THERE'S SOMETHING MISSING IN OUR INDUSTRY
Posted: Thu May 20, 2004 7:20 pm
THERE'S SOMETHING MISSING IN OUR INDUSTRY
By: Carl Davidson
I have the good fortune to work in several industries and I have noticed that some things are missing in ours. These things are tools you need to make the money you deserve. In my opinion, all of us, the manufacturers, the associations and the dealers are to blame. I realize this is controversial and I would be interested in your comments. Email me at [email protected] or call me at 800-941-0068. Let's take a look at some of the areas that in my opinion are mysteriously missing and what you can do about it.
What Some Manufacturers Are Missing
This is a strange industry. Most manufacturers consider the dealer the end user. This is not as true in most other fields where everyone acknowledges that the customer is the end user. For example, if you buy an IBM computer and it breaks, you call IBM for support, not the place where you bought it. Oddly, many homke manufacturers consider their warranty arrangements to be with the dealer, not the end user. They set the policy with the dealer, they expect the dealer to absorb a lot of travel etc. This is far different from many industries. This puts a lot of financial pressure on good, ethical dealers and sets the industry up for the reputation we get when some dealers fail to live up to their responsibilities. I am surprised that dealers expect so little from the manufactures they represent.
This is one of very few industries where the manufacturers do not provide financing. Look at the slump we just came through. It was mostly caused by finance companies cutting down on their acceptance. In other industries, the manufacturers own the finance companies and use this to smooth out the bumps for their dealers. For example, after 911, most experts predicted big drops in auto sales, so every car company ordered their finance companies to finance cars at 0% interest. This has resulted in boom years and big profits for the dealers. The manufacturers made up their financial losses by raising car prices, but the point is that the sales continued and dealers survived and potential catastrophe. In our industry, most manufacturers see financing as your problem! They may make deals with outside finance companies for you but that's about it. Just imagine where the auto industry would be if they did the same.
In other industries, the manufacturers dictate the level of customer satisfaction. Again, in autos, customers are surveyed at regular intervals to see if they are satisfied with the product, with the dealer and with the service. Dealers must achieve certain levels of customer satisfaction to earn money and to stay dealers. We are missing the boat in this area. I bought a manufactured home a few years ago and was never contacted by the manufacturer or dealer ever again.
In automobiles, the manufacturers insist on certain levels of training for all personnel. I trained Volvo dealers for several years. Every member of every dealers' staff had to attend and pass training every year to be certified. Dealers who had all their staff certified got big rebates from the manufacturer and this more than paid for the training. Our industry sees this as your problem and that is why our industry has a far lower level of staff training.
Finally, in other industries, the manufacturers lead the way in financial areas too. They make sure you will make a profit. For example, GM has a specific chart of accounts and accounting systems that all dealers must use. This standardization allows dealers to form groups to learn from each other. It also allows the manufacturer to detect dealer problems before they arise and help solve them before they create a black eye for the industry. Why is all this missing from our industry?
What The Associations Are Missing
It isn't all the manufacturers. The dealer associations in our industry do a great job in a fairly narrow field but are missing some areas the dealers need help with. The associations need the financial support of the manufacturers and we must realize that those who pay the piper call the tune. In our industries the association serve the manufacturers as much or more than they do the dealers.
I believe that the associations do a great job with lobbying and laws but many dealers feel there are areas where help is needed. For example, you would think that the associations would be leading the charge to get the manufacturers to take responsibility in some of the areas above. They might also use your group purchasing power to help you in areas you need.
One reason many dealers have trouble recruiting good quality sales and service candidates is that they don't offer group health and insurance benefits. I believe an association should help make these benefits affordable and available to dealers through group buying power. This is just one area.
Since almost all dealers do not have enough great sales staff, you might think the associations would offer deals on recruiting and training sales teams. Not just a web page with job postings but a serious recruiting program. Perhaps they could offer deals on financing or merchant accounts or office supplies or many other things. I agree that lobbying Washington is useful but there are many areas where the associations are lax and the dealers really need help.
What The Dealers Are Missing
Why has this happened in our industry and not in others? Ignorance and low expectations. Let me explain.
Raise your expectations. You are not alone. Your business should be a partnership of yourself, your manufacturer and your association. Make a list of all your problems and see who might help you solve those challenges. Then expect them to help you.
Next, subscribe to the trade journals of sister industries to learn what is going on. You might subscribe to (and read) Automotive News or journals for the real estate industry or the log home industry or many others. See what manufacturers and associations do in those industries and how it relates to you.
Read!!! I am often shocked at how little many dealers read. How can you stay on top if you have no new knowledge or inspiration? For example, today I went to amazon.com and keyed in 4 topics I feel you should be constantly reading if you really want to get ahead. The results of 2 minutes of searching gave me 24,456 books on manufactured homes, 23,962 on financing homes, 70,949 on selling homes and 2507 on finding prospects for homes. I am not saying they are all great books and would make your fortune but if you have read none of them, you have to ask yourself how you expect to stay on top of a rapidly changing industry in a rapidly changing world.
You might also contact associations in other industries and see what they offer members. I think you will be surprised.
If you consider that there is something missing, some of our recent woes may be caused not by financial conditions but by accepting too little from the manufacturers, from the associations and from ourselves.
WHAT DO YOU THINK? Share your thoughts in the open form below.
Carl Davidson is the president of Sales & Management Solutions. More than 7,000 companies in 7 countries use his video sales & management training cassettes. He also performs live as a speaker/entertainer and seminar leader. For more information, call 800-941-0068 or visit www.carldavidson.com .