Master of all classes

Master of all classes

There it is again: that mischievous grin that always spreads across his face when he chats about the details and gives tips and tricks about the used car business. Like this one: "For the first 30 days, I liked to charge a cheeky price, one that was higher than what I had actually calculated. I then presented the car in a prime position on the lot, with a sign that said 'just arrived'. You wouldn't believe how many times that worked!" Just now the aforementioned grin sets in and Peter Pellkofer has this light in his eyes. He is in his element. Shortly afterwards he raises his index finger and becomes serious: "If you don't sell the car within 30 days, then there needs to be a cut, a break in sales, and only then can you offer it again at another place at a lower price."
 

The used car expert advises car dealerships in Austria and Germany and can draw on many years of experience as a sales manager in the car trade. But today he is here as a trainer. As a lecturer at the Santander master class. In this case, “here” means a dignified hotel in Saalfelden, Salzburg, to which the specialist bank for consumer financing has invited a handful of participants for exclusive further training on the subject of used car management. The Santander master class is offered with various modules several times a year at different locations as an exclusive training program for Santander automotive partners. The latter only have to pay a small contribution to the cost of food and lodging. The automotive industry was now able to be there live in Saalfelden. 
The participants, there are never more than twelve, have very different backgrounds: Dejvid (it's always on a first-name basis here) works in a car dealership in Carinthia that has 100 employees, Dejan in a family business with six employees near Vienna. Peter, on the other hand, is the boss of a company in southern Styria that sells around 100 new and just as many used cars a year. This colorful mix is ​​what makes the event so attractive, as everyone agrees.  
Meanwhile, expert Pellkofer is giving non-stop tips. And preaches one thing above all: “You have to proceed in a structured manner in the used car business.” A few key figures are particularly important; everyone should know these about their company: used car sales in the past twelve months, the current used car inventory, the average number of units sold per month, the inventory turnover in the past twelve months (Pellkofer: “That is the engine of the business.”), the average service life of the used car inventory, the service life structure (i.e. how many cars are there for 90 days, how many for 150 days, etc.), the guarantee and financing ratio (should be in each case). over 40 percent, better yet over 50 percent) and finally the average gross profit per vehicle. The inventory turnover should ideally be greater than six and the average service life should be less than 90 days. When it comes to gross profit, Pellkofer set the bar for branded vehicles at at least 1,000 euros; for non-branded used cars, it could easily be 1,500 euros. By the way: According to Pellkofer, a good salesman sells 200 used cars a year. 

You need to know these key figures and check them regularly, says Pellkofer. This is the only way to take measures if necessary to counteract unfavorable developments and optimize processes. The calculation is also very important - from the purchase price to the sales price. The motto of the event matched this: “Anyone can sell used cars, only professionals can make money with them.” By the way, Santander also offers warehouse financing, which can make sense for many companies. 
Back to the key figures: These are like a blood test for the used car business, which gives the responsible managers information about its state of health. To do this, Pellkofer distributes practical tasks to his audience who are willing to learn - concrete key figures of a company, for which strategies for optimization must then be developed in group work. 
And so time flies. Which is the keyword for the next, the last item on the program of the event: At the end there is a helicopter tour in the alpine surroundings. “We always have a treat like this as an extra experience in our program,” explains Marc-Ulrich Lech, who creates the training concepts for the Santander master class with his company Lech-Training. For example, you could do one or two laps in a sports car at the Red Bull Ring in Spielberg. In this respect, a seminar like this is also suitable as a treat for capable employees. 
It was no coincidence that the helicopter tour marked the end of the event. “The last impression stays with the customer for the longest time,” says Lech. And Pellkofer adds: “That’s why, as a used car dealer, you should take your time when handing over the vehicle.” His tip: You could take photos of the handover and, if a woman is present, give her flowers. Because one thing should never be forgotten: the customer should remain connected to the company. Lech adds an anecdote: Dealers in Amsterdam once explained to him that they don't use the term "After Sales" - instead they talk about "In Between Sales". It is quite possible that the next few months will be an “in between” for one or two participants in this master class and they are already looking forward to the next event.