RV dealers in most parts of the country are now delivering the last of early spring sales. Consumers have largely taken their RVs from storage to get ready for camping. Campgrounds are beginning to open.
May kicks off the camping season in the upper half of the country, if the weather allows.
The first quarter of 2024 was unexpected, with reports and surveys indicating sales in some states declined 20% to 30%, resembling 2017-2019 stats. In all reality, if you are comparing today’s atmosphere to the anomaly of the past four years, your projections will be skewed.
The RV industry was built by independent owners and families who dealt with the business’ ebbs and flows. Family dealerships relied on strategies passed down since their founding. Those strategies all start with the “basics.”
When business follows supply and demand, as it has in the past few years, operations take shortcuts in the sales process, letting consumers close a deal themselves because of inventory availability.
Now that the industry is back to “normal,” some salespeople seem to have forgotten the sales process, or how to sell and close a deal. In a recent sales workshop, this topic spurred a vital discussion. Salespeople were not selling. They were order takers.
Now, they need to do their job. The sales manager must manage and make sales.
When you stick to the basics during the busiest and record years, you will find a consistent way of doing business throughout the year.
I see dealers tightening the ship and sticking to the basics in everything. They are not worrying about what is happening outside their store. They are focused on what they can control—the basics, business and people, just as their predecessors did.
When our discussions turn to strategy, I always try to stick to the “basics.” The basics are the best approach for any dealership. We talk in-depth about the basics of inventory management, the basics of employee development, the basics of processes and procedures. Most important, we talk about following up with sold consumers! Reach out to them within 24 hours of delivery!
Some may be reading this and wondering who does not do this. You would be surprised, as those who don’t may be your sales staff. Inspect what you expect.
Where should you start with the basics? Dealerships have many areas where practicing the basics is critical. For instance, start your day as if it were your very first day.
Do your parts/service/sales managers visit their teams on a daily/weekly basis? They should be discussing current performance, goals and current opportunities. They should be discussing wins and losses for the week/month and congratulating those who have done their jobs well. They should be discussing process breakdowns to increase efficiency.
When was the last time the parts/service director met one-on-one with a counter salesperson or stood in the service lane to help?
The sales and F&I teams should meet daily. We call them PTI (protect the income) meetings. How many days a week does your sales manager hold training classes? If the answer is none, how is your manager developing employees? The teams should meet at least two or three mornings a week. This is a terrific opportunity to encourage everyone to focus on the business day. When was the last time your sales manager sat with the team one-on-one and helped them make a follow-up call?
How is your inventory? How many 2022 or 2023 models are still on your lot? Are your curtailments disrupting your P&L? How will you dispose of the aged inventory now, with 2025 coming out soon?
When seeing dealers and their teams manage their inventory together, I find their focused collaboration rewarding. Instead of being managed from the top down, inventory is based on front-line experience by top producers and sales managers. Unsurprisingly, their inventory is in great shape before 2025 RVs arrive.
Sales
Dealers should provide ongoing sales training daily, and sales managers should coach every time a salesperson brings them a deal.
How about a 100% turnover rule? Nobody walks until the boss talks.
This rule was the law of our show floor days. We would introduce every single customer to the sales manager as the inventory manager, saying, “Maybe he can think of something I missed. I am going to service to check on something.” Then, leave the consumer with the manager and walk away.
The No. 1 reason the customer says no is they do not like you, they do not trust you, or they do not believe you. So, let the manager restart the conversation with the consumer.
Why should you have 100% turnover to F&I at the point of sale? For compliance.
Properly introduce the customer to the employee who will deliver the RV and iron out the details of your deal. Yes, this includes sales closings conducted over the phone! Only the F&I staff and the sales manager should be allowed to collect down payments or credit card information.
Sales process basics start with a professional greeting. Say something like, “Welcome to XYZ RV,” rather than, “Hi, can I help you?”
Sit with consumers and start building a relationship. Then, follow all the basic steps to the sale.
Do you ever wonder why some salespeople are top performers, with their names posted atop the sales lists every month? Top performers are successful because they stick to the basics, period. There is no magic close. They do not receive special treatment. They are focused on their responsibilities.
Sales managers, how many meetings do you conduct discussing different closing techniques or ways to overcome objections? If you are not working a deal or taking a turn, you should train, teach and develop your staff. Remember, you are the sales manager, which means you are supposed to be the strongest salesperson in your department.
Spend your time following up with sales staff daily.
F&I/Business Office
Regarding basics, F&I professionals must follow a disciplined process from start to finish on each deal. The business office is critical to the whole dealership’s operation. The F&I manager is involved with every department when posting deals.
Some dealership operations have a structured career path. A salesperson is promoted to the business office before moving up to sales/desk manager. These companies believe sales managers with F&I experience make a difference. They understand the deal more deeply, looking at it from a finance manager’s viewpoint. Most managers who have been groomed with F&I experience perform with a stronger skill set.
The “basics” for the business office start with a mindset and how you present yourself. Do you portray yourself as the professional the position requires? Do you dress like a banker?
There is no room for error in the business office. Relying on the basics is critical. Here are a few musts.
Take 100% of turnovers at the point of the sale. Follow the 300% rule—present 100% of the products to 100% of the people 100% of the time, without exception.
Service
The service department is the store’s lifeblood. The phone is critical to your department, so focus on phone skills. Stop responding to scheduling questions with reflexive responses such as, “We are three weeks out or a month out” or “We are so busy we won’t be able to get you in until after Memorial Day.”
Your lifeblood deserves better, especially those who bought an RV from you. Try a different approach.
Ask consumers what an ideal time window is for them. Explain scheduling restraints professionally. Ask if they could drop off the RV and leave it for a few days. Maybe you can free up a tech for a quick diagnosis. That way, if a part is needed, you can order it and possibly have the part by the time you have the RV in for service. The idea is that your consumers should not feel inconvenienced.
Another crucial question for consumers is how they will pay for this repair. Will they use cash, a credit card, a factory warranty or an extended service contract? These are vital questions.
Repairs paid via extended service contract/factory-limited warranty must be preapproved. Too often, when consumers go to pay, they pull out their extended service contract. By then, it is too late because the repairs must have been approved before completing the work.
Revenue opportunities abound in the service department. Be sure to offer each consumer an upsell product while their RV is being serviced. Do not miss the opportunity. The RV is here now, and an appointment was hard to get. Offer consumers wheel bearings, alignment, tires and more.
In closing, the season has arrived. Seize the moment. Do not shortcut your consumers. Get back to the basics and see things changes.
Greg Artman is the national training manager for Diversified Insurance Management, a Higginbotham company.
