a lot of other dealers don't have was a realistic view of the big picture. He did say that all of the economic issues did cause him some concern, but because of that information, he just focused even more on retaining his customers. He actually spent more on service advertising and doing what was right. He has consistently mailed service reminders - and now he increased his service budget a bit. He has always had a rewards club that enticed customers to return for service and car sales, and he re-energized that concept with his people with a re-kick off meeting. He never stopped advertising cars - and because of that he never stopped selling cars. So, then he said - he got it... the downturn that others are experiencing and the news about it had caused him to step it up a notch - so he says - "I guess everything does happen for a good reason!"
The message here is a simple one. No matter what has happened to you, you have to believe it is for a good reason. If your store got a Death Letter, you get the chance to find a new career that you just may like more than being a dealer or you may find a store that you enjoy running a lot more with a different franchise. If your store suffered a slump in car sales, you had the time and the opportunity to learn and work in your fixed operation departments. If you lost "what you thought" was a great manager - one that you just couldn't imagine doing without, you eventually will find a better one that makes you wish the change had happened years earlier. Truth is, no matter what happens to your business, it isn't that bad. The old cliché, when one door closes, another one opens, has never been more true than it is today.
Keep your chin up. Keep your eye on the ball. Keep in touch with your people and let them know you are positive that things will be ok. Work hard...harder than you ever have in your life and learn more than you ever have - that's what I am doing and I have to admit - I am loving it. Now is the time to get serious about your customers, your employees and your future. I believe the future for the car business is bright and that all of us will be better off because of what has happened. I believe that everything really does happen for a good reason - do you?
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