Discontinued model car salesman?

Discontinued model car salesman?

Text: Wolfgang Bauer & Philipp Bednar 

My loss is your gain. – A classic salesman’s insult? Not at all, rather the sad truth of modern new car trading. In times of online new and used car platforms, forums and Internet car configurators, the interested party enters the car dealership well prepared. Often better informed than the seller himself. The good news: If he is there with the printout of the desired model in his hand, then he has actually already bought it. With a little experience and sensitivity, each of these visitors becomes a customer. The question therefore arises: Do I still need a well-paid salesperson for this? "Yes, and how! The requirements have become so much more complex that it doesn't work without car salespeople. And that doesn't just affect luxury brands," explains retail spokesman Josef Schirak. Due to the multitude of new insurance and financing models, modern car salespeople not only have to know everything about the car, but also have to be experienced in the financial and IT sectors. The financial products that are taken out as part of the purchase not only bring the seller a hefty additional commission, they are vital to the survival of many car dealerships in order to generate the necessary contribution margins. Because many car dealerships pay extra when selling a new car (if all costs are taken into account). Andreas Grünzweig, managing director of the car dealership of the same name in Mödling, confirms Schirak's statement: "Of course you need a real salesman. It also ensures our success, because many of the cars sold then come to us in the aftersales business, which means we can cushion the negative new car business." 

The requirements profile

"A good salesperson is communicative, persistent, friendly and also emotional. He has to welcome customers and friends to the car with enthusiasm. Be active. Inactive salespeople will not be successful," reveals Christian Melbinger, Managing Director of Opel Kandl. Andreas Grünzweig adds: "And he has to be a jack-of-all-trades with a killer instinct. Shortly before the deal, the customer still hesitates. Then the salesperson makes the difference. A good salesperson closes the deal, a bad salesperson loses the customer." It is obvious that the requirements profile of a car salesman today - regardless of whether it is a new or used car - has increased: complex IT programs for creating and calculating offers have become standard, as have complex customer databases, online exchanges and constant email inquiries. In addition, the cars themselves have also become more complicated: many different assistance systems have to be explained to the customer, as do the comprehensive entertainment features that are already standard from the middle class onwards. And at the latest when commercial or fleet customers are in the showroom, the salesperson should also be universally trained in tax, financing and funding matters. In short: the job of a salesperson has become more difficult and extensive than ever. 

The responsibility

When the potential customer enters the car dealership, ideally the salesperson is the first point of contact. In this way, he not only represents himself, but also the car dealership and the respective car brand. This also puts greater pressure on the salesperson, as Clemens Dolezal (see interview) from Autohaus Kandl revealed to us: "The variable portion of the salesperson's salary depends not only on the number of cars sold and the commissions from financial services, customer satisfaction is also taken into account. Not only directly for the salesperson, but also the car purchasing margins for the entire car dealership can be linked to customer satisfaction." This means: If the salesperson is quick to close deals but then ignores the customers, it could have unpleasant consequences for both him and his boss. That's why customer loyalty has become the top priority in sales. Patrick Pfurtscheller, Managing Director of Autoland Innsbruck, sees it a little more differently: "There are currently two paths that the automotive industry is taking: that of premium manufacturers who rely on high standards, and those of volume manufacturers who are beating each other up on price. This raises the question: Why do customers of Schleuderware actually need a sales consultant?" Pfurtscheller clearly sees the trend in car dealerships towards manufacturer flagship stores and away from small car dealerships. The Tyrolean also states: "Basically, every brand manufacturer would need highly trained, ideally even academically trained, sales staff. But who is supposed to pay for that given the fact that you can no longer factor the quarter percent commission into the sales price?" Josef Schirak confirms that it is very difficult to find good people today: "You shouldn't forget that a good head salesperson sometimes already has entrepreneurial tasks and is extensively involved. But such people have to be paid accordingly in order to be able to keep them. And that doesn't get any easier." "Ultimately, our success depends on the goodwill of the manufacturers. No matter how good our salespeople are, due to the high requirements and low margins in new car trading, a positive financial year simply cannot be achieved without a manufacturer bonus," says Grünzweig. What's interesting is that, according to our research, manufacturers do not specify salaries or commissions for salespeople, but they do specify the number of employees in sales. This indirectly interferes with the autonomy of the car dealership. 

The reputation

Car salespeople are generally not said to have the best reputation. Salesman Clemens Dolezal explains why this is gradually changing: "When I started, there weren't many consumer protection laws to this extent. A dubious seller, a horse-stealer, could still do crooked business and get away with it. Today the world looks completely different. If the seller acts stupid or makes a dirty deal, he'll quickly find himself in court and have to answer for everything." In addition, many customers inquire in advance in relevant Internet forums, not only about the car, but also about the respective car dealership and its services. In short: In the highly competitive environment of the car trade, no car dealership can afford a dubious, shady car salesman anymore. And if you look at it soberly, the distribution of roles in sales has also changed somewhat: in the golden age, customers fought over new cars. Everyone wanted to be mobile and have a fancy new car. The money was there, there were few worries about the future, and the banks were generous with financing for precisely these reasons. Today, money is less loose, new car buyers are getting older, and cars feel more and more expensive - especially in terms of maintenance. Added to this is the enormous price transparency and the good comparability of the offers. If he wants to do a deal, the seller is practically forced to make the customer completely happy and offer a rock-bottom price, otherwise he will sign two more car dealerships. Patrick Pfurtscheller is pessimistic about the future: "The automotive world is changing and will be different again tomorrow. Unfortunately, one without a sales advisor in the salon who gives free advice, offers free test drives, provides free financial services and carries out free purchase tests. Because for years the costs of this have been borne by dealers from income areas that have nothing at all to do with the sale of new cars." 

The future perspective

Professor Hannes Brachat looks more optimistically into the future of the car trade and its sellers and asks a clever question: "Audi has 42 different models, and will have 60 different models tomorrow. Does anyone really believe that this variety could only be sold digitally or even directly through the manufacturer or importer?" The answer is: no. The central challenge will be to unite offline and online retail under one roof called a car dealership. And that will work, says Brachat. The areas of responsibility in the sales area will focus more on coaching and moderation than on hard, classic selling. Brachat: "Behind every sales success there is action, hard work and more hard work. Every customer is a market! I have to have the motivation within me: I want the order. With ten contacts, two sales are achieved. So no matter what your sales adventure is, you have to keep getting up and saying to yourself: I want it." Then, according to the professor, in the car dealership of the future there will not only be a job for salespeople, but also good earning potential. Anyone who is already thinking about tomorrow today should also look into targeted further training opportunities. The Kufstein University of Applied Sciences offers courses and an MBA degree specifically for salespeople and automotive managers (see box). By the way, Professor Hannes Brachat is just one of many top-class guest lecturers at the FH Kufstein. Especially now, in times of massive change, the safest investment is in your own training. Many companies support relevant training at technical colleges. It may be worth asking the executive floor. Or do you know a business manager who doesn't want to employ highly trained people?